Employers, trade unions oppose social security bill

Employers, trade unions oppose social security bill

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Employers and workers joined forces on Thursday to oppose the
bill on national social security (SJSN) which they said would
cause legal uncertainty and confusion among the public.

The opposition was expressed in a bipartite meeting between
the Indonesian Employers Association (Apindo) and major labor
unions, including the All-Indonesian Workers Union Federation
(FSPSI), the Indonesian Prosperity Trade Union Federation (FSBSI)
and the New Indonesian Labor Union Federation (Gaspermindo Baru).

Apindo deputy chairman Hasanuddin said the government and the
House of Representatives should drop the bill because it had
created confusion among employers and workers and overlapped with
existing laws on social security programs for workers, civil
servants and servicemen.

"We oppose the bill because the stake-holders, in particular
Apindo and labor unions, were not involved in preparing it and
that is why its submission by the government to the House has
created confusion among us," he said, adding that the government
should not make any legislation unilaterally without consultation
with the relevant stakeholders.

Hasanuddin insisted that with the bill, the government's
concept of social security programs as stipulated in the amended
1945 Constitution was flawed.

"The government should run a separate basic social security
program for the unemployed and the poor and should include them
in the existing social security programs because according to the
Constitution, orphans and the unemployed are the responsibility
of the state," he said, adding that workers and the unemployed
held a different social status.

He appreciated the government's commitment to developing a
welfare state with the social security system but warned that
many welfare states such as France and Canada have been facing
financial difficulties in covering the programs due to the ailing
global economy.

"The government must be prepared to outlay a huge amount of
money if it goes ahead with the mandatory social security
system," he said.

The government proposed the mandatory social security system
to provide social security protection for all 230 million people
since existing insurance schemes only cover 20 percent of the
population.

Relevant government officials have insisted that the despite
the bill, the existing state-owned companies --PT Jamsostek, PT
Askes, PT Taspen and PT Asabri-- would continue with the current
social security schemes but they were required to make
adjustments in terms of insurance schemes, premiums and claims.

Apindo secretary-general Djimanto explained that after
conducting a joint in-depth study, employers and workers found
the bill confusing, since the bill on one side could be treated
as an umbrella for other laws on social security programs, but it
also went into detailed social security programs for the entire
workforce, including the unemployed and the poor.

"We would consider accepting the bill if it regulated general
principles of the social security system with the exception of
the proposed detailed programs to avoid an overlapping with
existing social security laws," he said.

If the government enforces two legislations for two similar
obligatory programs, the result would be legal uncertainty, he
said.

Idin Rosidin, secretary-general of the FSBSI, said labor
unions could not accept the bill that divided the cost of the
health insurance scheme, with both workers and employers
contributing 50 percent of the premium.

Under the current health-care program provided by state
insurance company PT Jamsostek, the participants' premiums are
covered by employers. Jamsostek covers social security schemes
for 23 million workers nationwide.

FSPSI deputy chairman A. Sidabutar concurred, saying it would
be better for the government to give more attention to the
ongoing review of Law No. 3/1992 on social security programs for
workers to prevent any more leakages in Jamsostek's Rp 33
trillion assets and to invest them carefully to improve workers'
welfare.