Factories hike salaries in aftermath of riots

Factories hike salaries in aftermath of riots

By Ridwan M. Sijabat

MEDAN, North Sumatra (JP): If one good thing has come out of
last month's labor riots, it is that factories have finally
raised their daily wages and begun to meet various other
obligations.

In the aftermath of the riots, Medan manpower officials and
the military have been touring factories in the province
convincing owners of the need to respect the workers' rights for
the benefit of their businesses.

Local factories have been notorious bad in the department of
working conditions and wages, largely because they thought the
huge sums they pay for protection to local gangs made them immune
to reproach.

This belief was shattered by the massive protests last month
that turned into a riot, leaving one businessman dead and dozens
of factories severely damaged.

"Now virtually all of the around 4,000 companies in the
province have met with the minimum wage regulations," Chief of
the North Sumatra Manpower Office, Khairun, told The Jakarta
Post.

"They have also agreed to respect workers' rights, such as
their right to organize, and meet some other basic requirements
such as health and transport allowances," Khairun said.

He said this greater compliance is largely attributable to the
riots.

The Manpower Office and the North Sumatra Bakorstanasda, the
provincial internal security agency headed by the local military
commander, this week met to evaluate the situation since the
riots.

Encouraged by the positive development, the local authorities
are now considering hiking the daily minimum wage for the
province from Rp 3,100 ($1.5) to Rp 3,750 beginning on Aug. 1,
Khairun said. "Governor Radja Inal Siregar has sent the proposal
to Jakarta for approval by Minister of Manpower Abdul Latief."

Asked about the Rp 7,000 minimum wage that was demanded during
the workers' protests, which were sponsored by the Indonesian
Prosperous Labor Union (SBSI), Khairun said the demand was
irrational and impossible to meet.

The North Sumatra branch of Astek, the state company which
runs the workers' insurance program, also reported brisk business
after the riots with more and more local companies enlisting
their workers in the social security plan.

Around 20 companies have registered with Astek's office since
the start of the month, its chief Sjahradjat Achmad said.

The number of local companies participating in the Jamsostek
social security program has almost reached 2,100, up from 1,700,
he said.