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.