Government delays decision on workers

Government delays decision on workers

JAKARTA (JP): Following days of violent protests in many
cities, the government has backed down, for now, postponing the
implementation of the controversial ministerial labor decrees on
compensation for workers leaving their place of employment.

Minister of Manpower and Transmigration Al-Hilal Hamdi said on
Friday evening the implementation of decrees No. 78 and No. 111
had been postponed, and that Decree No. 150/2000, the earlier
decree covering worker compensation, would come into effect for a
month while a review was held.

The decision was made following a meeting chaired by
Coordinating Minister for Political, Social and Security Affairs
Agum Gumelar. The meeting came after days of labor protests
against the two decrees had virtually paralyzed some cities.

The two decrees were issued by Al-Hilal in response to
concerns from the business community over Decree No. 150/2000,
which stipulated substantial payouts to workers who were
dismissed or resigned.

The decree was issued by Al-Hilal's predecessor Bomer
Pasaribu.

Over the next month, a tripartite forum comprising employers,
trade unions and government representatives will deliberate the
issue.

The two-hour meeting on Friday was also attended by Indonesian
Military chief Adm. Widodo A.S. and National Intelligence Agency
chief Lt. Gen. (ret) Arie J. Kumaat.

Representing the business community and labor unions at the
meeting were, among others, National Business Development Council
chairman Sofyan Wanandi, Association of Indonesian Automotive
Industries chairman Subronto Laras, Indonesian Employers
Association Djimanto and All-Indonesia Workers Union Federation
chairman Jacob Nua Wea.

Indonesian Prosperity Trade Union chairman Muchtar Pakpahan
was absent from the meeting.

Jacob said postponing the implementation of the two decrees
was the best choice for now. But he could not hide his
dissatisfaction that Agum was reluctant to discuss the decision
with the public.

"Many workers are still awaiting the government's decision.
Therefore I have asked Pak Agum to tell the public about it,"
Jacob said.

Decrees No. 78 and No. 111 were issued to replace decree No.
150, which required employers to provide severance pay and a
merit of service payment to workers leaving their place of
employment, even if they were dismissed.

Under decree No. 150, workers are entitled to receive
severance pay of 100 percent of their gross salary for each year
they were employed at a company. The highest payout is 700
percent of gross salary for those who have worked at a company
for six years or more.

Regarding the service payment, employees who have worked at a
company for up to two years receive 200 percent of their salary.
The highest payment is 1,000 percent of gross salary for those
who have worked at a company for 24 years.

Protests

Meanwhile, after two days of violent labor protests, the
situation in Bandung began to return to normal, with public
transportation and shops beginning to resume operations.

Bandung Police chief Sr. Comr. Timur Pradopo said 89 people
had been questioned in connection with the unrest and nine of
them were being detained.

Timur added that not all of those being detained were workers.
He said two of them were students and four were unemployed.

"According to our preliminary investigation, the protests were
not pure labor demonstrations. The rallies were being misused by
other parties," Timur said without elaborating.

In Gresik, East Java, thousands of demonstrators, riding on
motorcycles and trucks, pelted stones at several factories along
Jl. Bambe, which connects Driorejo and Panjang -- both industrial
areas. Panjang is 20 kilometers west of Surabaya, the provincial
capital.

When the demonstrators reached PT Surya Kertas, police fired
warning shots and tear gas to disperse the crowd.

A security post and dozens of parked cars were attacked by
demonstrators during the protest.

Surabaya Taman Police chief Sr. Comr. Soedirman said "tough
action had to be taken because the protesters had become brutal
and attempted to attack our officers".

"So far there have been no fatalities, but we brought in 10
people for questioning."

In a related development, East Java Police chief Insp. Gen.
Sutanto said the recent wave of labor protests had been "used by
a third party trying to exploit the chaotic situation during the
protests".

Meanwhile, Jakarta Governor Sutiyoso said his administration
had decided to bow to workers' demands and would implement decree
No. 150. (02/jun/25/nur/emf)