Government may increase regional minimum wage by 16 percent

Government may increase regional minimum wage by 16 percent

JAKARTA (JP): The government will soon announce a raise in the
regional minimum monthly wage, which officials have revealed is
expected to be about the same as last year's average 16 percent
rise.

Syaufi'i Syamsuddin, director general for labor standards and
industrial relations at the manpower ministry, disclosed the
announcement was expected to be made by the end of the month.

He would not go into detail, saying the specifics were still
being discussed but that the percentage raise would be about the
same as last year.

"We have received numerous proposals on the hike from
governors but the government has yet to decide the percentage.
However, it will be announced in the near future," he said.

Syaufi'i said the announcement would be made soon to allow
companies a three-month grace period to make the necessary
preparations before the wage increases take effect in April.

He said the early announcement would also allow troubled
companies time to request a deferral if they have sound reasons
they cannot afford to increase wages.

He added that the government would not unilaterally decide on
the raise, but would first consult with provincial
administrations and all parties representing workers and
employers.

Syaufi'i acknowledged, however, that the purchasing power of
most workers in the country was very weak. He even conceded that
with the current minimum wage most workers could not meet their
daily minimum needs.

"How can workers in a factory in Jakarta meet their daily
minimum needs if they are paid Rp 231,000 per month," he said.

But he noted that with the economy not fully recovered, it
would also be too burdensome for companies if the increase was
too high.

Unions

In compliance with the International Labor Organization's
(ILO) convention on the freedom of association, Syaufi'i also
said Indonesia's four million civil servants were free to reject
membership of the Indonesian Civil Servants Corps (Korpri), and
establish a separate labor union if they wished.

"The government no longer has the right to bar civil servants
from joining political parties or to force them to continue to
accept Korpri, as it is against ILO conventions," Syaufi'i said
after receiving an ILO delegation here on Monday.

He said the government would amend the 1999 law on civil
servants to comply with the ILO convention, which it ratified in
1997, and issue a law guaranteeing freedom of association
applying both to workers and civil servants.

"The manpower ministry will soon submit a bill on employment
training, industrial relations and freedom of association to the
House of Representatives for endorsement," he said.

However, those serving in the military and police will still
be excluded.

Syaufi'i pointed out that a new ruling excluding them would
soon be issued.

"It would be dangerous if servicemen were allowed to join
political parties and set up their own unions," he said.

So far, at least 26 labor unions, including the government-
backed All-Indonesia Workers Union Federation (FSPSI), have been
established to represent workers.

Payaman Simanjuntak, an expert staff at the ministry, warned
that despite newly granted freedom of association, civil servants
would not be allowed to strike, since they have a specific public
service duty.

"Can you imagine what would happen to hospital patients if
nurses were allowed to stage strikes. Public servants are allowed
to air their aspirations but they shouldn't be allowed to stage
labor strikes," he said in the meeting. (rms)