Government rejects workers' demands on ministerial decrees
Government rejects workers' demands on ministerial decrees
JAKARTA (JP): President Abdurrahman Wahid turned down on
Tuesday the demands of the Federation of All Indonesian Workers
Union (FSPSI) to nullify two controversial ministerial decrees on
labor issues but agreed to give some concessions to protect
workers rights.
Citing investors concerns, the President told the Union
leaders, that he was fully supportive of the two decisions of the
Minister of Manpower and Transmigration Al-Hilal Hamdi which
negated employers' obligations to pay severance and service
payment to resigning and retiring workers.
The Union chairman Hikayat Atika Karwa quoted the President as
saying that the government would not bow to the workers' demands
to revoke the minister's Decrees No. 78 and No. 111, issued this
year, for the sake of maintaining a conducive investment climate
in the country.
The President said the two decrees had to be issued to replace
previous ministerial Decree No. 150 following complaints from
investors, which the President described as counterproductive to
attracting private investment.
However the President also allowed provinces which had
implemented the Decree No. 150 to continue the policy if it was
deemed necessary.
"In principle the government still sticks to the two decrees
and refuses to revert to Decree No. 150," said Hikayat after the
meeting.
The source of the dispute derives from the decree No. 150,
which was issued by then minister of manpower Bomer Pasaribu in
June last year.
The decree obliged employers to pay a severance compensation
and a merit or service payment to the sacked employees. According
to the decree the employees are entitled to receive 100 percent
of their gross monthly wage for each year they have worked at the
company. Those who have worked over five years will receive 600
percent of their wages.
The workers also have the right to receive service payment,
which totals 200 percent of their gross monthly salary for those
who have worked up to six years.
Meanwhile retiring workers are entitled to a service allowance
in line with their working period.
Bomer's successor, Al-Hilal annulled the decree following
pressure from investors. In his Decree No. 78, issued in April,
the amount of the severance payment is smaller and there is no
obligation for companies to give service payment to resigning
workers.
Decree No. 111, stipulates that companies are required to obey
their collective labor agreement if the amount of compensation is
bigger than regulated in the decree.
Demo
While Hikayat was meeting with the President, thousands of
workers of the industrial town of Sidoarjo, adjacent to the East
Java capital of Surabaya, took to the streets again on Tuesday
demanding that Decree No. 78 be revoked and the reinstatement of
Decree No. 150. They staged a similar protest on Monday.
The workers were from various organizations, including All
Indonesian Workers Solidarity Party (FSPSI) and the Indonesian
Prosperity Trade Union (SBSI) and Indonesian Workers Front of
Struggle (FNPBI).
Several incidents spiced the street demonstration. The
protesters threw stones at company buildings when encouraging the
companies' workers to join them.
A minibus belonging to PT Trias Sentosa was ransacked and the
fence of PT Panggung Elektronik was destroyed, forcing the
security officers to alert demonstrators by firing warning shots.
Comr. Soedirman, chief of Surabaya Taman Police, which
oversees, among others, Sidoarjo said that some 500 personnel
were deployed to anticipate possible rioting.
"We blocked the Waru traffic circle to prevent protesters from
entering Surabaya, and we succeeded." (prb/nur)