Government told to punish banks breaching labor laws

Government told to punish banks breaching labor laws

BOGOR (JP): Trade unions in the commerce, banking and
insurance (NIBA) sectors called on the government to take action
against a number of banks and insurance companies operating in
Jakarta, for using employment agencies to get new recruits.

Bomer Pasaribu chairman of the NIBA unions, said yesterday at
the opening ceremony of the union's national congress in Bogor,
some 60 kilometers south of Jakarta, that the trend hurt workers
and the practice was against the labor law.

"The government has not yet taken the proper steps to stop the
practice. But it must stop this malpractice and punish the banks
and insurance companies which have been dealing with brokers to
get new employees," Bomer said.

According to Bomer, at least six private banks had paid labor
suppliers to get new staff.

The banks employed the new employees on contracts. In case of
dispute between the employers and the employees, the employers
always said their direct dealings were with the suppliers, not
the employees.

"Employees are always in weak position in case of dispute,"
Bomer said.

The revised labor law, issued in 1969, allowed the contracts
only for workers on probation and for part-time jobs, while a
Ministerial Decree, issued by Minister of Manpower Abdul Latief
in Jan. 1996, phased out the use of daily workers and the
contract system from permanent jobs.

NIBA is one of 19 sectoral trade unions under the umbrella of
the government-recognized Federation of All Indonesian Workers
Union (FSPSI). The congress, the first since it was founded in
1995, was to discuss the coming free trade era.

Bomer said the use of labor supply companies helped employers
safeguard investment and keep down labor costs.

"With contracts between the workers and supplier companies,
the banks and insurance companies need no more industrial
relations, collective labor agreements (KKB), or negotiations
with their workers because all things concerning workers depend
on the contract between the workers and their suppliers.

"The employers could easily and arbitrarily dismiss workers
without severance pay," he said. "Under the contract system,
workers would certainly loose their basic rights."

Speaking of the new daily minimum wage, to be implemented next
month, Bomer said the government should have taken workers'
families into consideration.

"Up to now, the monthly minimum wage has been set with single
workers in mind, without (considering) their families and this is
not in accordance with the 1993 State Policy Guidelines (GBHN),"
he said.

He expressed his deep concern over the low minimum wages in
the country, saying that they were the lowest of the ASEAN
countries. The minimum wage differs in each province. For the
Greater Jakarta area, for example, the current minimum monthly
wage for a worker is Rp 156,000 (US$68), and the new wage will be
Rp 172,000.

"The minimum wage is still below the minimum need while the
country's economic growth has reached over seven percent
annually," he said. "It's time for workers to also enjoy the
fruits of national development." (rms)