Indonesian Political, Business & Finance News

Govt bows to pressure, revises two labor bills

| Source: JP

Govt bows to pressure, revises two labor bills

The Jakarta Post, Jakarta

Bowing to strong demands from both workers and the business
community, the government has finally agreed to revise crucial
bills on labor protection and settlement of industrial relations
disputes.

Minister for Manpower and Transmigration Jacob Nuwa Wea said
here on Wednesday that the government would revise some chapters
in the bills that have met strong opposition from various groups,
including the chapters on workers' right to go on strike, labor
dismissal, contract workers and protection for female workers.

"All in all we will revise 35 chapters of the two bills,"
Jacob said after a meeting with trade union leaders and non-
governmental organizations.

Jacob said the revisions would be made after receiving inputs
from various groups including trade unions, non-governmental
organizations and the business community.

The government plans to meet with members of the House of
Representatives (DPR) on Sept. 4, 2002 to discuss revisions to
the two bills, he said.

The House deferred endorsement of the bills after both
laborers and the business community expressed strong opposition
to the bills.

Workers have, in the past few weeks, stepped up their protests
demanding that the House stop deliberating the two bills on the
grounds that they provided little protection to laborers.

A particularly violent protest, which saw two workers shot by
police, occurred in Bandung earlier this week over the same
issue.

The business community criticized the bills as "overly
protective" and a deterrent to investors. They warned that if the
bills were passed, it would further deteriorate the country's
business climate.

Jacob admitted that the two bills had been rejected by both
the business community and workers.

"For workers the bills do not provide adequate protection,
while the business community consider the bills to be too
burdensome," said Jacob, adding that the government, together
with DPR members, would try to accommodate the needs of both
sides.

"We will determine which chapters have to be revised to give
maximum protection to workers and which chapters can be tolerated
by the business community," the minister said.

According to Jacob, the right for women to take a holiday
during their monthly period would be reintroduced in the bills.

"For the right to go on strike, its mechanisms and procedures
will be regulated so that businesses will still have to pay the
salary of the striking workers for as long as the strike lasts,"
he said without elaborating.

Meanwhile, the Indonesian Legal Aid Foundation (YLBHI) also
expressed opposition to the two bills on Wednesday, arguing that
they were against human rights principles.

It particularly pointed to an article in the labor protection
bill that said that the state was not responsible for providing
job opportunities to its citizens, leaving the task of creating
jobs to market mechanisms entirely.

The article, according to YLBHI's interpretation, ran contrary
to a United Nations covenant on economic, social and cultural
rights (the ECOSOC Rights Covenant), which stipulates that, among
other things, the state shall recognize its citizens' rights to
work, including the right to choose a job.

"As the number of unemployed people continues to rise while
job opportunities continue to shrink, leaders of the country have
to ensure the availability of jobs as stipulated in the ECOSOC
covenant," the group claimed in a press statement received by The
Jakarta Post Wednesday.

The foundation also criticized chapters on contract workers in
the labor protection bill.

"Contract work has proven that it creates more unemployed
people and increases unilateral dismissals as such an arrangement
does not provide protection and employment guarantees for
workers," it said.

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