Govt issues new decree on labor

JAKARTA (JP): Minister of Manpower and Transmigration Al-Hilal Hamdi issued a new decree on Thursday only to uphold the previous decree that had sparked protests and caused contention between workers and employers.

Labor unions, however, rejected the new decree as it did not satisfy their demands and they vowed to go on national strike on June 6.

The new Decree No. 111/2001, dated May 31, does not differ much with the controversial Decree No. 78/2001, which stipulated compensation for retiring and resigning workers.

The only point in the new decree that differs from the previous decree is a clause that requires companies to comply with their collective labor agreement if the amount of compensation set in the agreement is higher than that stipulated in the decree.

While the clause sounds favorable to workers, some unionists claim that it does not side with their interests as some employers have not made such an agreement. In addition, not all collective labor agreements clearly stipulate about compensation for retiring and resigning workers.

Workers want the minister to revoke Decree No. 78/2001 and also the new Decree No. 111/2001 and re-enforce Decree No. 150/2000, which required employers to provide severance and service payments for retiring and resigning workers and those who were dismissed for committing major violations.

The chairman of the Federation of All Indonesian Workers Union (FSPSI), Jacob Nuwa Wea, said that they would stage a national strike on June 6 to press the government to re-enforce Decree No. 150/2000.

"All five million workers grouped under FSPSI have been called on to stage a national strike on June 6 to force the government to annul the two recent decrees and re-enforce the 2000 one," he said.

He said tens of thousands of workers in Jakarta and surrounding areas will be mobilized to occupy the Ministry of Manpower and Transmigration to force the minister's resignation.

"It is better for us to have no Minister of Manpower because the incumbent has taken the side of the investors and has only fought for their business interests," he said.

Meanwhile, Tianggur Sinaga, spokeswoman for the Ministry of Manpower and Transmigration, called on the unions not to prolong and sensationalize the issue as the government was facing more serious problems such as large-scale unemployment.

She said the issuance of the new decree aimed to accommodate the interests of workers as well as investors and employers. She contended Indonesia needed more investment to absorb the soaring number of jobless people, currently totaling about 37 million.

Tianggur noted that it would need accelerated economic development to absorb more people into the labor market. According to the ministry, every 1 percent of economic growth absorbs approximately 200,000 workers.

"If the country could reach 4 percent in economic growth this year, it would mean that 800,000 of the current 37 million jobless people could be absorbed into the labor market.

"That is why the government strives to maintain a conducive climate for investment to encourage higher economic growth as well as a higher employment rate," she said.

In addition, Tianggur said her office had issued the new decree after an in-depth study on the issues of severance and service payments for retiring and resigning workers and those who were dismissed for committing major violations.

"The government has not found any provision for severance and service payments for retiring and resigning workers in other countries," she said in a media statement.

In addition, she said the number of workers facing such problems was relatively small.

According to data at the ministry, only about 2,000 workers, or 2.5 percent of the total number of workers, were dismissed for committing major violations between July 2000 and Feb. 2001 while the number of workers who resigned was only 249, or 0.31 percent, in the same period.

She added that in addition to the labor issue, the government has to work hard to solve crucial problems on security, tax, electricity rates and fuel prices, all of which could obstruct the investment climate in the future. (rms)