Govt issues new decree on labor

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)