Govt policies blamed for labor disputes

JAKARTA (JP): Representatives from various industrial associations blamed on Wednesday the government's misguided labor policies as being the cause of the current spate of labor disputes, and, consequently, foreign investors' reluctance to enter Indonesia.

Members of the National Economic Recovery Committee (KPEN), the Indonesian Employers' Association (APINDO), and other industry associations questioned the role of the Ministry of Manpower in handling current labor issues.

They charged that recently issued policies smacked of political interference for the purpose of seeking grass-roots support from workers.

Hariyadi B. Sukamdani of the KPEN said that labor policies were not only shortsighted but also discriminated against employers.

"Today's labor problems mostly arise from inappropriate government policies," Hariyadi asserted during a media briefing.

He said that employers were most concerned about Minister of Manpower Decree No. 150/2000, which he described as irrational. The decree provides, among other things, that companies must provide severance pay to employees who resign voluntarily.

Hariyadi said that in response, industrial associations had asked the Supreme Court for a judicial review of the decree.

"We don't demand that the Supreme Court revoke the decree, but rather that it revises it," he said.

According to Hariyadi, the manpower minister admitted to there being flaws in his decree, but has done nothing so far to revise it.

"Are we to set a higher standard than the ILO (The International Labor Organization) does? Even they don't demand such things," said APINDO chairman Suparwanto referring to the decree.

He said that foreign investors too were disturbed by the decree.

According to him, Indonesia is the only country to have a labor policy as irrational as that encapsulated in Decree No. 150.

Unruly workers' actions have been hitting Indonesian industry since the downfall of President Soeharto in 1998. Labor disputes have affected a wide range of industries, including mining, oil and gas, banking, hotels, and manufacturing.

The country's largest oil producer PT Caltex Pacific Indonesia has been embroiled in labor disputes for the last two years with no resolution in sight.

Workers have also taken on giant coal miner PT Kaltim Prima Coal (KPC), and auto manufacturer PT Toyota Astra Motors' main supplier.

Even the Jakarta five star hotel The Shangri-La has not been spared by strikes, prompting management to fire all 500 striking employees.

The industrial representatives have also urged the Minister of Manpower Alhilal Hamdi to resign, saying he was unfit to handle labor issues.

"We need a minister with a firm understanding of labor issues in Indonesia," Suparwanto said.

Hariyadi suspected that Alhilal was more interested in improving the government's image among labor unions.

"A manpower minister should prioritize creating more employment opportunities ... it's not fair if he only pays attention to the people who are already working," Hariyadi said.

KPEN member Adrianto Machribie said that unemployment was nearing 40 million people, and that the figure was growing by 3.5 million each year.

"It would take economic growth of at least 6 percent to 7 percent to absorb these new workers," Adrianto said.

Joint secretary of the Textile, Leather, and Clothing Retailers Association Anton Doni said Korean and Japanese firms were considering employing fewer workers in their projects.

"They (investors) are considering using better technology instead of workers, but we told them such a move would only be helpful in the short term," he said.

Another KPEN member, Anton J. Supit, said that the government was unable to handle the many labor unions that had mushroomed in Indonesia.

While the ILO required governments to allow the creation of labor unions by at least 20 workers, he continued, Indonesia went as far as setting the minimum limit at only 10 workers.

"We now have about 60 different labor unions, but only the SPSI has been given the right to represent workers in the tripartite forum," he claimed.

He said that because of the imbalance, the forum's decisions came under constant pressure from other labor unions and non- governmental organizations.

The tripartite forum, comprising APINDO, the All-Indonesian Workers Union Federation (SPSI), and government officials helps to resolve labor disputes in the country.

He also said the government should tighten strike regulations to prevent minority labor unions from forcing the majority of workers to not pass picket lines.

"There is a difference between demanding one's rights and forcing one's will upon others," he said. (bkm)