Govt policies blamed for labor disputes
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)