Tue, 17 May 2005

Govt reports fewer labor strikes

Rendi A. Witular, The Jakarta Post, Jakarta

Fewer labor strikes were recorded during the first quarter of this year, indicating that businesspeople and workers might be beginning to better understand their obligations under labor regulations, a report said.

The report, received by The Jakarta Post from the Ministry of Manpower and Transmigration, said there were 23 strikes involving some 11,887 workers in the first quarter of the year, down from 33 strikes involving 14,751 workers in the corresponding period last year.

Working hours lost as a result of strikes fell from about 149 hours in the first quarter of last year to 118 hours in the same period this year.

"Businesspeople and workers are becoming more aware of their obligations. That is why the number of strikes declined," said Musni Tambusai, the director general of industrial relations at the Ministry of Manpower and Transmigration.

Musni said most of the strikes were provoked by non- governmental organizations trying to disturb the operations of a company for political and financial reasons.

According to the report, most of the strikes were fueled by "non-normative" reasons that did not concern the basic needs of workers.

Non-normative reasons here include demands by workers for bonuses and meal and transportation allowances, as well as issues related to bankruptcy, layoffs and work disputes.

The report said only a small number of strikes were driven by "normative" demands related to the basic needs of workers, such as days off, insurance, overtime pay and religious allowances.

The report also underscored the government's concern over non- governmental organizations provoking strikes to further their political or financial interests.

The business community has pointed to worker strikes as one of its major concerns, claiming that strikes have scared off some foreign investors.

Strikes often force companies to halt production, resulting in financial losses and in some cases leaving the companies unable to meet contracts with overseas buyers.

According to the business community, this problem is exacerbated by the relative lack of productivity of local workers, who are often uneducated and unskilled.

Cases of labor strikes

2000 2001 2002 2003 2004 2005*
Cases 273 194 220 161 125 23
Workers 126,045 122,141 97,325 68,114 53,321 11,887
involved
* first quarter

Source: Ministry of Manpower and Transmigration