Indonesian Political, Business & Finance News

Govt reports fewer labor strikes

| Source: JP

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

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