Govt to protect workers facing dismissal

JAKARTA (JP): The government promised yesterday to protect workers facing dismissal by companies affected by the economic crisis.

Minister of Manpower Abdul Latief told a hearing of House Commission V for manpower and trade that employers could not arbitrarily fire workers for any reason, including the monetary turmoil affecting their companies.

"Such a dismissal is not allowed. That's the rule, that's all... We will stick to the law (Manpower Law), because we don't want workers to suffer losses caused by the economic difficulties," Latief said.

He was commenting on requests to dismiss 10,000 workers by 50 private companies, and the possible layoffs of 6,000 employees of 16 recently dissolved banks.

Latief said the government would study the companies' requests to dismiss workers.

He said the protection of the workers' rights would be given top priority.

"We will take a look at individual requests, including how far the companies can survive the economic downturn. Of course, we hope the situation will not adversely affect workers," he said.

1995 statistics show some 6.3 million people, or 7.24 percent of the country's 86.4 million-strong workforce, were unemployed. The figure was 2.3 million higher than in 1990.

Latief said agreements had been reached with workers unions by most of the 50 companies seeking permits to dismiss their employees.

"They have negotiated their plans with units of the trade union in their respective companies. Many of the companies have met the union's demands, and some even offer better compromises," he said.

Despite the government's assurance, around 600 employees of 21 branches of six liquidated banks in Medan have reportedly received their marching orders.

The head of North Sumatra's Manpower Office, I.G.B. Soewida, revealed this Monday.

He said his office was studying the impact of the bank closures on local companies that deposited with liquidated banks.

Bargain

Separately, labor activist Teten Masduki said the possibility of massive layoffs due to dire economic conditions would indirectly affect workers' bargaining power.

"Bargaining positions will be weaker since the oversupply will mean thousands of new job seekers (compared) to the (limited vacancies) at companies," Teten Masduki of the Foundation of the Indonesian Legal Aid Institute told The Jakarta Post yesterday.

Teten, head of the foundation's labor division, expressed concern that higher unemployment could lead to social unrest.

"Higher unemployment could trigger social problems such as an increasing in crime and even ... political unrest," he said.

He said the economic crisis could also negatively impact on employees welfare and working conditions in Indonesia.

"In this crisis situation, it is unlikely that companies will improve workers welfare and working conditions," he said.

Therefore, Teten said, there was only a slim possibility that the government would increase soon the regional minimum wage which is Rp 5,700 per day. (10/21/amd)