Govt to protect workers facing dismissal
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)