Govt warns of sanctions over annual bonuses
Govt warns of sanctions over annual bonuses
JAKARTA (JP): The government will impose administrative and
social sanctions against companies which refuse to pay their
workers Christmas and Idul Fitri bonuses, Minister of Manpower
Bomer Pasaribu said on Tuesday.
However, he said the manpower ministry would not file lawsuits
against companies for violating the ministerial decree on annual
bonuses because the punishment they would incur -- a Rp 100,000
fine -- was "too lenient".
The current Manpower Law threatens a maximum legal fine of
only Rp 100,000 or a three-month jail sentence for companies
which breach the ruling.
"Many companies will prefer being fined Rp 100,000 to paying
the bonus which equals one-month's salary," Bomer said in a
seminar on labor standards here.
The 1997 Ministerial Decree on Holiday Bonuses stipulates
companies are obliged to pay bonuses to their workers, and the
payment has to be made at least seven days before Christmas (for
Christian workers) and before Idul Fitri (for Muslim workers).
He predicted no less than 1.5 million workers will leave
Jakarta for their hometowns to celebrate the post-fasting Idul
Fitri holiday, which is expected to fall on Jan. 9.
Bomer said the government would resort to administrative
sanctions and the blacklisting of errant companies.
"Apart from warnings and blacklists, they will be made public
for not paying the mandatory bonuses," he said.
He said only companies worst affected by the protracted
monetary crisis would be exempted.
"Companies which claim they are facing bankruptcy or remain on
their way to recovery should deliver an official request to delay
the payment of the bonuses. They will be audited to prove they do
not cheat," he said.
No companies have so far requested exemption from the
regulation, according to Bomer.
Bomer warned blacklisted companies would face difficulties in
marketing their products, both at home and overseas. Errant
publicly-listed companies will find obstacles in offering shares
on the local stock market, he added.
He said the public and the press should play their role in
imposing social sanctions against companies which fail to respect
workers' rights.
He said companies which violate the decree three times in a
row for unexplained reasons will be disqualified and their
operation licenses revoked.
"It is the right time for the government to take strict
measures against managements which lack commitment to improving
labor conditions in Indonesia," he said.
He said the government would no longer maintain a cheap labor
policy to lure foreign investors, but will instead encourage
local and foreign investors to respect workers' rights in order
to give their products a competitive advantage both in local and
international markets. (rms)