Wed, 02 Apr 1997

Hotline opened for minimum wage problems

JAKARTA (JP): As the new minimum wage came into effect yesterday, the city's chapter of the national workers' union launched a hotline for workers having problems due to the new policy.

Fauzie Ibrahim, local chairman of the All Indonesia Workers Union Federation, said the hotline was primarily intended to help the government enforce the new wage regulation.

Yesterday the monthly wage for a single full-time worker in Greater Jakarta became Rp 172,500 (US$80), from Rp 156,000.

Minister of Manpower Abdul Latief set the 10.7 percent increase for all 27 provinces on Jan. 22.

Fauzie, a member of the Golkar faction said, "workers who have problems with employers about the increased wage should call our hotline 384-6750 or come to our office on Jl. Suryo Pranoto 8, Central Jakarta", he said.

In previous years there have been many strikes because of employers not paying minimum wages. Workers often claim that employers include their transportation and meal allowances in the wage.

There are 22,900 companies in Jakarta.

The head of the Jakarta office of the Ministry of Manpower, Freddy Tuamelly, earlier said four companies had asked to be allowed to postpone the increase.

The ministry considers requests for exemption only if they are received by its office 30 days after the announcement of an increase.

Freddy and Fauzie separately declined to name the companies. Fauzie said they were all from garment and textile producers. Only two requests were allowed.

Fauzie said the other two were rejected based on the results of a public audit.

Meanwhile Deputy Governor for Social Affairs R.S. Museno said he hoped all companies, apart from those exempted, would comply.

"There is no excuse for them not to," he said. The ministry said earlier it would help companies asking for exemption, with management consultancy, rescheduling of existing debts and arranging public audits.

In response to fears of increasing prices as a result of the wage hike, Museno said he thought it would not have significant effect.

Last year 33 companies sought permission to delay the payment of increased minimum wages for a year. This was when the government increased the daily minimum wage in Jakarta from Rp 3,800 to Rp 4,600 per day. (11/anr)