House settles issue on workers' dismissal in labor bill
House settles issue on workers' dismissal in labor bill
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The House of Representatives has finally settled the issue of
dismissal, the most controversial issue in the bill on workers'
protection, paving the way for its endorsement on Tuesday.
Rekso Ageng Herman, a member of the House' special committee
deliberating the bill, told The Jakarta Post here on Sunday both
commission members and the government had agreed not to pay
compensation for workers entering retirement and for those who
were dismissed for committing crimes.
"With the completion of the deliberation of contentious
issues, our commission will bring the bill to the House's plenary
session for endorsement on Tuesday," he said.
Rekso explained that employers had no obligation to pay
severance payment nor payment according to the length of service
of an employee to workers who were dismissed for committing a
crime. He said it was not appropriate to pay compensation for
those who through their very actions had tarnished the company's
image and were serving a prison sentence.
Regarding workers who resigned voluntarily, Rekso said as with
workers dismissed for committing crimes, both resigning and
retiring workers only had the right to receive what was due to
them during their period of employment.
The agreement on the controversial issue ended employers'
long-standing objection to Ministerial Decree No. 150/2000
requiring compensation for retiring workers and those dismissed
for committing crimes.
Previously, the special committee and the government
represented by manpower minister Jacob Nuwa Wea, agreed to define
the type of work that could be handed over to contractual
workers, sabbatical leave, lockout and 18-months leave for women
who miscarry. The bill on labor protection had more than 60
contentious issues that were settled following a marathon
discussion that involved both labor unions and employers in Dec.
2002 and Jan. 2003.
This bill and the other one on the settlement of labor
disputes were reviewed after being stalled following strong
protests both from labor unions and employers.
Meanwhile, numerous minor labor unions lambasted larger labor
unions supporting the two bills as hundreds of workers and
activists demonstrated at Hotel Indonesia traffic circle on
Sunday to oppose the two bills.
But, Muhammad Rodja, secretary-general of the reformed All-
Indonesia Workers Union (SPSI), hailed the special committee's
agreement, saying it would give certainty both to workers and
employers on industrial relations and settlement of labor
disputes.
Rekso said that despite the minor unions' protest, the House
would endorse the long-awaited bills on Tuesday.
The two bills will replace Law. 22/1957 on settlement of labor
disputes and Law No. 25/1997 on the workforce which was made
during the New Order era. The latter law was rejected by workers
in the reform era, because, in their view it negated workers'
fundamental rights.
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The House of Representatives has finally settled the issue of
dismissal, the most controversial issue in the bill on workers'
protection, paving the way for its endorsement on Tuesday.
Rekso Ageng Herman, a member of the House' special committee
deliberating the bill, told The Jakarta Post here on Sunday both
commission members and the government had agreed not to pay
compensation for workers entering retirement and for those who
were dismissed for committing crimes.
"With the completion of the deliberation of contentious
issues, our commission will bring the bill to the House's plenary
session for endorsement on Tuesday," he said.
Rekso explained that employers had no obligation to pay
severance payment nor payment according to the length of service
of an employee to workers who were dismissed for committing a
crime. He said it was not appropriate to pay compensation for
those who through their very actions had tarnished the company's
image and were serving a prison sentence.
Regarding workers who resigned voluntarily, Rekso said as with
workers dismissed for committing crimes, both resigning and
retiring workers only had the right to receive what was due to
them during their period of employment.
The agreement on the controversial issue ended employers'
long-standing objection to Ministerial Decree No. 150/2000
requiring compensation for retiring workers and those dismissed
for committing crimes.
Previously, the special committee and the government
represented by manpower minister Jacob Nuwa Wea, agreed to define
the type of work that could be handed over to contractual
workers, sabbatical leave, lockout and 18-months leave for women
who miscarry. The bill on labor protection had more than 60
contentious issues that were settled following a marathon
discussion that involved both labor unions and employers in Dec.
2002 and Jan. 2003.
This bill and the other one on the settlement of labor
disputes were reviewed after being stalled following strong
protests both from labor unions and employers.
Meanwhile, numerous minor labor unions lambasted larger labor
unions supporting the two bills as hundreds of workers and
activists demonstrated at Hotel Indonesia traffic circle on
Sunday to oppose the two bills.
But, Muhammad Rodja, secretary-general of the reformed All-
Indonesia Workers Union (SPSI), hailed the special committee's
agreement, saying it would give certainty both to workers and
employers on industrial relations and settlement of labor
disputes.
Rekso said that despite the minor unions' protest, the House
would endorse the long-awaited bills on Tuesday.
The two bills will replace Law. 22/1957 on settlement of labor
disputes and Law No. 25/1997 on the workforce which was made
during the New Order era. The latter law was rejected by workers
in the reform era, because, in their view it negated workers'
fundamental rights.