House to speed up deliberation of two important labor bills

House to speed up deliberation of two important labor bills

JAKARTA (JP): The House of Representatives will speed up the
deliberation of two labor bills in a bid to mend the country's
poor labor conditions and settle the increasing number of
industrial disputes.

Jacob Nuawea, chairman of the House's special committee
deliberating the bills on labor development and protection and on
the settlement of industrial disputes, said discussions of the
bills were scheduled to be completed in three months, which would
allow the bills to be passed into law in April.

"We are determined to complete the deliberations by the end of
March due to the prevalent abuse of workers' rights," he told The
Jakarta Post on Thursday.

He said substantial changes had been made to the two bills by
House Commission VII for social welfare and labor affairs in line
with the aspirations of the country's workers.

Citing an example, he said the bill on the settlement of
industrial disputes set a maximum fine of Rp 50 million
(US$5,263) and a jail sentence of six months for employers who
closed their companies in response to industrial actions, or at
the expense of striking workers whose disputes with their
employers were being mediated or tried in court.

The penalties can also be imposed on employers who dismiss
their workers unilaterally, he added.

To replace the current choices of labor disputes settlement,
the bill suggests four arrangements: bipartite solutions between
employers and workers and/or labor unions, mediation by
government-appointed mediators, arbitration and taking the
dispute to the courts.

"Dispute settlements through bipartite negotiations and the
courts are the most effective and efficient alternatives at
present, because workers and labor unions lack funds to hire
arbitrators and they no longer have confidence in government
mediators who frequently side with employers," Jacob said.

The bill also stipulates that a labor dispute must be settled
within 30 days at the latest, and both workers and employers are
allowed to appeal to the Supreme Court verdicts issued by
arbitrators or district courts.

Jacob, who is also the chairman of the Federation of All-
Indonesian Workers Unions, said the bill on labor development and
protection threatens employers who fail to afford equal treatment
and opportunities to their workers with a maximum fine of Rp 400
million or a four-year jail sentence.

"The bill regulates that workers have the right to receive
labor training, equal pay and equal opportunities to develop
their careers," he said.

Under the bill, owners of labor training institutes that
operate without a license can receive a maximum penalty of a Rp
50 million fine or a six-month jail sentence.

The bill also calls for a maximum punishment of a Rp 200
million fine or a two-year jail sentence for companies illegally
employing expatriates, and a fine of Rp 100 million or a one-year
jail sentence for employers who use child labor or pay their
workers below the minimum monthly wage.

According to Jacob, numerous labor disputes will be settled
and employers will become more aware of the rights of their
workers if the two bills are passed into law.

"The increasing labor rallies over the last three years have
much to do with employers' ignorance of workers rights," he said.
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