Indonesia sees fewer labor strikes in last six months

Indonesia sees fewer labor strikes in last six months

JAKARTA (JP): The number of labor strikes has fallen
drastically after peaking in January, Minister of Manpower Abdul
Latief announced yesterday.

Indonesia saw a total of 99 strikes in January, 75 in
February, 72 in March, 20 in April, 20 in May, 17 in June and 10
last month, Latief told reporters yesterday after briefing
President Soeharto about the current manpower situation.

He cited the trend as an encouraging sign that industrial
relations are improving in Indonesia.

He said the majority of companies in Indonesia have now
complied with manpower rules, including enforcement of the
minimum wage regulations.

The few recent labor strikes no longer centered on demands to
comply with the rules as these had been met, he said.

Workers are now taking action to press for more than the
"normatives", he said. They are now seeking improvement in
holiday policies, transportation allowances, recreation
facilities and other matters, he added.

The number of labor strikes soared in January and February
when the government hiked the minimum wages in the Jakarta and
West Java areas, two of the country's major industrial centers.

Workers went on strike to press that the companies comply with
the minimum wage regulations. Most subsequently relented when the
government threatened to prosecute those who continued to violate
labor regulations.

The minimum wages in most other provinces were increased in
April. The remaining nine provinces, including North Sumatra, saw
theirs raised as of Aug. 1.

Latief said that 99 percent of all industrial companies in
Indonesia have now complied with the minimum wage regulations.

"We'd like to express our gratitude to the employers," said
Latief, himself a successful businessman before he was recruited
for the cabinet by President Soeharto in March last year.

The minister admitted that the government is still far from
achieving its objectives.

Next target

The next target is to encourage more and more companies to
establish collective labor agreements with their workers. These
pacts regulate the rights and obligations of workers and
employers and are seen as effective tools in preventing
industrial disputes and guaranteeing industrial harmony.

Latief said only 20 percent of companies that employ more than
100 workers have established collective labor agreements. The
government is aiming to bring this to at least 75 percent before
the turn of the century. "We have to work hard to encourage more
collective labor agreements," he conceded.

Asked about the fate of the trade privileges from the United
States which are currently under review pending an improvement in
the labor situation in Indonesia, Latief said Indonesia had taken
the necessary steps.

"Even the U.S. said the steps we've taken were extraordinary.
But the decision is theirs to make, not ours."

Washington is expected to announce its decision on whether or
not to extend the Generalized System of Preferences (GSP) to
Indonesia some time this month.

Last year, the U.S. threatened to revoke the GSP unless
Indonesia improved the conditions of its workers. In February it
decided to extend the review period until Aug. 15.

Officials here expect a favorable ruling when the decision is
made, citing the improvements Indonesia has made and also the
increasing bilateral trade and economic ties between Indonesia
and the United States. (emb)