Labor conditions worsening: Union
Ridwan Max Sijabat, The Jakarta Post, Jakarta
Labor unions have blamed the government for the worsening labor conditions in Indonesia, which they say are a result of a bad investment climate, the absence of legal certainty and the high unemployment rate.
The All-Indonesia Workers Union Confederation (KSPSI) said the election of President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla in September last year had not brought change to political and economic conditions or improved labor indicators which weakened following the resignation of former dictator Soeharto in May 1998.
"Labor indicators have been worsening because of the absence of significant changes in the social, political and economic fields over the last seven years. This is evident in the frequent massive dismissals of workers, rampant violations of freedom of association by employers and the high unemployment rate," KSPSI deputy chairman Alboin Sidabutar said on Sunday.
He was speaking on the commemoration of Labor Day, popularly known as May Day, which falls on May 1.
Alboin pointed out that the new government's failure to take short-term measures as a kind of shock therapy to enforce the law, to rid the bureaucracy of corruption and to eliminate the high-cost economy has resulted in little change in the investment climate and a lack of job opportunities.
"President Susilo and Vice President Jusuf Kalla have been in power almost six months, but the political and economic situation is not recovering. There are many foreign investors who wish to come but no actions have been taken to eliminate the high-cost economy.
"Worse still, the government raised fuel prices, weakening workers' purchasing power. Many companies in the forestry, textile and manufacturing sectors collapsed following the fuel increase, causing massive dismissals," he said.
The poor labor indicators, he added, were shown by the labor agreements in companies that gave workers weak bargaining power, the trend in the employment of contract workers for permanent jobs, and the increase in open unemployment to 11.5 million this year from 9.5 million in 2003.
Chairperson of the National Front for the Struggle of Indonesian Workers (FNPBI) Dita Indah Sari, said the government lacked the vision to improve labor conditions as it failed to maintain strategic industries that employ millions of workers.
"The new government has instead given priority to industries that yield maximum revenue," she said.
The government's refusal to help the ailing strategic industries such as aircraft maker PT Dirgantara Indonesia in Bandung, textile firm PT Texmaco in West Java and fertilizer producer PT Pupuk Iskandar Muda in Aceh is a clear example of the government's ignorance, Dita said. Subsequently, the firms suspended tens of thousands of workers.
"The government could do something to salvage the industries. It could reduce its export of liquefied natural gas to Singapore and China to secure the supply for PT PIM so that the fertilizer factory could resume operation. It could also renegotiate its foreign debts with donor countries and international financial institutions to enable it to put aside a part of its funds to salvage Texmaco and PT DI," Dita said.