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Labor unions call for minimum wages to meet human needs

| Source: JP

Labor unions call for minimum wages to meet human needs

JAKARTA (JP): Labor unions on Tuesday called on the government
to phase out the monthly minimum wage (UMR) and instead adopt a
new remuneration system based on minimum human needs so as to
improve the welfare of workers.

The All Indonesia Federation of Workers' Unions (FSPSI)
chairman Jacob Nuawea said that the labor alliance has decided to
fight for the implementation of a new and better remuneration
system because the current one was ineffective in improving the
welfare of workers.

"FSPSI is organizing a movement to force both employers and
the government to adopt a remuneration system based on minimum
human needs because with the current system, the worker's lot is
still a poor one," he told The Jakarta Post here on Tuesday.

Jacob was responding to the planned increase by an average of
30 percent in the monthly minimum wages in eight provinces,
including Aceh, North Sumatra, East Kalimantan and West and East
Nusa Tenggara.

He said the determination of minimum wages must be based on
the minimum human needs in the respective provinces.

"The minimum wage in Jakarta and surrounding areas such as
Bekasi and Tangerang must be at least Rp 500,000, enough to cover
minimum human needs in the region," he said, adding that,
realistically speaking, even that amount of money was not
sufficient for a worker in Jakarta to escape economic hardship.

He warned that labor strikes would be rampant in the future if
the government continued "to maintain the current cheap labor
policy".

"We will organize strikes in our work places, and hold
demonstrations at the presidential palace, the House of
Representatives building and governors' offices to protest these
unfair minimum wages," he said.

He explained that the present minimum wages were unfair
because they were based on 12 wage components, instead of the 45
factors contained in the minimum human needs index.

"The 45 components that constitute the minimum human needs
index include not only the calories needed by a worker, better
clothing and light, but also recreation, education, housing and
healthcare," he said.

Separately, Muchtar Pakpahan, chairman of the Indonesian
Prosperous Labor Union (SBSI) concurred and said that both
employers and the government should show their commitment to
improving the welfare of workers and their families.

Pakpahan claimed that employers were actually able to hike
their workers' wages by around 100 percent but that they had
declined to do so because of their profit-oriented mentality and
the absence political will on the part of the government.

He said many SBSI units in provinces had declined to negotiate
increases in the minimum wage because both the government and the
employers had refused to grant increases of above 20 percent.

Achmad Husen Tambunan, chairman of the House's Commission VII
on labor affairs and social welfare, supported the labor unions'
demands for the phasing out of the present minimum wage system
for similar reasons.

"Both the government and employers must forget the UMR system
and promote a better remuneration system so as to rectify the
poor condition of labor in this country," he said.

He added that the UMR system was no longer in line with the
global trend on eradicating labor exploitation and the upcoming
free trade era.

Meanwhile, Djimanto, deputy chairman of the Indonesian
Employers Association (Apindo), said most employers had no
objection to increasing wages by around 100 percent if the
employees concerned possessed the necessary skills.

"Most employers have declined to do so because the majority of
their workers are elementary school graduates and dropouts,"
Djimanto, who was in Bangkok on Tuesday, told The Jakarta Post.

"If they had the skills they wouldn't work in labor intensive
industries".

He pointed out that labor unions should also bear in mind that
the planned hike in minimum wages in the eight provinces was set
with the support of the regional tripartite wage commissions.
(rms)

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