Minimum pay must be maintained

Minimum pay must be maintained

From Merdeka

Reports in the media say that the Indonesian Textile Association (API) has appealed to the government to review its policy on minimum regional wages on the grounds that it will cause an increase in total textile company costs. Some 123 garment enterprises located in Jakarta, West Java and Central Java have expressed their concern with the new pay policy. API Secretary General Benny Soetrisno was quoted by the press as saying "many garment companies will have to close down."

However, the Societal Study and Advocacy Institute (Elsam) views API's appeal as completely unfounded, and asks the government to reject the proposal and consistently implement the pay increase which will take effect on April 1, 1995.

Some of our reasons are as follows:

* The minimum pay regulation is aimed at improving the welfare and living standards of the workers, and to satisfy their minimum basic needs.

* The minimum pay regulation is still far from adequate to meet basic needs. The government still has to raise the minimum pay level by 15 percent to reach the "ideal" level of basic living needs.

* As a matter of fact, in determining the minimum pay scale, the government has considered the companies and their interests as well as conditions. The Minister of Manpower said that the minimum pay increase will only cause production costs to go up by one percent. It is the best compromise that can be reached with the business. It is not in any way ideal for the workers.

* Should the government need to re-audit the companies' financial state of affairs, we want a workers' representative to be involved in the auditing process. So far, the companies are not open to this idea when it comes to auditing activities.

ABDUL HAKIM GARUDA NUSANTARA

Executive Director

Elsam, Jakarta