Minimum wage a problem: Bosses

Minimum wage a problem: Bosses

JAKARTA (JP): Many private companies will face difficulties in
implementing the new increase of workers' minimum wage as
proposed recently by the All Indonesian Workers Union (SPSI),
chairman of the Association of the Indonesian Employers said here
yesterday.

"The minimum wage increases during the last two years have
been so burdensome for the employers that many of them had to
postpone it," said Suratno Hadisuwito, the chairman.

Speaking to reporters after a meeting with officials of the
Ministry of Manpower and representatives of SPSI, about the
Union's proposal, he stressed the importance of taking into
consideration the companies' ability to implement the new wage
increase as put forward by SPSI in its proposal.

SPSI announced recently it would propose an increase of
between 10 to 20 percent in minimum wage this year for all
provinces.

Suratno said that the government met 60 percent of workers'
minimum physical needs in 1993 and surpassed it up to 108 percent
last year.

"Current minimum wages, however, meet only 88 percent of the
workers' growing aspirations," he said.

Wilhelmus Bhoka, a SPSI member, told reporters that the
minimum wage would not meet the workers growing aspirations
before 1998 if the current wage is increased by 16 to 17 this
year and the same percentage next year.

Bhoka said the failure to meet the workers' growing
aspirations has been made worse by the 10 percent annual
inflation in the past. (03)