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)