Minimum wage deferrals require workers' consent

Minimum wage deferrals require workers' consent

JAKARTA (JP): The government will consider companies' requests
for postponements in the implementation of the newly increased
minimum wages only if they first solicit their workers' consent,
according to Minister of Manpower Abdul Latief.

Latief said on Saturday his office has approved some requests
and was currently studying others. He did not say how many
companies had requested postponements, or how many had been
approved.

"I'll get the final report (on the companies' requests) out at
the end of this month," he said after attending the celebration
of the 24th anniversary of the Federation of All-Indonesia
Workers Union (FSPSI).

He said the government exempts companies from paying the
minimum wages only under certain special conditions, such as
serious financial difficulties.

About 150,000 companies stated a readiness to raise their
workers' wages starting April 1, 1997 in compliance with the
newly set regional minimum wage level, which was raised by 10
percent from last year. It was reported that 147 companies have
requested postponements, though it was not clear for what
reasons.

Minimum wages, which only apply to the formal sector, are set
by the government. They have been raised every year since their
introduction in 1992, when the average daily minimum wage was Rp
2,000. The newly-set monthly minimum wages are now between Rp
106,500 (US$44, the lowest, for Yogyakarta and Central Sulawesi)
and Rp 235,000 (the highest, for Batam).

Marzuki Achmad, chairman of FSPSI -- the only labor union
recognized by the government -- said the union hoped that this
year fewer companies would be permitted to delay paying the new
regional minimum wage.

Marzuki said that under the current government regulation, a
company would first have to discuss the matter with workers and
convince them that the company is in financial trouble and is
therefore unable to pay the new minimum wage.

"The first step is the discussion between the company's
managers with the company's unit of SPSI, then with the SPSI
local branch, and finally with the SPSI central board.

"Hopefully there'll be no more postponements this year," he
said.

In 1996, 365 out of 44,565 companies applied for a
postponement. Of those who applied, 269 were approved. They
included 203 garment and textile companies, 28 footwear
producers, 11 toy manufacturers and leather companies.

Marzuki also spoke about the controversy surrounding the newly
submitted government-sponsored bill on manpower, said by
opponents to curtail workers' rights if endorsed.

He said his organization had studied the document and had
lobbied members of the House of Representatives to introduce
changes in favor of workers.

Marzuki was commenting on Latief's suggestion that workers
lobby the House in their efforts to have the bill modified.

"We've talked with members of the House's four factions on
about 12 subjects in the bill that we think could harm workers'
rights. The legislators have all agreed to fight for our
aspirations," he said.

Among the controversial elements in the bill are chapters
related to workers' rights to form unions and to hold strikes,
protection for on-duty union leaders, dismissal of workers,
labors working overnight, and protection for women and child
workers.

"We've talked informally with the manpower ministry and
suggested that improvements be made. There have been commitments
(to improvements)," he said. (aan)