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)