Minimum wage under dispute

Minimum wage under dispute

YOGYAKARTA: The provincial authorities and representatives of
employers and workers unions failed on Wednesday to approve the
minimum monthly wage for 2003.

The Yogyakarta governor has proposed that the minimum salary
be increased to Rp 365,500 (US$40) from Rp 321,250. The new
salary ceiling offered by the governor is in line with workers
unions, which are demanding that the new wage be no less than Rp
360,000.

Employers have agreed that the salary be increased, but should
not exceed Rp 350,000, citing the slow economic growth forecast
for next year.

"The Bali bombing has adversely affected the economy in
Yogyakarta. The rising inflation rate will weaken employers'
capability to pay salaries," said Jadin Jamaluddin of the
association of textile companies.

Jadin added that the economic slump had sparked the planned
dismissal of 200 textile workers in January next year.

Participants of the meeting, which was presided over by Deputy
Governor Paku Alam VIII, agreed to bring the matter back to the
governor. -- JP