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