Minimum wages set for workers abroad

Minimum wages set for workers abroad

JAKARTA (JP): The government has set the minimum monthly wage
for Indonesians working in the formal sectors overseas at US$400
(approximately Rp 850,000).

The monthly minimum wage for unskilled workers such as
domestic helps, has been set at US$250 .

The Ministry of Manpower, in cooperation with the Association
of Manpower Suppliers, established the new minimum wage levels to
improve worker welfare.

Minister Abdul Latief said here yesterday that Indonesia's
skilled workers deserve higher wages due to the advantages they
have over workers from other countries.

"They have work ethics and they are disciplined, persistent,
friendly, honest, patient and committed to their duties," he said
in the opening ceremony of a management training program for
members of the association.

Latief also warned worker-export companies against trading or
swapping licenses with unauthorized labor exporters. He
threatened stiff punishment for any company guilty of violating
labor export regulations.

"You must never sell your licenses or collude with
unauthorized companies and brokers to supply workers abroad," he
told the association members.

The ten-day training program will last through May 12 and is
being held by the Trade and Management Development Institute
(TMDI).

The minister told the manpower suppliers to learn from past
experiences when the government had to revoke the licenses of
various delinquent companies.

He lashed out at several certified labor-export companies,
which, he accused, allowed unauthorized companies to use their
names to send workers overseas.

"The ministry will immediately issue the final warning and
mete out administrative punishment," he threatened.

Labor-export companies play a great role in helping the
government deal with the increasing unemployment rate, Latief
said, adding that they are also important foreign exchange
earners. As a result, the government is committed to creating
favorable conditions for them, he said.

He promised a number of facilities for labor-export managers,
including an expansion of their market to other countries and
training programs for their workers.

Among the first steps that the ministry plans to take is a
market research study of prospective markets in Hong Kong,
Taiwan, the United States, Canada and European countries, he
said.

He reminded the labor exporters that their businesses now face
stiff competition from other Asian countries such as the
Philippines, Vietnam, Sri Lanka, Bangladesh and China. These
countries are known for their aggressive expansion into the labor
markets of many countries.

"This condition calls for better preparation and better
quality workers, which is why we have to develop suitable
training programs for our workers, " he said.

Latief also called on labor exporters to prevent unfair
competition and a "rates war" among themselves.

Every company must comply with the common agreement on
recruitment fees and monthly minimum wages, he said. (rms)