Minister plays workingman's hero role

Minister plays workingman's hero role

By Ridwan M. Sijabat

JAKARTA (JP): Name a person, or an organization, who has done the most for workers in Indonesia in 1994. With the country's two unions discredited, the All Indonesian Workers Union (SPSI) for its ineffectiveness and the Indonesian Prosperity Trade Union (SBSI) for stirring up a riot, the title as the workingman's hero in 1994 easily goes to Manpower Minister Abdul Latief.

A former businessman, recruited in March 1993 by President Soeharto to handle Indonesia's complex labor affairs, Latief made a number of surprise moves during the year that earned him plaudits from workers but complaints from his former colleagues in the business world.

Barely into his second year on the job, Latief upset many employers when he decided, at short notice, to raise the minimum wages on Jan. 1 in Jakarta and West Java. Many companies which defied his order were hit by workers strikes, but this time they had little help from the authorities because Latief, in the same month, also rescinded a decree that allowed companies to summon the military for help to break a strike.

Rather than faulting the workers, he blamed the management for ignoring the minimum wage level and gave them a February deadline to either comply or face prosecution. Most had complied by the deadline.

Following this, there were no problems when he raised the minimum wage levels in other provinces in April and August. The businessmen knew better than to confront Latief.

Towards the end of the year, Latief had another surprise in stall for the business community. In September, he issued a decree making it compulsory for companies to pay their workers a 13th month salary as a bonus, payable at one of the four great religious days, either Christmas (Christians), Idul Fitri (Moslems), Nyepi (Hindu) or Waisak (Buddhist).

Previously, the practice was encouraged but strictly voluntary. This had been another cause of many strikes in the past as workers pressed for the 13th month salary.

Latief's gesture was welcomed by workers and the unions but again employers complained, saying they were never consulted.

There were other programs Latief initiated during the course of the year, but these examples directly affected the welfare of the workers.

In between his workload, Latief also found time to answer charges that Indonesia was violating workers' rights. His effort appeared to have paid off as the United States deferred its decision on whether or not to end the generalized preference system (GSP) in view of the charges.

In contrast, the country's two unions, the government- recognized All Indonesian Workers Union (SPSI), and the rebel Indonesian Prosperity Trade Union (SBSI) have been quieter in 1994.

SBSI, which continued to defy the government, brought matters to a head-on collision with the government in April. A massive and destructive workers' riot in the North Sumatra city of Medan was attributed to the union and the government moved to round up some of its leaders, including chairman Mochtar Pakpahan.

Mochtar was subsequently jailed for four years for his role in the riot, which left one businessman dead and billions of rupiahs in financial losses.

Although declared illegal, SBSI has been allowed to continue operations, with the government treating the defiant union cautiously, in view of its apparent strong support abroad.

Any attempt to disband the union would surely prompt criticisms from abroad, confirming their suspicion that there is no freedom of association for Indonesian workers. The government's policy on SBSI has been simply to ignore it.

SBSI's efforts to make a real difference for the workers' cause in 1994 failed. A call for a general strike in February went largely unheeded and the massive strike in Medan in April turned into riots.

Non-recognition also made it difficult for SBSI to operate and some of its leaders and members complained of continued harassment by local authorities.

Still SBSI claims to have enlisted 250,000 members across Indonesia as it continues to overshadow SPSI, which had used 1994 largely to consolidate its organization and strengthen its image.

Outwardly, in terms of fighting for the interest of workers, SPSI has hardly done anything noteworthy in 1994.

Inwardly, it was kept busy with consolidating the union after reverting to its old format of a federation in late 1993. Even the 13-sector trade unions under the new federation hardly made the news in 1994.

SPSI has around 10 million members of the over 35 million paid workers and has set up representatives in only 11,000 of the approximately 150,000 companies across the country. But its ineffectiveness in fighting for the cause of its workers is the very reason why SBSI was established and has flourished.

SPSI also received sharp criticisms from government officials, with one even criticizing that the union leaders had acted as if they represented the interests of employers.

Given the condition of the two country's unions, much of the initiatives in terms of improving the workers' welfare in 1994 were taken by Latief.

The minister has already made his move for 1995. He has declared another round of raises in regional minimum wages, beginning in April.