Minister pleased over compliance with extra pay rules
Minister pleased over compliance with extra pay rules
By Ridwan M. Sijabat
SURABAYA, East Java (JP): Minister of Manpower Abdul Latief says so far he is pleased with the way companies in the country have observed the new ruling compelling them to pay workers an extra-month salary ahead of the Islamic Idul Fitri holiday.
Latief, who is currently on a nationwide tour to monitor the implementation of the ruling, told reporters on Monday that he was optimistic about the enforcement of the ruling.
"I believe that most companies will comply with the regulation to let their workers celebrate Idul Fitri ," he said.
Latief, a former businessman, late last year made the "13th month" salary, traditionally given ahead of Idul Fitri holiday, compulsory rather than voluntary as has been the case in the past. Employers who violate the ruling could be jailed for up to three months.
In the past, the issue of a "13th month" salary has been a source of conflict between workers and management in a number of companies, often creating ugly scenes near the Idul Fitri holiday.
The minister disclosed that eight companies in Indonesia have applied to be exempted from the ruling, citing financial difficulties.
The first application was rejected after the government checked the firm's books, he said. "We're still auditing the books of the other seven companies," he said, adding that the seven are small companies employing around 20 workers.
Latief's tour on Monday took him to two giant cigarette manufacturers which employ a large number of workers, mostly women. He visited the plants of PT Gudang Garam in Kediri and PT HM Sampoerna, recently declared as one of the nation's largest taxpayers, in Rungkut.
The management of both companies assured the minister that they will grant Idul Fitri bonuses to their workers on time.
The minister, who began his tour in Sumatra, will travel to Central Java on Wednesday and then to West Java and Jakarta on Feb. 25.
Minimum wages
Latief is also using the tour to talk with employers about the 11 to 34 percent increase in the government-set minimum wage levels in all 27 provinces which will become effective on April 1.
Again, he expressed his optimism that all employers will comply. "So far, we've only received one objection from a company in Irian Jaya which asked to have the enforcement postponed."
The Association of Indonesian Textile Entrepreneurs has said that around 70 garment producers could face bankruptcy if they have to increase the wages of their workers in compliance with the minimum wage ruling. The companies however have not formally applied for exemption from the Ministry of Manpower.
Latief dismissed the suggestion that the increase in wages could put a company out of business. "It must have poor management," said the man who built the Sarinah Jaya business empire from scratch.
Asked to comment on the association's complaint, he was quick to answer: "If they have objections, they should report to me."
When news of the association's warning surfaced in the press last week, Latief ordered his office in West Java to ask for a list of garment manufacturers that are reported to be in trouble.
The association could not produce the names, he said.
The minister said he believed that the textile association was making the statement simply to test the government's seriousness in enforcing the minimum wage hikes. (rms)