Much ado over a decree

Much ado over a decree

As labor unions protest in major cities in Indonesia almost on
a daily basis, to demand the revocation of two controversial
ministerial decrees, it is very easy to lose perspective of what
is at the core of the row. Tensions and emotions are bound to
rise if the government keeps ignoring workers' demands.

Then, it becomes easy for the row to be blurred or to shift
away from the real issues at stake. And in the present political
climate, these labor protests could be exploited by any party to
further its political interests.

Workers unions, like the rest of the nations, are now enjoying
an unprecedented freedom. Inevitably, with their newfound power,
some are flexing their muscles to the point of becoming militant.
In this kind of atmosphere, it is very easy to get carried away,
or even to lose control. Judging by the violent unrest that
accompanied a labor protest in Bandung on Wednesday, our worse
fears may have been realized already.

What is the issue that has consumed the Ministry of Manpower
and Transmigration's, the unions' and the employers' time and
attention this past year, and which has held back the
government's other agendas on the labor front?

The major unions are calling on the government to reinstate
all articles in the manpower minister's Decree No. 150/2000 and
revoke the newer Decree No. 78/2001 and Decree No. 111/2001.

Decree No. 150/2000 regulated the compensation and severance
payments of workers who retired, were fired or voluntarily
resigned. When it was issued last year, the decree was widely
hailed as very generous to workers. But employers, while not
objecting to the entire decree or the spirit of protecting
workers' interests, found some articles problematic. They said
some of the articles discouraged foreign investors.

With Indonesia almost starved of fresh foreign investment
since the end of 1997 because of the prolonged economic crisis,
the government of President Abdurrahman Wahid decided to amend
some of the articles in the 2000 decree. Hence Decree No. 78/2001
was issued last month with eight of the 37 articles revised.

For example, the revised Article 15 allows an employer to
dismiss a worker who was absent because he was participating in
an illegal strike. The revised Article 26 states that an employer
pays only compensation money to workers who voluntarily resign;
previously he was required to pay both compensation and service
money. The revisions essentially addressed the complaints of the
business community, including foreign investors, but the new
decree retains most of the articles and certainly the spirit of
protecting workers' interests found in the 2000 decree.

Decree No. 111/2001, issued in the beginning of this month,
revised only one article, allowing companies to give severance or
compensation payments higher than the amount set in the 2000
decree. No one can say this decree is antilabor.

Unions protesting against the two new decrees have tended to
talk in general terms while avoiding specifics. This "all or
nothing" attitude makes any intelligible discussion to resolve
the issue difficult. The unions could serve the interests of the
workers (not only their members) better by addressing specific
articles they find objectionable. From their statements, for
example, it is clear they reserve their greatest objection to the
new Article 26 in Decree No.78/2001.

Some provincial governments have succumbed to union pressures
and agreed, provisionally at least, to adopt the 2000 decree
pending further resolution of the conflicts. This should be taken
as a goodwill gesture on the part of the regional
administrations. The unions would be mistaken to think they have
won the battle. Sooner or later, these problems should be
addressed and resolved to the satisfaction of workers as well as
employers. The government, the unions and representatives of
employers must return to the negotiating table to resolve
specific problems in the decrees. The sooner the better.

Severance and compensation payments are serious and sensitive
issues that should be resolved, but they are not the only
problems confronting Indonesia today. There are plenty of other
more pressing issues that need addressing, including, in
particular, the high levels of unemployment and underemployment.
These they have not dealt with precisely because the government
and the unions seem to have been bogged down by this one single
controversy over much of the past year.

Creating jobs for those who are out of work or underemployed
are just as important, if not more so, than protecting the
interests of those who do have jobs. Let's not forget the fate of
the 40 million or so adults in this country who have not been
fortunate to have steady jobs and income.