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.