Sat, 28 May 1994

Mulya says businesses prospering at expense of labor

JAKARTA (JP): Leading human rights lawyer Todung Mulya Lubis is calling for a major overhaul of Indonesia's labor laws, accusing the present legislation of repressing workers.

Mulya charged that the law has been abused by government and businesses as a tool to control labor. He spoke at a government seminar on that nation's labor laws.

"Many laws are undemocratic, repressive and pro-business and investment," he said.

He cited the 1964 law on dismissal which empowers management to sack employees while providing no protection against wrongful dismissal.

He also pointed out that while the government's January decision to repeal a decree allowing for military intervention in labor disputes was welcome, it has made no impact on labor relations in reality, with the military continuing to meddle.

Mulya said these and other examples of government coddling of management at the expense of labor reflect a failure to live up to the spirit of the 1945 Constitution.

Government officials and legal experts on the first day of the seminar on Thursday acknowledged that many of the present labor woes in Indonesia have their roots in weak legislation.

Mulya said that to remedy the situation, Indonesia needs nothing less than a complete overhaul of its labor legislation, and that a considerable government commitment to change will have to be made if this is to happen.

He said that despite ratifying the International Labor Organization's convention on the right to organize, the government has refused to recognize any union but the All Indonesian Workers Union (SPSI).

"I'm not a supporter of SBSI, but I want the government to exercise a democratic system consistently," he said referring to the Indonesian Prosperous Labor Union, which has been challenging SPSI's monopoly on organized labor.

Mulya said the government should also quickly revise the minimum wages so that they meet the basic needs of workers.

The present level of Rp 3,800 a day for Jakarta barely covers basic needs and this has been the cause of some recent strikes, he said.

He also warned the government and businesses, especially large corporations, that workers are becoming more assertive and are not blind to the situation of the companies they work for.

"Large companies such as the Salim Group, Astra Group and Sinar Mas Group should be able to pay their workers above the minimum wage levels," he said.

The government should also move to eliminate red tape, because this often amounts to costs that eat companies profits. This was often cited as one reason why companies could not pay their workers more, he said.

"Employers will certainly be incapable of raising their labor costs if they are always forced to pay unofficial levies to the authorities and to help finance political campaigns," he said.

He said collusion between employers and the bureaucracy will continue as long as the government shows no commitment to fight it. (rms)