New team established to enforce wage hikes

New team established to enforce wage hikes

JAKARTA (JP): The government has formed an integrated team to
enforce the new minimum wage regulations in Jakarta and
surrounding areas, a senior official said.

"The team, whose members are from the Ministries of Manpower
and Industry, the Attorney General's Office and the Jakarta
Military Command, was formed to ensure that all employers in the
region comply with the new minimum wage regulations," Director
General for Industrial Relations and Labor Standards, Suwarto,
told The Jakarta Post yesterday.

The government has issued regulations on the increase, by five
percent to 30 percent, in minimum wages, that took into effect as
of April 1, 1995. The minimum wages in Jakarta and West Java are
set at Rp 4,600 (US$2.08) per day, a rise of 21 percent from Rp
3,800 (US$1.72) in the past.

The director general said the region, a home to approximately
65,000 industries, is quite prone to industrial strikes sparked
by labor disputes between management and workers.

"The team will especially monitor the areas of Tangerang,
Bogor, East Jakarta, North Jakarta and Bekasi," he said, citing
that most labor unrests in the past occurred in labor-intensive
companies and those relocated to Indonesia from Korea, Japan and
Taiwan.

A spate of industrial strikes occurred in Jakarta and its
surrounding areas last year when many employers ignored the
government's ruling that they raise the daily minimum wages from
Rp 2,600 to Rp 3,800. Thirty seven companies, violating the
regulations, were brought to court and punished with 15-day
imprisonment and fines ranging from Rp 75,000 to Rp 750,000.

Suwarto said the government would closely monitor the
enforcement of the minimum wage regulations and would take stern
actions against companies found guilty of breaching the
regulations.

"Besides punishments and administrative sanctions, the
government will also blacklist them and announce them and their
products to the public," he said.

He called on workers to report to his office any violations,
in their work place, to help the government ensure enforcement of
the minimum wage regulations.

"My office is open 24 hours a day for workers complaints,"
Suwarto said.

He reiterated that companies, especially labor-intensive
firms, should pay workers above the levels stipulated in the
daily minimum wage regulations to stimulate workers into
improving their productivity and industrial relations.

Suwarto acknowledged that the daily minimum wage levels were
necessary because many companies were still paying their workers
below those set by the government.

"It is saddening that many big companies are still paying
their workers below the daily minimum wages set by the
government," he said. "What was set by the government in the
regulations is the minimum levels employers should comply with."
(rms)