Over 3,000 firms break labor laws

Over 3,000 firms break labor laws

JAKARTA (JP): Over 3,800 companies in Indonesia were found to
be in violation of various labor laws, the Ministry of Manpower
said.

Ministry chief spokesman Fachri Taharuddin said a team
investigated more than 9,000 companies in the last three months
and found that 3,810 were breaking labor laws.

Most have been let off with a stern warning but 32 will be
prosecuted, Fachri said.

The most often violated rules are the ones on minimum wages
and the failure to pay overtime, he added.

The current labor legislation sets a maximum three months
imprisonment and a fine of Rp 100,000.

The Ministry of Manpower acknowledged the penalties are not
severe enough to deter violations and is currently working on a
new labor legislation with stiffer penalties.

Fachri said the investigation also found that the majority of
140,000 registered companies in Indonesia have not signed a
collective labor agreement with their workers. And only 10
percent of the companies have allowed the All Indonesian Workers
Union to set up representatives. (rms)