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)