Pro-labor decree remains effective, says Nuwa Wea

Pro-labor decree remains effective, says Nuwa Wea

JAKARTA (JP): The pro-labor Ministerial Decree No. 150/2000 on
severance and service payments for dismissed and retiring workers
remains effective until a tripartite solution to the much-
criticized Decree No. 78/2001 is reached, says newly appointed
Minister of Manpower and Transmigration Jacob Nuwa Wea.

"Employers are obliged to comply with Decree No. 150/2000,
which has also been accepted in Central and East Java and Bali,
until a national tripartite institution representing employers,
the government and workers is set up to seek a fair solution to
the prolonged problem of severance and service payments for
retiring workers and those who are dismissed for major violations
and crimes," Jacob told The Jakarta Post at the Ministry of
Manpower and Transmigration here on Friday, prior to the
inauguration of the new Cabinet

Nuwa Wea said he would hold a meeting with labor unions and
the Indonesian Employers Association (Apindo) on Monday to make
preliminary preparations for discussing the fate of Decrees No.
78 and No. 111/2001 that require employers to provide only
compensation, instead of severance and service payments, for
retiring workers and those who are fired for major violations.

He said he would lobby Apindo and local investors to accept
the 2000 decree so as to help improve workers' protection in the
future.

The 2000 decree stipulates that employers are obliged to
provide severance payment for dismissed workers, including those
who are fired for major violations and crimes, as well as service
payments for resigning and retiring workers. It also specifies
the amount of the severance and service payments based on the
length of the particular worker's employment.

The latter two decrees were issued in June 2001 after protests
by local and foreign investors against the pro-labor decree, and
led to demonstrations and a number of violent labor rallies in
East and West Java last month. So far, no tripartite solution to
the problem of the controversial decrees has been achieved.

Nuwa Wea, also chairman of the Federation of All Indonesian
Workers' Unions and a legislator with the Indonesian Democratic
Party of Struggle (PDI Perjuangan), said he did not know the
political reason why President Megawati Soekarnoputri appointed
him as the manpower and transmigration minister, but pledged that
he would work hard to help repair the current poor labor
relations.

Meanwhile, the new labor minister's statement has raised a
protest from the Association of Indonesian Footwear Companies
(Apresindo) and the Indonesian Employers' Association (Apindo)
who warned that it could affect industrial relations and
discourage foreign investors from putting their money in
Indonesia.

Anthon J. Supit, chairman of Apresindo, whose members are
labor-intensive footwear factories, expressed his disappointment
with the new minister's policy, saying it went against the
previous tripartite agreement made between labor unions, the
government and employers.

"Following his appointment as the manpower and transmigration
minister, he (Nuwa Wea) is no longer a labor activist and,
therefore, he should be wiser and make policies in the broader
national interest," he said.

He warned that Nuwa Wea's statement might have deep
repercussions, and that it could be cited by labor unions and
workers when facing dismissal or retiring.

According to Anthon, many Japanese and Taiwanese investors
have chosen the Philippines over Indonesia for investment because
of the recent political instability and the country's
contradictory labor laws.

Separately, Apindo's deputy chairman Djimanto questioned Nuwa
Wea's statement which he said could have a negative impact on
future investment.

"Nuwa Wea should not think that the law is his responsibility
alone. He should first consult with the President and the other
relevant ministers before making a new policy," he said.

With the new policy, he said, employers would be forced to set
aside fresh or reserve funds in anticipation of resigning and
retiring workers. They would also have to bear a financial burden
whenever they had to fire those who had committed major
violations or crimes.

He added Apindo was ready for negotiations with the
governments and labor unions to seek a fair and peaceful solution
to the issue of severance and service payments. (rms)