Provinces set minimum wages

Provinces set minimum wages

The Jakarta Post, Jakarta

After Jakarta took similar action earlier, five more provinces
set their own minimum wage on Thursday, while the remaining 24
provinces are expected to follow suit in a few days.

The minimum wage in West Java was raised to a paltry Rp
280,779 per month for the 2002 fiscal year from the current Rp
270,000, while that in Jambi was increased to Rp 304,000 from the
current Rp 255,000.

Central Sulawesi raised the minimum wage a whopping 42.8
percent to Rp 350,000 from the current Rp 245,000 while Southeast
Sulawesi lifted its own by 18 percent to Rp 300,000 from the
current Rp 275,000.

The minimum wage in East Kalimantan rose drastically by 66
percent to Rp 500,000 in 2002 from the current rate of Rp
300,000.

In Bandung, West Java, hundreds of workers grouped in the
Federation of All-Indonesian Workers Union (FSPSI) held a
demonstration at the provincial legislative council building to
protest the governor's decree on the 2002 minimum wage in the
province.

Bambang Wirahyoso, a labor activist, said in a meeting with
the legislative council's Commission E on labor and social
affairs that a majority of workers would not accept the
relatively low pay raise.

"We will organize a massive strike at all businesses in the
province until the government revises the labor decree. It would
be impossible for a single worker to survive the economic
hardship with only Rp 280,000," he claimed.

He added that the new minimum wage was far below the minimum
of Rp 450,000 required for physical needs in the province.

The central government had asserted that the amount of the
minimum wage in the provinces for the 2002 fiscal year must be at
least equal to that of their own minimum physical needs amount.

Bambang said all workers, especially those employed in the
garment and textile sector, could understand the global economy's
bad condition triggered by the devastating terrorist attack of
New York and Washington on Sept. 11, 2001, but employers should
also pay more attention to the poor labor conditions in the
province.

"With the low hike, the provincial government has favored
employers and such a policy could be counterproductive and a
boomerang both to the government and employers," he said.

He cited a recent tripartite meeting with employers and the
provincial government, where his side had proposed an increase to
Rp 500,000.

Bambang, also chairman of FSPSI's textile, leather and garment
union (SPSTK), said workers employed in Bogor and Bekasi would
reject the government decree because their fellow workers
employed in Jakarta would enjoy a hike of 38.7 percent to Rp
591,266 from the current Rp 426,250.

Jakarta was the first provincial administration go ahead with
the increase in the minimum wage.

In Palu, Central Sulawesi, Taufik Tiangso, chief of the
manpower and transmigration office, said the agreement on the
increase in the minimum wage was reached unanimously in a
tripartite meeting on Thursday.

"There will be no change to the tripartite agreement and the
governor's decree is being made and is scheduled to be issued
tomorrow (Friday)," he said.

In resource-rich Samarinda, East Kalimantan, Syachrial, chief
of the local manpower office said both employers and workers had
agreed to raise the minimum wage by 66 percent and the governor
was expected to issue a decree to formalize the agreement on
Friday.

He said the province was seeking to determine its minimum wage
for all sectors, most of which are expected to be higher than the
provincial minimum wage anyway.