Indonesian Political, Business & Finance News

Shadow of suspicion

Shadow of suspicion

The manpower bill has finally been endorsed into by the House of Representatives, amid pressure from labor activists.

The bill's endorsement is an achievement for Minister of Manpower and Transmigration Jacob Nuwa Wea, because three previous manpower ministers had failed to get the bill passed.

The question concerning the law, however, is not which parties endorsed it. Rather, the question is about the law's substance and its future implications for the Indonesian people, both employees and employers.

The law's articles do not side with workers, especially in cases of companies that are closing down, strikes, layoffs, severance pay and outsourcing workers.

The House took a long time to discuss the articles on severance pay for fired employees. The debate on this issue became so heated that a 30-minute break was necessary during the meeting to give the House special committee that drafted the bill time to hear again the opinions of all concerned parties.

The final results of the law, however, failed to satisfy all parties. Both workers and employers feel that some of their interests were not accommodated by the new law.

And both sides are upset with Jacob Nuwa Wea. Some employers are suspicious of the minister, who is also an official in the ruling Indonesian Democratic Party of Struggle (PDI Perjuangan) and a former official of a labor federation.

They have accused Jacob of abusing an agreement between the association of employers and association of workers. The employers believe Jacob sided with employees, while the workers have accused him of betraying them.

-- Bisnis Indonesia

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