Speaking out about uncertainty over bonuses

Speaking out about uncertainty over bonuses

JAKARTA (JP): "It's the thought that counts" is a welcome
cliche nowadays. As the economic crunch bites deep into firms'
coffers, a simple card may have to suffice instead of pricey
Christmas and New Year's gifts for the long list of business
contacts.

Many employers say this is better than having to tell grim-
faced workers of delayed or canceled bonuses, wage cuts or no
wage increase despite the mandatory minimum regional wage hike.
Their predicament is doubled as the Islamic post-fasting holiday,
Idul Fitri, will fall at the end of January.

Employers, employees and industry figures share their concerns
about what may not be a very merry holiday season after all.

Anton J. Supit, chairman of the Indonesian Footwear
Association (Asprindo):

The shoe sector is very vulnerable to the U.S. dollar exchange
rate because of its high import content. Our companies have to
import about 60 percent of their raw materials.

I understand that employees need the (Idul Fitri) allowances
very badly. But... I think there will be a number of companies
that will ask permission (from the Ministry of Manpower to defer
or be exempt from payments). The association can... only try to
persuade the companies not to do this.

I think we have more than 1,000 companies -- small, medium and
large ones, mostly in Bogor, Tangerang, and Bekasi in West Java
and in Surabaya, East Java -- with more than 500,000 workers.

But despite the gloomy conditions, we must maintain our
optimism and try to improve our business.

Indrasari Tjandraningsih, researcher at Bandung-based Akatiga
study center on land, labor and the small-scale economy:

It is a good thing already if companies do not lay off their
workers... I do not see the possibility of a wage increase.

The condition is tense; on the surface things are relatively
quiet, but perhaps families and severance payments are still
sustaining laid-off workers. At least 100,000 workers have lost
jobs in the labor-intensive plants in West Java alone. Then there
are the thousands of migrant workers who returned from the Middle
East... where will they seek employment?

Women are the hardest hit because they make up the most
workers in the plants and among those migrants.

West Java's textile industry has 200 to 9,000 workers in each
plant.

And the crisis has become a convenient means to lay off
workers for companies which have long wanted to reduce personnel.
A group of workers went to the Legal Aid Office in Bandung to ask
assistance in suing their employer -- whom they alleged dismissed
them without permission of the Ministry of Manpower -- as it
seemed the authorities could do nothing against the action.

Bambang Trihatmodjo, chairman of Bimantara Group and APAC Inti
Corpora, formerly Kanindo, a textile company in Bawen, Semarang,
Central Java, which has 10,000 workers:

If the monetary crisis continues, many companies will collapse
because they will not be able to repay their loans.

Businessmen should evaluate and curtail unnecessary spending,
and seek efficiency in all sectors. In short, we must not obral-
obralan (spend recklessly).

Up to now, Kanindo survives and will pay all of its workers'
rights in salaries and everything else.

But... increasing salaries is very difficult. Should we
choose increasing wages and let many companies go bankrupt, or
maintain current wage levels?

I'm sure the government can solve the crisis, and that it will
end soon.

Netty A. B. Ryanto, honorary chairwoman, Association of
Indonesian Women Employers:

If cutting salaries at the managerial level is the best
choice, why not? ...We can't send workers home... there is no
place they could be absorbed.

The easiest spending to cut is promotions. But cutting
operational costs is difficult... Despite all efforts at
efficiency, we still think it is difficult to increase the
regional minimum wage.

My business in the health sector has yet to be affected. But
we have noticed that people suffering from a cold won't go to the
doctor now.

Subanu Dwi Seputra, 29, owner of PT Putra Antara, a book
distributor:

I have already given out bonuses for my 20 employees for
Christmas, New Year's and Idul Fitri.

I have stopped using my cellular phone and I don't use the
company car anymore.

I can't just dismiss two or three employees, but I'm thinking
hard about how to use the manpower we have for better efficiency.

Fortunately, most of the employees are students working part-
time.

Suryanto B. Santoso, a staff member of a publicly listed
property firm:

I don't expect my company will increase salaries or pay annual
bonuses, although I need these badly to compensate for the
decreasing value of my salary in dollar terms. I heard from a
director that the company had difficulty in managing its
liquidity. I don't know exactly what's happening... perhaps it
has many unhedged debts in dollars. Well, it is good that I know
about the situation beforehand so I will not be disappointed or
surprised if the company decides not to increase salaries. (team)