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)