Union seeking Rp 5,000 daily minimum wage
JAKARTA (JP): The Jakarta branch of the All Indonesian Workers Union is campaigning to increase the daily minimum wage from Rp 3,800 (US$1.38) currently to Rp 5,000.
The union chairman, Salam Sumangat, told The Jakarta Post here yesterday that the union would like to see the new minimum wage implemented by 1995.
"I will continue the campaign so that the minimum wage can match the minimum physical requirements of a bachelor," said Salam, who is also a member of the City Council.
The regional minimum wage for the greater Jakarta area was increased in January from Rp 3,000 to Rp 3,800. Many observers contend that this is not high enough since the 26 percent raise still falls short of a bachelor's minimum physical requirement of Rp 140,000 per month.
More importantly Salam revealed that the Union is fighting to ensure that workers get special transportation and food allowances because the current wage system covers only the basic salary.
"Businesses in Jakarta tend to include the two allowances as part of the minimum wage," he explained.
Salam, who is also a member of the City Council's Commission E on social welfare, was confident the over 24,000 businesses located in the greater Jakarta area would have no problems in bearing the added cost.
We are not talking about percentages here but we're talking in terms of a very small few who can't afford it, he said.
Periodic hike
Elaborating further on the proposals of the national union's Jakarta branch for the additional wage increase, Salam said it was planning to introduce a periodic raise based on the work tenure of workers.
So, apart from the minimum wage, those who have been working longer will get an extra bonus based on how long they have been working at a company, Salam said.
Commenting on the treatment of workers, Salam blasted the large number of companies which have failed to institute an equitable distribution of profit.
During a recent meeting of the International Labor Organization (ILO) in Geneva, Salam discovered that based on the 1990 World Bank report, businessmen in the Jabotabek (Jakarta, Bogor, Tangerang and Bekasi) area grab 80 percent of the value added profits.
"Companies tell their workers to increase productivity yet they only receive 20 percent of the earnings," he said.
According to the World Bank, Indonesia's record is far worse than its closest neighbors, such as Malaysia and Singapore, who already provide over 20 percent of their profits to their workers.
Salam went on to claim that of the 7,800 companies in the greater Jakarta area who employ at least 25 workers, most were distributing only a small portion of their profits to their workers. (mds)