Unions ask for bigger wage rise

Ahmad Junaidi, The Jakarta Post, Jakarta

Labor unions demanded City Governor Sutiyoso on Monday to review its decree on the 2003 provincial minimum wage which rules an increase of 7 percent from the current Rp 590,000 to Rp 631,000 per month.

The unions grouped under the Federation of Metal Industry Worker Unions (FSPMI)'s city chapter, urged Sutiyoso to increase the wage to at least Rp 750,000 a month.

"If the decree was not reviewed, we will go on strike this Ramadhan fasting month," FSPMI's city chapter chairman Mudjiarno said in a meeting at the City Hall.

Mudjiarno was upset with the governor for signing the decree before inviting or listening to the workers' input.

He said the 7 percent increase was too small as the current inflation rate had already reached more than 9 percent while next year's inflation was predicted to exceed 10 percent.

The meeting, which was held by the city manpower Agency and attended by about 100 workers and several employers, aimed to inform the public about the decree.

"With this (small) increase, the administration only listened to the employers' suggestions," Mudjiarno said.

However, the city administration rejected the FSPMI's demand, saying that the decree had been discussed in a tripartite meeting which involved union representatives.

"It was their own internal problem. We have discussed the increase with the union workers," head of the manpower office Bambang told reporters.

He claimed most of the worker unions grouped under the Federation of Indonesian Worker Unions (FSPSI)'s city chapter had already accepted the decree which will take effect in January.

Jakarta has about three million workers and at least 600,000 unemployed people.

Sutiyoso earlier promised to invite worker unions before signing the decree last week. But, he said that wage increases should not be more than 10 percent.

Although the decree was supported by the employers, many believed it would not be effectively applied.

This year, the city administration has approved dozens of companies for not paying according to the official minimum wage due to lack of financial ability.