Indonesian Political, Business & Finance News

U.S. makes last minute check on Indonesian labor

| Source: JP

U.S. makes last minute check on Indonesian labor

JAKARTA (JP): The United States is currently making a last
minute check on the condition of Indonesian workers, which is
crucial in deciding whether or not to continue granting trade
privileges to Jakarta.

A team from the U.S. Trade Department has been in Indonesia
this week to meet with representatives of both the official and
the unofficial trade unions as well as human rights
organizations.

The findings of the five-person team, led by Robert Cassidy,
will determine the fate of the Generalized System of Preferences
(GSP) scheme under which a wide range of Indonesian products
qualify for duty free treatment. Some $640 million worth of
Indonesian products, or 14 percent of its total exports to the
U.S., benefit from the scheme annually.

Washington has put Indonesia's GSP status under review over
the past year amidst allegations that Indonesia was denying
workers' rights. It is expected to make its announcement this
month.

On Monday and Tuesday, the team met separately with executives
of the government-backed All Indonesian Workers Union (SPSI), the
Indonesian Legal Aid Foundation (YLBHI) and the rebel Indonesian
Prosperous Labor Union (SBSI).

SBSI has been contesting the government policy of allowing
only the SPSI to represent workers in disputes with their
employers.

SPSI Secretary General Bomer Pasaribu said the team was here
to see improvements in labor conditions in the country.

"All questions posed by the GSP team have been handled
satisfactorily," Bomer said as reported by the Antara news
agency.

He said the GSP team was asking about workers' rights to
organize, the legal protection for workers and the wage system.

Freedom of association is guaranteed by the constitution, he
said. "The workers' right to organize has been well observed
given that there are 13 sectorial unions which are united under
the SPSI banner," he said. "Even the government has issued a
ministerial decree allowing workers to set up labor
organizations, outside of SPSI, at their workplaces."

The government also runs a social security program, the
Jamsostek scheme, to improve workers' welfare and annually
reviews the minimum wage levels, he said.

He pointed out that beginning next year, the minimum wage in
every region of Indonesia will be at least equal to the estimated
cost of minimum physical requirements.

Different picture

The GSP team unsurprisingly received a different picture from
SBSI executives during a meeting at the U.S. embassy on Tuesday.

SBSI Deputy Chairman Rekson Silaban said after the meeting
that the improvements made by the government over the past year
has yet to touch the core of the problem.

Rekson said the workers' right to organize is still being
violated and companies have been laying workers off virtually at
will.

"Regardless of the GSP issue, we've not seen any improvement
in labor conditions," he said.

Rekson was accompanied by SBSI's chief for research and
development A. Simanungkalit and Sunarti, a member of the
executive board, during the meeting at the embassy.

The three also made a case for U.S. intervention to secure the
release of SBSI chairman Muchtar Pakpahan, who has been detained
and charged in connection with a workers' riot in Medan last
April.

"Muchtar had nothing to do with the riots because he was in
Semarang when they occurred," Simanungkalit said.

Meanwhile some 40 SBSI activists yesterday marched to the
Attorney General's office demanding the release of Muchtar, who
is being detained by the police in Medan, North Sumatra.

Their request for an audience with Attorney General Singgih
however was turned down and the protesters dispersed peacefully
after police requested them to leave the office's compound.

Police also confiscated posters and placards from the
protesters which contained demands for improvements in workers'
conditions. (rms/imn)

View JSON | Print