Wage up by 38.7% for Jakarta in 2002
Wage up by 38.7% for Jakarta in 2002
Emmy Fitri, The Jakarta Post, Jakarta
The Jakarta tripartite wages committee has agreed to recommend
a 38.7 percent increase in the minimum wage for workers in
Jakarta and the Greater Jakarta area in 2002, marking an increase
from the current minimum wage of Rp 426,250 to Rp 591,266.
The Secretary General of the Reformed All-Indonesia Workers
Federation (SPSI Reformasi) H.M. Rodja said the recommendation
was a 2002 New Year's gift from workers to employers.
He said that it (the wage raise) was akin to a gift from
workers as they deserved to get a much higher raise even though
they had not demanded it.
"It's a gift but not entirely without strings. We need them
(employers) to in return help us create what we call harmonious
industrial relations between employees and employers," Rodja
added.
"Although I agree with the recommendation, I have to say that
the figure is still far from enough if we take the inflation
rate, the basic needs of workers, and the soaring prices of basic
staples and consumer goods into account," Rodja told The Jakarta
Post on the sidelines of a discussion on labor and the media on
Tuesday.
The tripartite committee consists of representatives from
labor unions, employers and officials from the Ministry of
Manpower.
Previously, such standardized wage rises were known as
regional minimum wages, or UMR (Upah Minimum Regional), and were
determined solely by the Ministry of Manpower.
Due to the implementation of regional autonomy in January, the
central government has lost its power to determine minimum wages
and instead they are set by the provincial tripartite wages
committees in the provinces and then approved by the respective
governors.
The Jakarta tripartite committee's recommendation will be
presented to the Jakarta administration on Wednesday. "We want
the government and the employers to see that this represents an
act of self-restraint on the part of workers as we understand the
difficulties presented by the current economic crisis," Rodja
said.
Meanwhile, an employer who was close to the process of
drafting the recommendation but refused to be identified, said
that the planned increase in the minimum wage was not final as
employers and the labor unions were still divided over the issue.
The source said employers had only agreed to raise the minimum
wage by up to a maximum of 15 percent, while the labor unions
were asking for more than 20 percent.
"A 15 percent increase is already hard for us. You can imagine
if they ask for more than 20 percent. I'd rather not comment on
that," he said.
When asked about the plan to bring the recommendation before
the Jakarta administration on Wednesday, he said, "We'll see, the
government is not blind. They (the administration) too have their
own calculations which will give a win-win solution for employers
and workers, and recognize that we are all in trouble because of
this economic crisis."
The provincial minimum wage is valid only for new employees
and workers with zero work experience, while other workers
already employed in firms are paid above the minimum wage level.