Workers and employers fail to agree on minimum wage

Workers and employers fail to agree on minimum wage

Andi Hajramurni, The Jakarta Post, Makassar, South Sulawesi

Councillors, labor leaders and businesspeople failed to reach an
agreement here on Thursday over whether to raise minimum wages of
workers in South Sulawesi province next year.

Those present at the meeting with the South Sulawesi
legislative council's Commission E for the economy became
embroiled in a heated debate as they stood by their respective
stances on the issue.

Leaders of labor unions demanded that the provincial minimum
wages (UMP) be increased 100 percent in 2004 from the current Rp
415,000 (US$92) per month.

But local businesspeople grouped in the Indonesian Employers
Association (Apindo) rejected the demand and asked the government
not to raise the wages, arguing that the rise would pose a new
burden on them amid the continuing economic crisis.

Secretary of Apindo South Sulawesi Rahim Zulkifli said the
proposed increase could even force companies to lay off workers,
as they would not be able to afford the new wages.

"We ask that the provincial minimum wages not be increased,
because it is impossible during the current economic situation.
If the 2004 wages are raised, we will surely have to revamp or
lay off workers en masse," he said.

Meanwhile, Rachmawati Karim, coordinator of the May First
Labor Movement (Satu Mei Geram), said next year's minimum wages
should be raised by 100 percent, because the current pay was
"inhumane".

In determining the wages, the relevant authorities should at
least refer to the monthly regional living requirement (KHM),
which had recently been set at Rp 447,160 per month by the
Regional Representatives Council (DPD), she argued.

"The demand for a 100 percent increase in wages is based on
the KHM and the rise in the prices of all basic commodities," she
said.

However, Rachmawati criticized the regional living costs as
"irrational", saying it did not reflect the real minimum cost of
living for workers.

For example, the price of rice -- an item included in the
regional living costs -- was set at Rp 2,225 per kilogram, while
the price on the market was Rp 2,225 per liter, she said.

Also, the price of trousers was set at Rp 7,000 per pair.
"What kind of trousers sells for Rp 7,000 right now? It's
irrational," she added.

Zulkifli further said the demanded wage increase should take
into account several factors, including the fact that many
companies could still not afford to pay their workers at the
current minimum wage.

However, he said if the labor unions insisted on the wage
increase, it should not exceed the national inflation rate of 6
percent.

As the debate continued to heat up, Commission E councillor
Anas Genda eventually closed the meeting without it having
reached any agreement, suggesting further talks later.

Outside the council, around 100 workers from a number of
Makassar companies staged a rally to support the demand for a 100
percent rise in minimum wage next year.