Fri, 07 Apr 2000

Workers demand higher minimum wages

JAKARTA (JP) Activists from five worker unions called on the city administration to increase the new regional minimum wage (UMR) of Rp 286,000 (US$38), which they said was insufficient to cover the cost of living in the capital.

The new minimum wage was set in Ministry of Manpower Decree No. 20/1999, which took effect on April 1. The previous monthly minimum wage was Rp 231,000.

"We demand the city administration cancel the new minimum wage and submit a new proposal, and involve workers in its formulation," Mustakim, the coordinator of the some 70 activists, told councillors and officials in a meeting at City Council.

The activists were from the Jakarta chapters of the All- Indonesian Workers Union Federation, the Indonesian Prosperous Labor Union, the Indonesian Metal Workers Union, the Indonesian Muslin Workers Brotherhood and the Coalition of Indonesian Labor Unions.

"We regret Governor Sutiyoso recommended the minimum wage only be raised to Rp 286,000, while the minimum living requirement (KHM) is higher," Mustakim said.

The Ministry of Manpower calculated in 1999 that the KHM for a single worker in Jakarta was Rp 437,873. According to a study by the unions in January and February, this figure was much higher at Rp 758,471.

The activists also deplored that Sutiyoso submitted his recommendation on the new minimum wage without first consulting with workers.

"It's totally unfair for the workers, especially when the government has decided to hike government officials' allowances by between 400 and 2,000 percent. It's discriminative," Mustakim said.

Contacted on Thursday, City Councillor Wasilah Sutrisno of the National Mandate Party (PAN) said a meeting would be held on Friday to discuss the problem.

"The assistant to the city secretary on social welfare affairs, Ritola Tasmaya, has invited the unions and the employers to settle on a new and proper UMR," she said over the phone.

"I have calculated that the minimum wage should be set at between Rp 300,000 and Rp 400,000 to anticipate recent and upcoming rate hikes," she added, referring to plans to raise electricity rates and fuel prices.

Wasilah also said the regional minimum wage for West Java needed to be recalculated.

"We really have to recalculate the wages during the current hardships. However, it's also important that both workers and employers respect each other," she said, suggesting the new minimum wages should cover the workers' cost of living while not unduly burdening employers.

Earlier on Monday, 20 drivers from Radio Taxi Armada, which is partly owned by the city, filed a complaint with city councillors demanding better wages and benefits.

"The company has not given proper wages to the drivers since the company was established during the Jakarta governorship of Ali Sadikin in the seventies," the drivers' coordinator, Nandang R., told the councillors.

"We've never been registered in the workers' social insurance scheme (Jamsostek). Drivers also have no security guarantees during their 18-hour working days," he added.

Nandang also accused the company of unfair working practices. "The management demands we meet our daily target of Rp 100,000, while they never really pay attention to our welfare. The company also fires drivers without any prior warning or evidence."

"The city administration has a share in the company, so it's the responsibility of the city administration and the councillors to improve the drivers' welfare," he said. The city administration owns 28 percent of the company.

The drivers also demanded the company implement a new mutual labor agreement. "We can't guarantee that we will continue to work if our demands are not met," Nanang said.

Councillor Mulyono of the Golkar Party, who sits on the council's Commission E for social welfare affairs, said the commission would convey the drivers' demands to the authorities.

The taxi company is expected to contribute Rp 200 million to the city's revenue in 2000. This would be a 105 percent increase over last year, when the company brought in Rp 97 million for the city. (nvn)