Workers union seeks reforms to prevent unrest

Workers union seeks reforms to prevent unrest

JAKARTA (JP): Indonesia's labor policies must be overhauled to prevent the industrial sector from becoming a source of social and political unrest, a senior union leader said yesterday.

Secretary-general of the only government-sanctioned labor union, the All Indonesian Workers Union (SPSI), Bomer Pasaribu, told a seminar yesterday that the country needed new, more democratic and fairer approaches to labor management.

Pasaribu, who was discussing the issue of minimum wages, said that, especially in view of approaching market liberalization, Indonesia urgently needed to tackle a host of labor problems, including the poor implementation of minimum wage regulations.

"Unless we act, workers will be the victims," said Bomer, who is also a representative of the ruling political group, Golkar, in the House of Representatives.

"The social-political cost (of neglecting workers' welfare), such as we saw in Medan recently...is too high," he said.

In April last year workers protests turned into ethnic rioting in the North Sumatran capital of Medan, leaving one businessman of Chinese descent dead.

"Economic approaches are not enough...we need to harmonize market economics with market democracy in order to improve workers' welfare and increase their productivity," he said.

The one-day seminar on workers' welfare and minimum wages was held by the United Development Party. Other speakers included Gin Soegianto of APINDO, an association of business employers; lawyer Syahniar Mahnida; and Dr. Sayuti Hasibuan of the National Development Planning Board.

Minister of Manpower Abdul Latief, in a speech delivered by his staff expert, Yusuf Shamad, said that the increase in the minimum wage scheduled for April would be equivalent to 107 percent of workers' minimum physical requirements.

On April 1 the minimum wage will be raised by between 10 percent and 35 percent in 19 provinces.

The minimum daily wage in Jakarta will rise by 21 percent, from Rp 3,800 to Rp 4,600. The minimum wage level is set for a six-day or 40-hour working week and is calculated on a 30-day basis. Thus, a worker in Jakarta should take home at least Rp 138,000 per month beginning in April, up from Rp 112,000 at present.

Gin Soegianto said his association was willing to comply with the government's plan, but warned that there would be some negative effects. "Some companies will probably go bankrupt trying to abide by the new regulations...but then, that will create opportunities for other companies," he said.

Legal action

On a separate occasion, the Ministry of Manpower's Director of Industrial Relations Amrinal said 17 more companies have been punished for violating daily minimum wage regulations and failing to pay overtime and annual bonuses.

The 16 companies -- one in Jakarta, two in Bekasi, four in Bandung, two in East Java, five in West Nusa Tenggara and two in North Sumatra -- were fined between Rp 75,000 (US$35) to Rp 750,000 by local courts, while the owner of PT Cikenereng in Lubuk Linggau, South Sumatra, was sentenced to 15 days in prison.

"The companies were tried by the district courts over the last three weeks," he said yesterday.

He said they were among the 96 companies which were taken to court late last year for violating labor regulations. Thirty-two companies were convicted last December and another 37 companies are still being tried.

He warned that the government would take stronger action against any companies that continue to violate regulations in the future.

"The government is serious about enforcing the labor laws and improving legal protection of workers," he said.

Meanwhile, spokesman for the manpower ministry Hermanto R. said that his office foiled an attempt to smuggle 51 workers, mostly women, to Hong Kong via the Juanda airport in Surabaya on Saturday.

The case has been referred to the East Java police for further investigation, he told reporters.

He said the smuggling attempt was foiled by a 10-person team led by Jack Iskandar, secretary to the director general for manpower placement.

"The team found that the 51 workers had no official documents. The two companies, PT SSU and PT TGP, have no licenses to export workers," he said. (swe/rms)