GOVT EVENTUALLY REVISES DECREE ON MINIMUM WAGES

By Andi Abdussalam

 

Jakarta, Nov 28 (ANTARA) - After a series of protests by workers, the government eventually decided to revise a controversial article in a joint ministerial (SKB) decree on laborer's provincial minimum wages (UMR).

        "The revision is expected to eliminate misunderstanding by a number of parties about the provision on minimum wages in the decree," Manpower and Transmigration Minister Erman Suparno said.

        Article 3 of the decree initially put a clause: "Governors should fix a provincial minimum wage at a rate not exceeding national economic growth rate."

        Now the clause is revised to read: "Governors should take into considerations the inflation rates in their respective regions when they decide rate of the provincial minimum wage."

        The joint ministerial decree by the ministers of manpower, of trade, of industry and of home affairs was issued recently in an effort to anticipate the impact of global financial crisis.

        "The decree was issued as a safety net and as protection for workers from the possibility of massive layoffs as a result of the global economic crisis," Erman Suparno said.

        Article 1 of the decree stipulated that if a business sector was badly affected by the global economic crisis, the Wage Affairs Council and the regional administrations were given rooms to re-negotiate the regional minimum wage rate.

        "This provision will be applied in an emergency situation. So, a decision must be made by involving both the managements and workers. It is a bipartite meeting," he said.

        However the decree has sparked a series of demonstrations by workers alleging that it was issued to protect employers.

        Chairman of the Indonesian National Workers Struggle Front (FNPBI), Dominggus Oktavianus, alleged that the issuance of the SKB was equal to shifting companies' financial burden to workers.

        The SKB also stipulated that UMRs were to be determined in negotiations in bipartite forums involving only representatives of the government and employers.

        The negotiation process in bipartite forums had the potential to set the UMR based on the market mechanism which meant that workers and their families would not be able to meet their daily needs.

        The minister said that article 3 of the ministerial decree was often misunderstood as if companies were prohibited from raising the provincial minimum wages (UMR) in 2009.

        Actually, he said, the authority to decide the UMR rate is in the hands of the regional administrations and the regional councils for wage affairs.

        In response to nation-wide protests from workers against the decree, the government eventually bows to their demand.

        "The president has provided directives that we should secure the economic growth momentum and respond to the people's aspirations," the minister said.

        On Wednesday, Minister Suparno said the government would not revise the decree because it protect workers from massive layoffs.

        "The decree is a safety net so that massive layoffs would not take place," the minister said during a visit to an Islamic boarding school in Purworejo on Wednesday.

        Actually, the decree was issued after passing through a coordinative meeting which involved several relevant parties, particularly the bipartite body which consisted of employers and labor unions.

        Yet, after facing mounting resistance from various workers' associations and a call from the House of Representatives (DPR) to revoke the decree, the government eventually decided to revise article 3 of the decree.

        "Ideally, the decree should be revoked, but with the revision of its article 3 it is basically the same as lifting it," DPR Chairman Agung Laksono said on Friday.

        He said that he could understand the government's step in revising the decree instead of revoking it but suggested that the government learn a lesson from the controversial decree in taking a policy.

        The DPR in a leadership meeting on Tuesday (Nov. 25) called on the government to lift the decree because it had sparked strong reactions from workers and had the potential to create insecurity among the people.

        Until Friday, no much response to the government decision had been reported.

        The Indonesian Entrepreneurs Association (APINDO) of Purbalingga district in Central Java hailed the revision of article 3 of the decree.

        "We basically agree with and welcome the revision of the decree as long as it is done in good faith and it is not against the law," APKINDO chairman Saryono said on Friday.

        He said that APKINDO would follow what had been decided by the government, in this case the governor of Central Java, Bibit Waluyo, with regard to the regional minimum wages. (T.A014/A/HAJM/A/s012 28-11-2008 22:06:12