WORKERS' WAGE DEMAND CONSIDERED UNREALISTIC

By Andi Abdussalam

Jakarta, Sept 5 (Antara) - The decent standard of living of laborers has continued to increase in the current economic conditions but raising their wages too high will cause some of their companies to go bankrupt.          Thus, workers who staged rallies to demand a salary increase up to 50 percent are asked to understand the country's economic conditions because high wage hikes could cause firms' closures or workers' layoffs.          "The country is now being hit by economic crisis. The local currency rupiah continues to weaken against the US dollar which affects the economy. So, we hope workers would understand this condition. Employers and workers should support each other," Jakarta Governor Joko Widodo (Jokowi) said in the City Hall on Tuesday in response to labor rallies demanding salaries increase.          Millions of laborers, however returned to streets on Thursday and held a rally in front of the Presidential Palace in Jakarta, demanding wage increase and immediate implementation of the National Health Insurance (Jamkesmas).            The protesters came from the Indonesian Metal Workers Federation (FSPMI), the Workers Union Confederation (KSPI), and the Indonesian Labours Union Association (ASPEK).         "Workers are in denial of their low wages and are demanding the government under President Susilo Bambang Yudhoyono to increase the minimum wage standard by 50 percent in 2014," said a protester.          According to KSPI chairman Said Iqbal in a press statement made available to Antara on Thursday,  his confederation mobilized 30 thousands workers from Jakarta and its buffer towns of Bogor, Depok, Tangerang, Bekasi (Bodetabek), Karawang (West Java), Cilegon and Serang (Banten).          "We first marched to the State Palace and continued our rallies at the Health Ministry, the Manpower and Transmigration Ministry and the state-owned workers insurance firm PT Jamsostek," noted Said Iqbal.          Said explained workers demanded a provincial minimum wage (UMP) increase by 50 percent in 2014.          "We demand a 50 percent increase in the UMP based on the calculation of 84 components that make up the increase in the decent living cost (KHL). If it is only based on 60 components it mean no increase in the UMP in 2014," Said stressed.          But the laborers demand was seen by Jokowi as too high. He asked workers to understand the country's economic conditions before they demand a UMP increase of up to Rp3.7 million per month.          Jokowi called on laborers to be aware of the fact that the significant increase in the UMP in 2012 had caused a number of companies to go bankrupt.          "The UMP increase last year was relatively high but this has caused a number of companies to close their business. We do not want others to face the same fate or to lay off their workers," noted  Jokowi.          The same opinion was also expressed by Jakarta Deputy Governor Basuki Tjahaja Purnama (Ahok).  He said the workers demand for  an increase of Rp3,700,000 per month in 2014 was too high and burdened the companies.          "If companies are required to pay that amount, there would be many workers to be laid off. So, who should be responsible for this? The figure is too big," Ahok said.          Yet, he promised to take firm sanctions against companies in Jakarta which pay their workers below the decent living cost (KHL) rate at Rp1,978,789 per month.          In the meantime, Head of Jakarta's Manpower and Transmigration Office Priyono said his office was still conducting surveys to decide the KHL level in Jakarta for 2014. "We have conducted surveys for six times from March to June, 2013. We will still carry out the surveys for two times in September and October this year," Priyono said.           Priyono said that based on his previous surveys last July, the value of KHL for Jakarta was Rp1.915 million. "But we could not yet predict the value of the KHL next October," added Priyono.          On the national scale, the Central Bureau of Statistics (BPS) has been assigned to decide the rate of the KHL which would be taken as a reference to decide provincial minimum wages (UMP).          "We have to accomplish the survey before we enter 2014. Actually we can finish it in November but it would be a rush job," Sasmito Hadi Wibowo, the statistics director of BPS, said.           Sasmito said that the results of BPS surveys would be handed over to the Ministry of Manpower and Transmigration to be made a recommendation by the remuneration board.          Manpower and Transmigration Muhaimin Isakandar has said that the decision on the UMP rate for 2014 should not come late.          "Workers and employers should cooperate to reach a decision so that it would not be revised again and create polemics. We hope the decision on the UMP rate for 2014 would be made on time," the minister said.          Muhaimin expressed hope that the provincial, national and city remuneration boards would no longer differ on the UMP rate so that conflict which often took place in the region would not be repeated.          Besides, according to the minister, employers and workers' unions should also cooperate to avoid layoffs or delays in the application of UMP rate increase.          He said that the delay in application of UMP rate in 2013 increased in numbers.          The Ministry of Manpower and Transmigration data showed that in 2013, 498 companies delayed the implementation of the UMP rate increase, up from that in 2012 which stood only 40 firms.          The increase in the number of firms delaying the UMP rise in 2013 was partly due to high wage increase, reaching an average of 19.10 percent.          Muhaimin claimed that all sides shared responsibility for maintaining the jobs of 114 million workers in the country and provide jobs for 7,170 million others who were not yet employed.          The minister said last month that UMP would be raised by 10 percent plus inflation in 2014.          "The 10 percent wage increase plus inflation will be carried out by companies, except by  intensive-labor firms, where increase is only five percent plus inflation," the minister said.          The UMP at labor-intensive companies is raised by five percent only because the level was still within the realistic need.          Muhaimin said policy regarding the UMP was expected to be fair to businesses so that it would not cause bankruptcy and worker layoffs.***4*** (T.A014/INE) (T.A014/A/BESSR/A. Abdussalam)