Ady TD Achmad, Robert Sidauruk
Several worker unions have rejected the Government’s plan to issue a Presidential Directive to limit provincial minimum wages (Upah Minimum Provinsi / UMP) in 2014.
According to the President of the Indonesian Workers Union Federation, Said Iqbal, the proposed Presidential Directive is unnecessary as there are currently a number of laws and regulations governing this matter.
For instance, there is already Law No. 13 of 2003 on Labor, along with Minister of Manpower and Transmigration Regulation No. 13 of 2012 on The Components and Implementation of the Decent Life Fulfillment Phase (Kebutuhan Hidup Layak – KHL – “Decent Life Plan”).
Iqbal is of the view that the proposed Presidential Directive is merely a knee jerk reaction by the Government in response to current economic conditions.
In fact, if implemented the proposal will weaken consumer purchasing power and result in a decline in domestic consumption.
“The Presidential Directive shows the Government is panicking in the face of the current economic circumstances,” said Iqbal during a press conference at the Jakarta Legal Aid (LBH Jakarta) Office last Friday.
Moreover, Iqbal believes the Presidential Directive will be overridden by the authority of Wage Councils. The Wage Council of each Regency/City is authorized to make an assessment of the implantation of the Decent Life Plan . These assessments form the basis for each Regent/Mayor in making recommendations to their respective Governors to set the minimum wage for their province.
This was also confirmed by member of the National Wage Council (Denpenas), Iswan Abdullah. He contends that his institution was not invited to any discussions on the proposed limitations on minimum wages in 2014. He believes that such a Presidential Directive would conflict with the Labor Law.
On the same occasion, Budi Wardoyo, Presidium of Jabodetabek Workers Union doubts the seriousness of the Government in improving worker welfare. This can be seen by the joint plan by the Government and businesses to classify industrial areas as vital objects.
As a consequence, Budi explains, the rights of workers to undertake industrial actions at their workplace will be restricted, such as strikes and demonstrations.
Likewise, Dian Septi, Secretary General at Cross Factory Workers Federation, highlighted the lack of concern from the Government for workers wellbeing, especially for garment factory workers.
Dian contends that although the garment industry sector has been cited as the largest contributor to national foreign exchange in the non-oil and gas sector workers in this industry remain poor.
“The majority of garment workers are poor, despite the fact it is a well developed industry sector,” added Dian.
In responding this issue, Muhammad Isnur, Advocate at LBH Jakarta, argued for the issuance of the Presidential Directive to be canceled as it would conflict with the Labor Law.
“The Presidential Directive is unconstitutional and we together with the worker unions demand that it be canceled”, Isnuer concluded.
(hot/kc)
Ady TD Achmad, Robert Sidauruk
Several worker unions have rejected the Government’s plan to issue a Presidential Directive to limit provincial minimum wages (Upah Minimum Provinsi / UMP) in 2014.
According to the President of the Indonesian Workers Union Federation, Said Iqbal, the proposed Presidential Directive is unnecessary as there are currently a number of laws and regulations governing this matter.
For instance, there is already Law No. 13 of 2003 on Labor, along with Minister of Manpower and Transmigration Regulation No. 13 of 2012 on The Components and Implementation of the Decent Life Fulfillment Phase (Kebutuhan Hidup Layak – KHL – “Decent Life Plan”).
Iqbal is of the view that the proposed Presidential Directive is merely a knee jerk reaction by the Government in response to current economic conditions.
In fact, if implemented the proposal will weaken consumer purchasing power and result in a decline in domestic consumption.
“The Presidential Directive shows the Government is panicking in the face of the current economic circumstances,” said Iqbal during a press conference at the Jakarta Legal Aid (LBH Jakarta) Office last Friday.
Moreover, Iqbal believes the Presidential Directive will be overridden by the authority of Wage Councils. The Wage Council of each Regency/City is authorized to make an assessment of the implantation of the Decent Life Plan . These assessments form the basis for each Regent/Mayor in making recommendations to their respective Governors to set the minimum wage for their province.
This was also confirmed by member of the National Wage Council (Denpenas), Iswan Abdullah. He contends that his institution was not invited to any discussions on the proposed limitations on minimum wages in 2014. He believes that such a Presidential Directive would conflict with the Labor Law.
On the same occasion, Budi Wardoyo, Presidium of Jabodetabek Workers Union doubts the seriousness of the Government in improving worker welfare. This can be seen by the joint plan by the Government and businesses to classify industrial areas as vital objects.
As a consequence, Budi explains, the rights of workers to undertake industrial actions at their workplace will be restricted, such as strikes and demonstrations.
Likewise, Dian Septi, Secretary General at Cross Factory Workers Federation, highlighted the lack of concern from the Government for workers wellbeing, especially for garment factory workers.
Dian contends that although the garment industry sector has been cited as the largest contributor to national foreign exchange in the non-oil and gas sector workers in this industry remain poor.
“The majority of garment workers are poor, despite the fact it is a well developed industry sector,” added Dian.
In responding this issue, Muhammad Isnur, Advocate at LBH Jakarta, argued for the issuance of the Presidential Directive to be canceled as it would conflict with the Labor Law.
“The Presidential Directive is unconstitutional and we together with the worker unions demand that it be canceled”, Isnuer concluded.
(hot/kc)