Minister: Minimum Wage Determinations are Social Safety Nets

Ady TD Achmad, Andin Aditya Rahman

Muhaimin Iskandar, Minister of Manpower and Transmigration (Minister), asserts that wage increases can be discussed through a bipartite negotiation between workers and employers. The government endorses such discussion to determine minimum wage for laborers that are married, or those who have worked more than a year. Under the current system, the minimum wage determined by the local governments is calculated for an unmarried worker expenses, not laborers who have a family.

 “Minimum wage determinations are social safety nets that applies to single workers that work for less than a year. Other than this, please negotiate via a bipartite mechanism,” Muhaimin says on Monday.

The Minister affirms that the Government, businesses, and laborers have agreed to gradually increase the wages of laborers.

To satisfy the interests of each party, the Government will endorse the implementation of bipartite negotiations regarding wage increases after determining the 2014 minimum wage.

The Minister explains that wage increase is an important aspect to ensure laborer’s welfare. However, this must be balanced with an increase in work productivity, which will contribute to the company development and opening new positions within the company.

The Government has accommodated the demands of wage increases by issuing Presidential Directive No. 9 of 2013 on Policy in Determining Minimum Wage Respective to Business Continuity and Improved Welfare of Workers, and Minister Regulation No. 7 of 2013 on Minimum Wages (see ILB No. 2278). In addition, the Government also urges urged governors to issue a roadmap to grant a decent living for laborers in their regions.

Hasanuddin Rachman, Head of Industrial Relations and Advocate Division at the Indonesia Employers Association (APINDO), stated that bipartite negotiations should already be implemented by companies and the Government should not intervene on this issue.

“The government should not have issued the regulation that will control wage increases in corporations,” he asserted.

(hot/kc)

Ady TD Achmad, Andin Aditya Rahman

Muhaimin Iskandar, Minister of Manpower and Transmigration (Minister), asserts that wage increases can be discussed through a bipartite negotiation between workers and employers. The government endorses such discussion to determine minimum wage for laborers that are married, or those who have worked more than a year. Under the current system, the minimum wage determined by the local governments is calculated for an unmarried worker expenses, not laborers who have a family.

 “Minimum wage determinations are social safety nets that applies to single workers that work for less than a year. Other than this, please negotiate via a bipartite mechanism,” Muhaimin says on Monday.

The Minister affirms that the Government, businesses, and laborers have agreed to gradually increase the wages of laborers.

To satisfy the interests of each party, the Government will endorse the implementation of bipartite negotiations regarding wage increases after determining the 2014 minimum wage.

The Minister explains that wage increase is an important aspect to ensure laborer’s welfare. However, this must be balanced with an increase in work productivity, which will contribute to the company development and opening new positions within the company.

The Government has accommodated the demands of wage increases by issuing Presidential Directive No. 9 of 2013 on Policy in Determining Minimum Wage Respective to Business Continuity and Improved Welfare of Workers, and Minister Regulation No. 7 of 2013 on Minimum Wages (see ILB No. 2278). In addition, the Government also urges urged governors to issue a roadmap to grant a decent living for laborers in their regions.

Hasanuddin Rachman, Head of Industrial Relations and Advocate Division at the Indonesia Employers Association (APINDO), stated that bipartite negotiations should already be implemented by companies and the Government should not intervene on this issue.

“The government should not have issued the regulation that will control wage increases in corporations,” he asserted.

(hot/kc)

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