Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Ady TD Achmad, Yanuar Pribadhie
Minimum wage negotiations remain one of the most controversial and contentious issues for businesses and regulators. On the one hand workers pressure local governments to increase the minimum wage as much as possible, and on the other some employers are reluctant to pay the required minimum wage for a number of reasons, most often financial. This controversy is currently a contentious issue in Jakarta, after the Jakarta Provincial Government increased the minimum wage for 2014.
Fifty companies in Jakarta applied for a postponement in paying the mandatory minimum wage to their workers. More than half of the applications—34 companies—were rejected, for failing to fulfill the requirements under Jakarta Governor Regulation No. 42 of 2007 on the Postponement of Minimum Wage Implementation. Sixteen other companies are undergoing further examination.
As part of this process, thi week the Jakarta Wage Council is to visit the 16 companies to investigate their actual circumstances. As an advisory institution, the Council needs to cross-check data provided to ensure that the documents submitted by applicant companies match actual circumstances. Hadi Broto, Secretary of the Council, stated that the 16 companies have regularly applied for postponement.
“Most of those companies are from South Korea and running businesses in labor-intensive sectors such as garments and textiles,” said Hadi.
Asrial, a member of the Council representing the Indonesian Employers Association (Apindo), stated that the most difficult document to verify is the agreement between the business and labor union. Asrial explained that the “history” of such agreements is questionable. For example, it is common that a company bribes the workers or labor union in their company to agree to a postponement. As a result, when the postponement is approved by the Provincial Government, some dissatisfied parties file lawsuit at the Administrative Courts.
Companies that are requesting postponement of payment of the minimum wage in 2014 must pay their workers in accordance with the 2014 Decent Living Needs standard, which has been set at IDR 2,299,860 for unmarried workers with less than one year work experience. If the worker has more than one year work experience, the salary must be adjusted to reflect the working experience or must pass the minimum amount set out in the 2014 Decent Living Needs index.
(hot/kc)
Minimum wage negotiations remain one of the most controversial and contentious issues for businesses and regulators. On the one hand workers pressure local governments to increase the minimum wage as much as possible, and on the other some employers are reluctant to pay the required minimum wage for a number of reasons, most often financial. This controversy is currently a contentious issue in Jakarta, after the Jakarta Provincial Government increased the minimum wage for 2014.
Fifty companies in Jakarta applied for a postponement in paying the mandatory minimum wage to their workers. More than half of the applications—34 companies—were rejected, for failing to fulfill the requirements under Jakarta Governor Regulation No. 42 of 2007 on the Postponement of Minimum Wage Implementation. Sixteen other companies are undergoing further examination.
As part of this process, thi week the Jakarta Wage Council is to visit the 16 companies to investigate their actual circumstances. As an advisory institution, the Council needs to cross-check data provided to ensure that the documents submitted by applicant companies match actual circumstances. Hadi Broto, Secretary of the Council, stated that the 16 companies have regularly applied for postponement.
“Most of those companies are from South Korea and running businesses in labor-intensive sectors such as garments and textiles,” said Hadi.
Asrial, a member of the Council representing the Indonesian Employers Association (Apindo), stated that the most difficult document to verify is the agreement between the business and labor union. Asrial explained that the “history” of such agreements is questionable. For example, it is common that a company bribes the workers or labor union in their company to agree to a postponement. As a result, when the postponement is approved by the Provincial Government, some dissatisfied parties file lawsuit at the Administrative Courts.
Companies that are requesting postponement of payment of the minimum wage in 2014 must pay their workers in accordance with the 2014 Decent Living Needs standard, which has been set at IDR 2,299,860 for unmarried workers with less than one year work experience. If the worker has more than one year work experience, the salary must be adjusted to reflect the working experience or must pass the minimum amount set out in the 2014 Decent Living Needs index.
(hot/kc)
Ady TD Achmad, Yanuar Pribadhie
Minimum wage negotiations remain one of the most controversial and contentious issues for businesses and regulators. On the one hand workers pressure local governments to increase the minimum wage as much as possible, and on the other some employers are reluctant to pay the required minimum wage for a number of reasons, most often financial. This controversy is currently a contentious issue in Jakarta, after the Jakarta Provincial Government increased the minimum wage for 2014.
Fifty companies in Jakarta applied for a postponement in paying the mandatory minimum wage to their workers. More than half of the applications—34 companies—were rejected, for failing to fulfill the requirements under Jakarta Governor Regulation No. 42 of 2007 on the Postponement of Minimum Wage Implementation. Sixteen other companies are undergoing further examination.
As part of this process, thi week the Jakarta Wage Council is to visit the 16 companies to investigate their actual circumstances. As an advisory institution, the Council needs to cross-check data provided to ensure that the documents submitted by applicant companies match actual circumstances. Hadi Broto, Secretary of the Council, stated that the 16 companies have regularly applied for postponement.
“Most of those companies are from South Korea and running businesses in labor-intensive sectors such as garments and textiles,” said Hadi.
Asrial, a member of the Council representing the Indonesian Employers Association (Apindo), stated that the most difficult document to verify is the agreement between the business and labor union. Asrial explained that the “history” of such agreements is questionable. For example, it is common that a company bribes the workers or labor union in their company to agree to a postponement. As a result, when the postponement is approved by the Provincial Government, some dissatisfied parties file lawsuit at the Administrative Courts.
Companies that are requesting postponement of payment of the minimum wage in 2014 must pay their workers in accordance with the 2014 Decent Living Needs standard, which has been set at IDR 2,299,860 for unmarried workers with less than one year work experience. If the worker has more than one year work experience, the salary must be adjusted to reflect the working experience or must pass the minimum amount set out in the 2014 Decent Living Needs index.
(hot/kc)
Minimum wage negotiations remain one of the most controversial and contentious issues for businesses and regulators. On the one hand workers pressure local governments to increase the minimum wage as much as possible, and on the other some employers are reluctant to pay the required minimum wage for a number of reasons, most often financial. This controversy is currently a contentious issue in Jakarta, after the Jakarta Provincial Government increased the minimum wage for 2014.
Fifty companies in Jakarta applied for a postponement in paying the mandatory minimum wage to their workers. More than half of the applications—34 companies—were rejected, for failing to fulfill the requirements under Jakarta Governor Regulation No. 42 of 2007 on the Postponement of Minimum Wage Implementation. Sixteen other companies are undergoing further examination.
As part of this process, thi week the Jakarta Wage Council is to visit the 16 companies to investigate their actual circumstances. As an advisory institution, the Council needs to cross-check data provided to ensure that the documents submitted by applicant companies match actual circumstances. Hadi Broto, Secretary of the Council, stated that the 16 companies have regularly applied for postponement.
“Most of those companies are from South Korea and running businesses in labor-intensive sectors such as garments and textiles,” said Hadi.
Asrial, a member of the Council representing the Indonesian Employers Association (Apindo), stated that the most difficult document to verify is the agreement between the business and labor union. Asrial explained that the “history” of such agreements is questionable. For example, it is common that a company bribes the workers or labor union in their company to agree to a postponement. As a result, when the postponement is approved by the Provincial Government, some dissatisfied parties file lawsuit at the Administrative Courts.
Companies that are requesting postponement of payment of the minimum wage in 2014 must pay their workers in accordance with the 2014 Decent Living Needs standard, which has been set at IDR 2,299,860 for unmarried workers with less than one year work experience. If the worker has more than one year work experience, the salary must be adjusted to reflect the working experience or must pass the minimum amount set out in the 2014 Decent Living Needs index.
(hot/kc)