- The President of the Indonesian Trade Union Confederation (Konfederasi Serikat Pekerja Indonesia/KSPI), Said Ahmad, recently aired strong criticism of the government’s Draft Omnibus Law on Job Creation (“Draft Omnibus Law”). Mr. Ahmad has asserted that the Draft Omnibus Law is likely to have six negative impacts upon the Indonesian workforce.
- Firstly, the Draft Omnibus Law mandates for the replacement of the national minimum wage with an hourly payment system, which, it is claimed, may ultimately lead to a reduction in workers’ incomes. Secondly, the current severance payment system is likely to be removed. Thirdly, an expansion of outsourcing will be implemented which has the potential to lead to widespread layoffs.
- The Draft Omnibus Law also allows for unskilled foreign workers (TKA) to seek employment in Indonesia by removing a number of significant requirements. Moreover, if the Draft Omnibus Law is ultimately enacted, then workers’ pension funds are also likely to come under attack as a result of the expansion of the outsourcing system. And finally, it is feared that the Draft Omnibus Law will eliminate the current criminal sanctions which can be leveled against any businesses which are caught violating workers’ rights.
- For more on this story, see Hukumonline:“Kalangan Buruh Sebut Enam Dampak Buruk Omnibus Law bagi Buruh”.
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