Employers to sue governor over wages

The Jakarta Post ,  Surabaya   |  Mon, 12/01/2008 10:42 AM  |  East Java

Employers are preparing a lawsuit against the governor over increases to provincial minimum wage which they say will overburden them amid the global financial crisis, according to their association.

The Indonesian Employers' Association (Apindo) provincial chapter secretary, I Made Sudjana, said the lawsuit would be filed to the State Administrative Court on Monday.

He said the association had little hope that the review would take place before January 2009.

"The governor issues the decree without consultation with employers. The hikes are irrational and will certainly raise the already heavy financial burden facing all companies, particularly small and middle-scale enterprises," he told The Jakarta Post over the weekend.

The decree issued by acting governor Setia Purwaka on Nov. 20, 2008, stipulates hikes in the daily minimum wage between 19 and 29 percent.

Sudjana said his side had received numerous objections to the minimum wage hike in the province's eight industrial areas of Surabaya, Pasuruan, Sidoarjo, Gresik, Malang city, Malang regency, Mojokerto and Nganjuk.

"We cannot accept the decree because the hikes are not in line with the ones proposed by employers in the industrial zones."

He said most employers were disappointed with the provincial government, which he said had never been explained to the public why it decided to raise the minimum wage in seven industrial areas higher than in Surabaya, the provincial capital.

The minimum wage will be raised to Rp 971,624 in Gresik and Mojokerto, Rp 955,000 in Pasuruan and Sidoarjo, Rp 945,500 in Malang city and regency, while in Surabaya the wage will increase to Rp 948,500.

Employers agree that the government should pay attention to the investment condition caused by the global financial crisis as recommended by the joint ministerial decree issued by four relevant ministers on Oct. 24.

Head of the local manpower office M. Syafii said employers facing financial turmoil were encouraged to file a request to postpone paying their workers in accordance with the governor's decree.

"Before filing the request," he said, "employers are required to hold a bipartite negotiations with their workers to have a legal basis for the local government to accept it."(sal)

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