TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Special Report: Unions lay low when most needed

The country's seemingly militant labor unions, frequently opposed to any government-planned regulation on labor, has somehow run out of steam in ensuring workers get their rights during the recent hard times

The Jakarta Post
Fri, March 13, 2009

Share This Article

Change Size

Special Report: Unions lay low when most needed

The country's seemingly militant labor unions, frequently opposed to any government-planned regulation on labor, has somehow run out of steam in ensuring workers get their rights during the recent hard times.

Fewer street protests by the unions, at least since January, have kept labor problems in Jakarta and other major cities out of the public's attention.

Amid the worsening global economic crisis, even the unions seem to be tolerating the rising stream of layoffs by companies.

"We're not raising our voices the way we used to, because we understand the companies have no other choice in these hard times," Rekson Silaban, chairman of the Confederation of Indonesian Prosperous Labor Union (KSBSI), told The Jakarta Post on Thursday.

"We're already in a slump now, so there's no need to make things worse with street protests."

Rekson, who is also a commissioner at state pensions and workers' insurance firm PT Jamsostek, said unions should push for tax cuts for workers' retirement and severance pay, to ease their burden as well as that on the companies.

"There should also be a standard regulation requiring companies to announce bankruptcy three months prior to their official closing," he said.

"Such measures will enable the government to inject funds if necessary, or give the workers sufficient time to plan for their future."

Such announcements are a standard regulation for companies in Europe and the United States, Rekson pointed out.

Maulana Bungaran, chairman of the National Independent Workers Union (SPMN), shared similar sentiments.

"If we take to the streets to protest and go on strike, would it make things any different? Certainly not," he said.

"We have to act more wisely now, as more and more companies are collapsing during this crisis.

"But whatever the situation, the workers must have their rights and welfare. Only this time, we probably need to think of alternative measures."

Maulana suggested that in order to ensure workers' welfare during the crisis, it was vital for the government to safeguard companies' rights in the first place.

"For instance, there are too many illegal fees collected by corrupt government officials," he said.

"If the government can do something to eradicate these practices, then the companies will have extra money to spend on their workers' welfare.

"Another measure we can take is to give the management rights on workers' social welfare funds to the unions. Under the union's management, it will be more transparent and the workers will receive their full rights."

The government recently announced measures to cushion labor-intensive industries from the worsening crisis through tax cuts for both companies and workers.

Measures to help blue-collar workers have already been rolled out.

Workers with a maximum monthly salary of Rp 5 million working in the agricultural, fisheries and manufacturing sectors will receive an income tax reduction of 15 percent to help bolster their purchasing power.

With these efforts in place, the government also hopes to keep the labor unions happy.

Indonesia is home to more than 1,000 unions, most of them run by activists rather than actual workers.

The activists usually exploit their union platforms for personal gain, including vying for top positions in political parties, state companies or government agencies.

The lack of action from the unions is also due to requests from law enforcement authorities to top union leaders to lie low during the upcoming general elections, over concerns of igniting conflicts and riots.

The government has also urged companies not to make any mass dismissals before the legislative elections in April 9, to avoid any possible backlash.

In fact, most companies have been temporarily laying off their workers, but maintaining their salaries until the elections are over.

-JP/Faisal Maliki Baskoro

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.