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SBY has not eased labor pains: Activists

Labor unionists criticized President Susilo Bambang Yudhoyono's performance in the past five years, saying that the majority of workers have not experienced improved monthly minimum wages and that the deadlock over contentious industrial disputes remain unresolved

The Jakarta Post
Jakarta
Tue, September 29, 2009

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SBY has not eased labor pains: Activists

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abor unionists criticized President Susilo Bambang Yudhoyono's performance in the past five years, saying that the majority of workers have not experienced improved monthly minimum wages and that the deadlock over contentious industrial disputes remain unresolved.

Chairman of the Confederation of All-Indonesian Workers Union (KSPSI) Syukur Sarto said Monday that workers were the most vulnerable group in the past five years as their monthly income had remained relatively static.

He said based on a recent labor union study, the monthly minimum wages have been nominally raised since 2004.

In reality the real wages have dropped by at least by 18 percent, mainly due to the annual inflation rate, according to the same study.

Minimum wages were on average 15 percent lower than the minimum physical needs (KHL), he said.

"Besides the low minimum wage, many workers were dismissed because of rampant outsourcing practices," he said.

"This leads to them later becoming reliant on the government's social safety net programs."

He added open unemployment has reached almost 10 million while disguised unemployment has reached 31 million.

Separately, Chairman of the Confederation of Indonesian Prosperous Labor Union (KSBSI) Rekson Silaban concurred that there had been little improvement for the workforce under President Yudhoyono's administration.

"Some workers and their families have entered the informal sector, which means no job security or retirement benefits, because of rampant outsourcing practices and the dismissal of contract-based workers."

Rekson said workers were disappointed that the government had failed to settle crucial labor issues stemming from the contentious 2003 labor law that revised the 1992 social security law and the 2004 national social security law.

The revision reportedly left workers unprotected, especially those that had been dismissed.

"The government has intentionally ignored the deadlock between employers and workers over contentious issues in the labor law resolved and the proposed draft bill was put into the drawer," he said.

"The bill to revised the social security programs, especially the pension benefit payroll, has been hijacked by the House of Representatives.

"It is apparently impossible for the government to implement the national social security programs in Oct. 19."

The President dropped the bill to revise the labor law following a strong opposition from workers during the violent 2007 May Day celebrations.

Due to high severance and service payments that are required by the law, many employers resorted to outsourcing and recruited contract-based workers.

Workers have strongly opposed the proposed elimination of the harsh chapters on severance and service payments in their bid to avoid arbitrary labor dismissals.

Chairman of the Federation of All State-owned Enterprise Workers Union (FSP BUMN) Abdul Latief Algaf called on the President and the government to gradually repair the labor conditions amid the recovering world economy.

"The President should start deliberating the bill on social security programs and address the revised draft law on labor by reviving the three-party negotiations with employers and workers."

He added that all labor unions at state enterprises would ask the next minister of state enterprises to deploy a repressive approach and force state enterprises to fully participate in the social security programs and the pension program, in an effort improve job security among workers.

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