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Jakarta Post

Brace for more rallies, say unions

Most of these cities, including the capital, have already set their 2014 minimum wage, and city dwellers are expressing annoyance, even more so than during the first wave of nationwide strikes held Oct

The Jakarta Post
Jakarta
Sun, November 24, 2013

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Brace for more rallies, say unions

Most of these cities, including the capital, have already set their 2014 minimum wage, and city dwellers are expressing annoyance, even more so than during the first wave of nationwide strikes held Oct. 31 to Nov. 1.

When asked for a comment, a manager in charge of thousands of cigarette factory workers only texted, '€œPusing! [headache]'€, during the prior weeks of heated negotiations.

The Jakarta unions have lowered their demand, though it may be too little too late as Governor Joko '€œJokowi'€ Widodo has indicated that he will not budge from the set minimum monthly wage of Rp 2.4 million (US$ 205.22), up 11 percent from the current Rp 2.2 million wage.

Instead of the Rp 3.7 million they were originally demanding, union boss Said Iqbal has said the Jakarta workers are now seeking Rp 3 million per month, citing the minimum cost of living in the city at
Rp 2.8 million.

It'€™s true that the city is getting more expensive, but in demanding such a steep wage hike, workers cannot expect to find much empathy in the capital, even if cafe patrons are aware of the large income gap.

When hearing the demand for Rp 3.7 million, shocked residents remarked that a civil servant with a university degree or a lecturer at a state university would earn a similar monthly salary.

Workers are banking on a statement made by Deputy Governor Basuki '€œAhok'€ Tjahaja Purnama, who said one needed at least Rp 4 million per month to live in Jakarta. But he added that many factories would be forced to close if they paid their workers that wage.

Besides the demand for a higher minimum wage, workers are also voicing other concerns, such as unfair treatment by management, potential pay cuts, suddenly being shifted to temporary work or being laid off.

Union leaders succeed in making the workers look like a force to be reckoned with, as there are a putative 90 federations across the country, and last year'€™s actions, which closed toll roads, forced the Bekasi and Jakarta administrations to increase their previously set minimum wages.

But the governor and his deputy are signaling that this year will not be like the last, and that the future of wage negotiations in the city will follow a more predictable formula.

They have reiterated that last year'€™s drastic increase of 44 percent was a one time correction for a minimum wage that had been far too low in previous years and that this year'€™s 11 percent hike capitulated to neither workers nor employers, Ahok said.

Generally speaking, employers are exasperated with the government for claiming to be investment-friendly, yet allowing uncertainties to run wild in starting new business, import and export processing times and dishonesty in permit processes.

What also bodes ill for workers are allegations of the politicization of the labor movement, as union leaders are allegedly seeking to score personal political points ahead of next year'€™s election. As residents grow increasingly fed up with the disruption to daily city life caused by strikes and rallies, this latest round of action may prove fruitless for workers.

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