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Your letters: The era of cheap labor is over
This article is in response to the statement made by Sonia Kong of the Association of Korean Businesspeople in Batam: âThere are 17 companies that have decided to close and move to other countries, mostly driven by the increase in the minimum wage by 43 percentâ in an article titled âBatamâs appeal dims for Korean investors,â (The Jakarta Post, April 6)
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his article is in response to the statement made by Sonia Kong of the Association of Korean Businesspeople in Batam: 'There are 17 companies that have decided to close and move to other countries, mostly driven by the increase in the minimum wage by 43 percent' in an article titled 'Batam's appeal dims for Korean investors,' (The Jakarta Post, April 6).
Let's get to the point. Since Batam Island opened its doors to foreign companies to operate in a Free Trade Zone starting in 2007, not only did Korean companies make handsome profits but also Japanese, Malaysian, Singaporean, European and American entities.
All these years they enjoyed tax holidays and special concessions given by the local authorities under a decree issued by then president BJ Habibie. And all the profits achieved were mainly due to the extremely low wages paid to the workers that were considered very cheap in the region. So, in plain English, we say: 'When the going is good, they stay. When the going is bad, they leave.' Not a big surprise to anyone.
I write this article with the purpose of focusing your attention on the human dimension of young boys and girls working in the industrial and manufacturing sectors on Batam Island. They come from near and far, at the prime of their youth, just to seek employment to get some working experience and skills if any, but were paid pittance by these conglomerates.
Year after year, they slogged but only received increments in dribs and drabs. Look deeper into what they can afford with their meager salaries ' they were found wanting! Pity, employers don't see and understand their plight or at least their contributions ' they only want to achieve their yearly profits. This is the horrible irony of it all.
Yes, many, many companies have left Batam for good ' a bitter pill for the Government to swallow? Certainly not as time has changed when on Dec. 1, 2012 President Susilo Bambang Yudhoyono announced he has taken a firm stance amid demands from labor unionists when he said: 'It is our moral obligation to fight for it.'
The era of cheap labor and injustice is now over. The speech was made before governors, regents, mayors, police chiefs and regional military commanders.
Luwanto
Jakarta
