'€œThe three options are set to give certainty to workers employed by state-owned enterprises in violation of the legal outsourcing system,'€ Hanif said after his meeting with Rini at the latter'€™s office here on Wednesday.

He cited that the state-owned enterprises were being given three options: to promoting the workers to be permanent, to make a subsidiary company that could employ them on a permanent basis, or to promote them to be permanent workers in their vendor companies.

Many state-owned and private companies have recruited their workers from vendor or labor supplying companies on a contract basis, to do seasonal and non-core jobs in violation of the 2003 labor law. Because of this, most workers have been employed for more than three years without any certainty in their status, are being underpaid and are not registered with the National Healthcare Management Agency (BPJS Kesehatan) and the Workers'€™ Social Security Management Agency (BPJS TK).

The law allows companies to outsource some of their work to other companies and stipulates that the two-year labor contract can be extended only for one year and after that the management has to decide on whether to give a permanent status to those workers or dismiss them.

Hanif said he and Rini agreed to set up a joint team to help state enterprises choose an appropriate option and give certainty to contract-based workers so as to comply with the law.

The State-Owned Enterprises Ministry revealed in 2013 that more than 200,000 workers were employed in violation of the outsourcing system in 12 state-owned enterprises, including PT Pertamina, PT PLN and PT Telkom. The three companies reportedly made 37,000 workers permanent after they were employed for many years under the outsourcing system. (++++)

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