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Not all companies unable to pay Idul Fitri bonuses, labor union says as businesses ask for leeway
The Indonesian Employers Association (Apindo) submitted on April 6 a proposal to the Office of Coordinating Economic Minister and the Workers Social Security Agency (BPJS Ketenagakerjaan), asking to postpone the payment of THR for a year due to the COVID-19 crisis.
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Workers in a cigarette factory in Kudus, Central Java. (Antara/Yusuf Nugroho)
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orkers are questioning businesses' request to the central government to excuse them from the obligation of giving full Idul Fitri holiday bonuses (THR) to their employees, with a labor union saying that not all companies have been severely affected by the COVID-19.
The Indonesian Employers Association (Apindo) submitted on April 6 a proposal to the Office of Coordinating Economic Minister and the Workers Social Security Agency (BPJS Ketenagakerjaan), asking to postpone the payment of THR for a year due to the COVID-19 crisis.
Indonesian Worker Union Confederation (KSPI) president Said Iqbal said the government should make it clear that not all sectors had been equally hit by the novel coronavirus, then went on to question the Manpower Ministry's data on workers affected by the pandemic.
“The government should not generalize industrial sectors affected by the pandemic. There must be a clear classification of sectors that have been affected. Not all companies are unable to afford full THR, wages or severance pay [for laid-off workers],” Iqbal said in a written statement on Monday.
Manpower Ministry data shows that over 1.5 million workers in both the formal and informal sectors have either been furloughed or laid off as of April 9, as companies temporarily halt operations to comply with large-scale social restrictions (PSBB).
While acknowledging the economic pressures brought on by the virus, Coordinating Economic Minister Airlangga Hartanto Minister reminded all businesses on April 2 that paying out Idul Fitri holiday bonuses "is mandatory", without exception.
Iqbal said that according to KSPI data, businesses with the most layoffs included tourism-related companies and services, airlines, hotels, travel agents, restaurants, logistic firms, online transportation services, digital economic firms, as well as micro, small and medium enterprises (MSMEs).
However, Iqbal said he had yet to see massive outbreak-related layoffs in the manufacturing sector, including in labor-intensive and capital intensive businesses, although some workers had indeed been sent home due to PSBB measures and expired contracts.
"Many laid-off workers are from tourism and the MSMEs sector [...] The public needs to know these classifications, so they don't become anxious," he said.
He further raised concerns that unclear data from the government could be used by certain parties to justify the deliberation of the omnibus bill on job creation at the House of Representatives, which has been strongly rejected by labor unions.
“At the same time, the omnibus bill’s deliberation is ongoing. There is the impression that the omnibus bill will offer a solution for all the layoffs; by inviting new investors through the bill. It’s better to focus on COVID-19 handling and the layoffs that follow.”
He added that 50,000 workers were ready to hold a massive rally against the bill in Jakarta and several other provinces on April 30 despite the outbreak.
