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Workers set to strike as House, govt agree on labor cluster in jobs bill
The government and the lawmakers also agreed to change the maximum severance pay scheme in which the government also covers the payment under a newly established unemployment insurance (JKP), which will reduce the amount paid by companies.
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Workers stage a rally in front of the House of Representatives complex in Senayan, Jakarta, on Aug. 25. They opposed the omnibus bill on job creation and called for the government to do more to prevent mass layoffs during the COVID-19 pandemic. JP/Seto Wardhana (JP/Seto Wardhana)
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t least 5 million workers have planned a national strike as the House of Representatives and the government concluded the deliberation of the labor issues in the omnibus bill on job creation on Sunday, abandoning an earlier plan to drop the articles.
The strike is planned to take place from Oct. 6 to 8, when the House is expected to hold plenary sessions to pass the bill into law.
The deliberation on the cluster containing revisions to the 2003 Labor Law has been the most difficult part in passing the bill since it has been marred by protests from labor unions. There had been plans to leave the cluster out of the bill deliberation process due to the strong resistance from the unions.
During a session held from Friday to Sunday, lawmakers and the government agreed upon at least nine points of the revisions.
Among the points that have been agreed is abolishing the sectoral minimum wage (UMSK) by only recognizing the provincial minimum wage (UMP) and regency or municipality minimum wages (UMK), the formulas for which are based on economic growth and the inflation rate.
"Workers are still calling for the UMSK to remain in the law, and we want there to be a limit on how long workers can be employed on a contract basis or outsourced, as well as on the type of work allowed,” Indonesian Worker Union Confederation (KSPI) president Said Iqbal told The Jakarta Post on Monday.
Read also: Lawmakers may drop labor cluster from Indonesia's jobs bill to meet August deadline
