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President: 'Labor disputes must be settled thoroughly' JAKARTA - President Susilo Bambang Yudhoyono has asked for a thorough settlement of the workers` demand for pay rise without any remaining problems, Hatta Rajasa said.

After attending a meeting at the presidential palace to discuss the minimum wage issue here on Tuesday, the chief economic minister said if the problems left were piled up they could lead to an incident like the one yesterday.

The meeting was attended by Coordinating Minister for Political, Security and Legal Affairs Djoko Suyanto, Coordinating Minister for People`s Welfare Agung Laksono, Manpower Minister Muhaimin Iskandar, National Police chief General Timur Pradopo and Defense Forces (TNI) commander Admiral Agus Suhartono.

Hatta said President Yudhoyono had also called on the ministers concerned to directly involve themselves in settling the problem together with regional governments. "They all must be involved, heads of regional administrations and ministers concerned must take part in the efforts," he said.

He said all government apparatus must take anticipatory measures in dealing with workers` demand so that an incident like blocking the Cikampek toll road on January 27, 2012 would not happen again.

"They must sit and talk no matter how strong the debate could be. A way out will certainly be found. If necessary after a tripartite meeting is held they come to the government to ask for help on how to settle the problem," he said.

Muhaimin Iskandar meanwhile said his office has had an initiative to settle the demand of workers in the district of Tangerang (Banten) who have asked the Apindo (association of employers) to revoke its lawsuit against the decision of the governor of Banten Number 561/Kep,1-Huk/2-12 on revision of the district minimum wage.

He said his office would gather all parties concerned from Apindo and workers` unions and also regional administration representatives on Wednesday.

"Perhaps I would also invite the governor to come to my office tomorrow. Hopefully there will be no more problems after the meeting tomorrow. A compromise would be sought that would make all parties happy," he said.

He hoped the meeting tomorrow would be fruitful so that the workers` threat to block the Jakarta-Tangerang toll road and access to the Soekarno-Hatta airport on February 9, 2012 would not come into reality.

The governor of Banten has set the average wage for workers in Tangerang at Rp1,529,000 like that for Jakarta. The wage is put in three categories namely for heavy industries at Rp1,758,000, chemical industries at Rp1,682,000 and for metal industries at Rp1,605,000.

Apindo has filed a lawsuit against the governor`s decision and demanded that it would be put back to Rp1,381,000 as has been agreed before by the wage council. Muhaimin said Apindo has felt to be left behind in the discussion of the new wage and therefore filed the lawsuit.

Muhaimin said the government did not see the potential of the labor action to spread to other regions because employers, regional government and labor unions have always been involved in determining the minimum wage.

To avoid misinterpretation he said he would issue a ministerial decree that would explain components used to determine the wage. "There must no longer be interpretation by employers, workers and the government. The regulation will be made clear cut," he said.

He said the minimum wage is set based upon a survey that covers the price of basic necessaries and market prices, the results of which are later discussed by the regional government, Apindo and labor unions who then produce a recommendation for the minimum wage.

He said nationally the interpretation was not a problem and acceptable by all parties. "Only several cases have multi-interpretation," he said.

Related blog entries (category 'Economy') Related blog entries (category 'Economy'):
29 January 2012 · Indonesia finds agreement over minimum wage for Bekasi
24 January 2012 · Economist: Raising fuel price more realistic
22 January 2012 · Doubts over announced fuel subsidy cut
17 January 2012 · House to decide subsidized fuel cut next week
14 January 2012 · Indonesia's foreign investment to surpass $19 billion in 2012
12 January 2012 · Nike to pay $1 million to Indonesian workers for unpaid hours

Related blog entries (category 'Economy') Tags: wage, hike, conflict

Posted in Economy @ 02 February 2012 06:35 CET by Blog Bot · 'Blog' RSS feed · permalink

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