East Java likely to ignore decree on minimum wages

Written by Meenaa on Wednesday, November 19th, 2008

The provincial government will likely ignore the much-criticized joint ministerial decree on minimum wages, with acting governor Setya Purwaka saying the increase in the monthly minimum wage, scheduled to be set next week, will be based on the proposals of regencies and municipalities in the province.

Responding to increasing protests against the ministerial decree nationwide, Setya admitted having to resend eight proposals from as many regencies and municipalities for review, as the proposals were not based on tripartite agreements between employers, workers and the local government.

“I have resent the minimum wage increase proposed by the eight regencies and municipalities because they were not based on tripartite agreements,” he said, adding that he had no intention of hiding behind regents and mayors when dealing with the minimum wage issue.

Surabaya proposed a monthly minimum wage of Rp 948,500 (US$80), Sidoarjo Rp 955,000, Gresik Rp 971,624, Malang regency Rp 954,500, Malang mayoralty Rp 954,373, Batu Rp 879,000, Pasuruan municipality Rp 805,000 and Pasuruan regency Rp 955,000. The eight regencies and municipalities are industrial zones and/or tourist destinations.

“I want to make sure that the proposal is made on the basis of a tripartite consensus before a gubernatorial decree is issued on Nov. 21. I want to listen to regents and mayors,” he said.

Separately, chairman of the Commission E on labor and social affairs at the provincial legislative council, Saleh Ismail Mukadar, said that the governor should take initiative to directly approve what the regencies and mayoralties have proposed, because regents and mayors consulted with employers and labor unions before submitting the proposals.

“The governor should not be buying time, but instead taking the proposals to be approved in a gubernatorial decree on minimum wages in the province in 2009,” Setya said.

Meanwhile, thousands of workers affiliated with the National Trade Union (SPN), Muslim Workers Union (SPM) and the Confederation of Indonesian Prosperous Labor Unions (KSBSI) went on strike at the Sidoarjo regency administration’s headquarters in protest against the ministerial decree, which they said took the employers’ side.

They said workers could survive economic hardship if their monthly wages were raised by just six percent. “The minimum wage in the regency will be less than Rp 850,000 per month if the ministerial decree is implemented, while according to the market survey, the minimum need has reached Rp 978,000,” said the secretary of the Labor Resistance Alliance in the regency (ABM), Ery Kuncoro.

Nur Ahmad Syafuddin, a member of the Commission D on economic affairs at the regency’s legislative council, said the joint ministerial decree was inapplicable because it was against both the 2004 presidential instruction and the 2003 labor law.

“If the government is insisting the joint ministerial decree is final, it should revise the presidential instruction and the labor law with a major note that the government does not care for workers’ poor conditions,” he said.

Ridwan Max Sijabat , The Jakarta Post , Surabaya | Wed, 11/19/2008 11:07 AM | East Java