Rendi Akhmad Witular, Karawang, West Java – President Susilo Bambang Yudhoyono appealed to labor unions Friday not to use welfare issues for political means, which could jeopardize efforts to improve the country's investment climate.
Yudhoyono said protests on labor problems should be conducted within the law and peacefully to avoid tarnishing the image of local workers.
"Labor unions, government and the business community should live together in harmony. They should settle any labor problems in a sincere manner, and avoid turning them into an excessive political movement."
His speech came at the inauguration of a new motorcycle plant owned by PT Yamaha Motor Manufacturing West Java, a local unit of Japanese motorcycle giant Yamaha Motor Corp., in Karawang, West Java.
Yudhoyono ordered the ministries of industry and manpower/transmigration and local administrations to maintain regular communication with the business community to ensure workers received proper wages and health facilities.
"The government and related parties will seek a balancing point in which the welfare of the workers could be increased to an appropriate level, without disturbing the operation and expansion of a company," said Yudhoyono.
Labor disputes here all often end in violence. The most recent example was the clash between thousands of protesting workers and police in Surabaya on Jan. 16, with dozens of workers injured and eight others arrested.
Political opportunists sometimes use the protests to stir unrest, thereby raising their public profile.
The number of industrial disputes is expected to increase, particularly with some employers choosing to dismiss part of their permanent workforce and replace them with contract workers for cost and efficiency.
Employers argue that the frequent labor disputes, lack of legal certainty in resolving them and more productive and better skilled workers in other countries deter investors.
Both labor unions and employers have faulted the old approach of handling industrial disputes, a protracted, legally iffy committee-based system dating back almost 50 years.
However, the advent of the special labor court, inaugurated on Jan. 14 in Padang, West Sumatra, is expected to put an end to the frustration for both sides. Proponents say it provides faster, fairer and cost-free resolution of disputes, with a process of negotiations and mediation before a case can be brought before the court.
The government has embarked on an investment drive, revising laws and regulations that are deemed unfriendly to investors, including revising the labor law. Yudhoyono also urged workers to increase their productivity.
"If the operation of a company is not good because the workers lack productivity, it will also affect the workers themselves because they will risk layoffs. We don't want the situation to happen," the President said.