Mariani Dewi, Jakarta – Contract work and outsourcing systems remain relevant for businesses needing to adapt to Indonesia's volatile market, an employer association and a lawmaker said in response to demands by May Day protesters.
House of Representatives member Bomer Pasaribu said Friday revoking Labor Law No. 13/2003 based on a one-sided demand would not solve current labor law problems. Some clauses in the legislation have been controversial, especially those dealing with contract work and delegated work (outsourcing).
"It's easy to say 'ban outsourcing' or 'up the pay', but what will happen afterward? What are the impacts on businesses? There needs to be another system that brings compromise to the table," Bomer said.
Contract work and outsourcing do not contravene the Constitution and would benefit both employers and employees if carried out properly, said deputy chairman of the Association of Indonesian Employers (Apindo) Hasanuddin Rachman.
The comments by Bomer and Hasanuddin were made in response to demands for contract and outsourcing systems to be revoked, as expressed during nationwide rallies on World Labor Day on Thursday.
"There are jobs that are permanent, for which the law says we cannot hire contract workers. But some jobs arise out of temporary situations and require only temporary workers," Hasanuddin said.
"Say someone is on maternity leave; we cannot hire a permanent worker to fill the job. Even contract workers know their work is not permanent."
He said the regulation on contract work and outsourcing had often been misapplied in practice. Examples of misuse included using contract workers for jobs of a permanent nature and outsourcing internal jobs.
He called on the government to put more effort into enforcing and promoting labor laws.
"They should audit companies and punish those that break the law. But do not blame all businesspeople for the wrongdoings of a few companies," he said. "The government should also deploy more labor inspectors and make sure workers are familiar with the law so they know their entitlements."
Bomer has suggested the implementation of a new workplace insurance system that would require companies to pool funds from periodical membership payments and use them for contingencies, including as compensation for dismissed workers.
"(Under the scheme) many companies would share the payment of social security. The workers would get the protection they need and the businesses would not be overburdened," he said.
The scheme is in line with the International Labor Organization's convention and has been implemented in many Scandinavian and South American countries.