Fadli, Batam – Some 1,000 workers employed by foreign companies in Batam staged a rally on Thursday demanding an end to the practice of outsourcing in the region, which they said had left them without futures.
"Thousands of workers in Batam have no future now because there is no certainty in their jobs," Indonesian Metal Workers Labour Union (FSPMI) chairman Anto Sujanto said at the rally.
The outsourcing mechanism most companies in Batam used violates Law No 13/2003 on Manpower, Anto said in a dialog with the head of Batam labor agency.
Many companies, for example, had used the mechanism to hire contract workers for their main work or had not provided health insurance for them.
In some cases, he said, outsourcing is done on multiple levels and involves more than one outsourcing company. Consequently, many workers' take-home pay is much lower than it should be, Anto said.
"Therefore, we demand the municipal administration fix this pressing situation. We can't let companies do as they please, because workers have no choice," Anto said.
Outsourced worker Anita said her salary was Rp 200,000 (US$21) less than other workers in the same position and service term who were recruited directly by the same company she was assigned to.
"Maybe our salaries are in fact the same, only mine is taxed by my outsourcing company," said Anita, also at the rally outside Batam municipality office.
Responding to the protesters' demand, Batam Manpower Agency head Rudy Syakyakirti said his office had issued outsourcing licenses to 56 companies, but only around 10 were still operating.
Rudy also said his office had difficulty enforcing employment regulations.
"Most companies refuse to reveal their numbers of outsourced employees," he said, adding that his office lacked personnel and funding to effectively police the law on outsourced employment.
"Which is why we mainly work based on reports which we follow-up," he said.
Rudy sympathized with workers, but said "developed countries also use a similar mechanism". "Only their mechanisms are much better regulated," he said.
"This (issue) comes under the authority of the central government."