Agnes S. Jayakarna, Surabaya – The East Java provincial administration's decision to allow nine companies to postpone the implementation of the government-set minimum wage would hurt workers, according to a workers' group.
East Java coordinator of the Alliance for the Defense of Laborers, Jamaludin, said on Thursday that the decision severely limited the workers' choices. "The decision, made without offering any solutions for the workers, is a cheap political move," he said.
He urged related groups to continue monitoring the minimum wage implementation across the province.
East Java Governor Soekarwo has earlier allowed nine companies to postpone the implementation of the administration-set minimum wage for this year.
Head of the province's empowerment, transmigration and residential affairs agency, Gentur Prihantono, said that the decision was taken following a bipartite agreement with the companies.
He said nine out of 12 companies proposing the delay were allowed to postpone the implementation of minimum wage due to their poor business performances, which made it difficult for the companies to meet the 2010 minimum wage rate. Currently, there are 30,050 companies operating in the province.
"The (nine) companies have been given between four and 11 months before they can implement the 2010 minimum wage but (the time) will depend on their financial performance," Gentur said.
He said before making the decision, a team, including from the administration and independent auditors, had surveyed the companies.
Out of the 12 companies, the survey decided that only nine that really face financial problem and could not realize raise their workers' payment in line with the 2010 minimum wage requirement.
He said if there were other companies that refused to implement the new wage, they would be punished.
The alliance urged the provincial administration to allocate parts of its budget to help the workers who were paid under the agreed minimum wage. "The administration should be responsible for its decision," Jamaludin said.
East Java governor announced the province's municipal and regency minimum wages in November last year as stipulated by the gubernatorial regulation.
The highest wage of Rp 1,031,500 (US$110) was given to Surabaya municipality, while the lowest wage of Rp 630,000 was given to Pacitan regency.
Currently, of the 38 regencies and municipalities in East Java, only seven have a minimum wage of more than Rp 1 million. They are the municipalities of Surabaya and Malang and the regencies of Malang, Gresik, Mojokerto, Sidoarjo and Pasuruan.