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Unions call for crackdown on companies not paying THR bonuses

Source
Jakarta Globe - August 13, 2012

Dessy Sagita – The Confederation of Indonesian Workers Unions has called on the government to crack down on companies shirking their obligation to pay workers their 13th month bonus before the end of Ramadan.

Said Iqbal, president of the confederation known as KSPI, said on Sunday that the Manpower and Transmigration Ministry must carry out spot-checks on companies to see whether they had paid out the bonuses, or THR.

He warned that many companies were avoiding the obligation by hiring workers on an outsource basis, and then terminating their contracts just a week before Idul Fitri. After the holiday, they hire them back, bypassing the obligation to pay the THR, he said.

"This happened recently at a company in Sidoarjo [in East Java]," Said said. "To date the KSPI has received 400 reports of outsourced workers being fired ahead of the Idul Fitri holiday."

He added the real figure could be much higher, but most workers were fearful of complaining because of the risk that they would not be hired back.

Said also said some companies were paying an "inhumane amount" of THR to their workers. He pointed to a recent case of a company in Medan where hundreds of workers went on strike after receiving a THR of just Rp 20,000 each.

"Something similar happened to around 1,000 workers at a textile factory in Purwakarta [in West Java], where they only got Rp 250,000 [$26] each," he said.

Said argued that many companies were being allowed to get away with this because the 1996 Manpower Ministry decree on THR did not specify any kind of punishment for failure to pay the full amount.

"Workers shouldn't just file their complaints with the government, which will only plead with the employers, but also with their unions, because they can bring pressure to bear," he said. "The important this is that the workers must fight for their rights."

Rieke Dyah Pitaloka, a member of House of Representatives Commission IX, which oversees labor affairs, backed the call for companies to pay the THR in full and on time.

Under the ministerial decree, the bonus of a full month's salary must be paid no later than a week before Idul Fitri, which this year falls on or around this Sunday.

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