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Gloomy outlook for workers next year

Source
Jakarta Post - December 7, 2004

Damar Harsanto, Jakarta – "Forget asking about how we're going to cope with the fuel price hike. Just asking the government to increase our wages to meet the minimum cost of living is difficult enough," complained Iqbal.

"Our demand is for the government to increase the already approved minimum wage by less than Rp 50,000 (US$5.56), but it's very unlikely that it's going to happen." Iqbal said the slight increase in the minimum wage – from Rp 671,550 this year to Rp 711,843 starting January 1, 2005 – was meaningless when compared to the 40 percent fuel price hike.

The fuel price hike will have a multiplier effect on prices of basic commodities and transportation. "Maybe we'll have to put up with starving a little more next year," he joked.

Iqbal and other representatives of workers associations met with the City Council's Commission E on people's welfare to discuss their demands and also held protests in front of City Hall.

Grouped as the Alliance of United Workers, at least 1,000 protesters demanded that Governor Sutiyoso revoke his ruling issued three weeks ago raising the provincial minimum wage to Rp 711,843. They called on Sutiyoso's administration to refer to the minimum cost of living allowance (KHM) of Rp 759,532. The KHM was based on a survey jointly made in July by tripartite group of the administration, workers associations and employers associations of the five city municipalities.

They cited Law No. 13/2003 on manpower and the constitution which both stipulate that every citizen is entitled to a better livelihood. "We reject the new ruling because it goes against the law and even the Constitution. We cannot tolerate such a glaring violation," another protester said.

Three councillors on Commission E – Ahmadi Hasan Ishak, Agus Darmawan and Emma Suchaemah – expressed their support for the worker's demands.

Along with the protesters, they made a joint statement to follow up Monday's meeting with another meeting on Wednesday with Governor Sutiyoso.

Meanwhile, City Manpower Agency head Ali Zubeir admitted that the new minimum wage did not anticipate the fuel price hike. "Who can anticipate such an increase in the future? You must know that the fuel price hike will also deal a severe blow to employers with significant increases in operational costs. It doesn't only affect workers," he said.

Zubeir insisted that the ruling was final and revoking the decision would affect other provinces in the country, claiming that those provinces use Jakarta's policy as a yardstick.

Governor Sutiyoso emphasized earlier that his administration would not revoke the decision. "I won't revoke it. If they [the workers] think that it contains legal flaws, then please, take it to court." Protesters said they would make a last ditch effort, including to bringing a case to court.

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