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Governmnet delays labor law deliberation amid protests

Source
Jakarta Post - April 9, 2006

Rendi Akhmad Witular, Jakarta – The government has officially postponed its plan to submit the controversial draft of the labor law amendment to the House of Representatives following waves of massive, rowdy street protests across Indonesia.

"We will not submit the draft in the near future. We will rewrite it and accommodate workers' demands," President Susilo Bambang Yudhoyono said in a press conference Saturday.

The review of the pro-business bill drafted by the government and business leaders will involve employers, labor unions and the government as well as independent experts.

The University of Indonesia, Padjajaran University, Gadjah Mada University, North Sumatra University, and Hasanuddin University have been appointed by the government to contribute ideas for the amendment.

"We should review contentious issues such as severance pay and insurance, as well as the role of (state social insurance firm) Jamsostek in promoting workers' welfare," said Yudhoyono.

Labor unions launched massive protests across the country in response to the proposed revisions to the law, paralyzing industries for the past weeks. The unions claim the draft in its current version favors employers at the expense of the rights and welfare of workers.

Yudhoyono met labor union leaders and representatives of the business community Friday, resulting in a decision to form a three-party forum to seek a resolution to the dispute.

The forum will factor three elements into its deliberations: the protection of the rights and welfare of workers, business growth in the country and economic expansion.

"We will have intensive discussions with full commitment to reformulate what is best for the nation. Various suggestions are needed to determine what is best suited for the revision," said Yudhoyono.

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