Fadli, Batam – Riau Islands businesspeople have proposed setting the 2008 monthly minimum wage for Batam city below the average inflation rate.
Businesspeople from the Riau Islands chapter of the Indonesian Employers Association (Apindo) have proposed a 1.5 percent minimum for next year.
Worker unions are seeking a minimum wage that covers the basic living costs. Batam city's monthly minimum wage is currently set at Rp 860,000 (US$95.50).
"We don't want to discuss further (whether) the amount exceeds the inflation rate (or not)," the Riau Islands Apindo chairman, Abidin, told The Jakarta Post.
"A considerable annual pay increase would not benefit businesspeople. We hope the government will review the annual pay increase," said Abidin, who is also Batam city's Apindo chairman.
A joint discussion between the administration, businesspeople and employees was to determine the minimum wage for Batam City by October, but the parties had not considered pay increment issues to be proposed to the mayor.
Businesspeople in Batam believe the pay rise scheme over the past several years has not benefited them.
In 2005, the minimum wage was set at Rp 635,000. It increased by 25 percent to Rp 815,000 in 2006, and rose to Rp 860,000 this year. "We find it hard to predict operational costs and the criterion for pay increases," Abidin said.
Apindo has urged the government to include inflation in determining the City Minimum Wage scheme so businesspeople could estimate their operational costs for next year.
Meanwhile, workers have demanded next year's minimum wage cover the basic living cost for Batam city, which is around Rp 1,200,000 per month.
Head of the Riau Islands chapter of the All-Indonesian Trade Unions (SPSI), Edwin Haryono, said workers in Batam had yet to enjoy salaries that covered their monthly living expenses.
"Workers are still moonlighting to cover monthly living expenses. If next year's minimum wage scheme does not match living costs, we will fight for our rights," Edwin said.
Batam Manpower Office head Pirma Marpaung said his office could not yet predict the pay increase amount because discussions were still underway.
"Furthermore, the government is just a mediator. If discussions become deadlocked at the municipal level, it is the prerogative of the governor to determine the wage scheme in each city or regency," Pirma said. Rallies staged by disgruntled workers over the City Minimum Wage scheme are a common occurrence in Batam.