Sunday, November 3, 2013

[batavia-news] N. Sumatra workers reject 10% wage hike, demand 50% + Riau’s minimum wage set at Rp 1.7m through voting

 

 

N. Sumatra workers reject 10% wage hike, demand 50%

Apriadi Gunawan and Rizal Harahap, The Jakarta Post, Medan/Pekanbaru | Archipelago | Mon, November 04 2013, 10:00 AM

The North Sumatra Workers Alliance (ABS) voiced its opposition on Saturday to the recently set 2014 provincial minimum wage of Rp 1.50 million (US$132.77) per month, which was decided by the provincial administration on Friday evening.

The workers said the increase of only 10 percent from Rp 1.30 million was inhumane and that it should be 50 percent.

ABS presidium member Minggu Saragih said higher costs of living driven by increased fuel and electricity prices had caused the value of workers wages to diminish by 30 percent. Therefore, he said, it was appropriate for workers to demand a 50 percent raise.

In recent days labor unions all over Indonesia have also been demanding a minimum wage hike of 50 percent or more for 2014.

"We reject anything below 50 percent," Minggu said in a press briefing accompanied by Sukma Halawa from the Indonesian Migrant Workers Union (SBMI), Agus Sutomo from the Indonesian Metal Workers Federation (FSPMI), Amin Basri from the Medan Workers Alliance and other local and national labor union representatives.

Minggu said workers would adopt two courses of action to protest the 2014 minimum wage. First, he said, workers would take to the streets to paralyze North Sumatra's economy, and second, some 1.6 million workers would not pay vehicle taxes. "We are capable of carrying out both of these actions if the governor does not revise the increase soon," he said, adding that in 2012 workers had successfully forced the provincial administration to revise the minimum wage.

North Sumatra is the most populated province outside Java and has a substantial rubber and oil palm plantation industry.

Governor Gatot Pujo Nugroho said the 2014 minimum took into account the basic living standards index (KHL), inflation and economic growth. "The minimum wage is already proper because the lowest KHL in North Sumatra is Rp 1.26 million," he said on Friday evening.

"In deciding the 2014 minimum wage, I have consulted various parties and considered various factors."

Meanwhile, North Sumatra Manpower and Transmigration Agency chief Bukit Tambunan said the provincial administration acknowledged the workers were demanding a 50 percent hike but that it would be difficult for the administration to agree to it.

"The 2014 minimum wage of Rp 1.50 million is the best solution for all concerned," he said.

As of Saturday, 16 of 34 provincial administrations had raised their 2014 minimum wages. The 16 provinces are Central, East, South and West Kalimantan, Jambi, Southeast Sulawesi, West Sumatra, Bangka Belitung, Papua, Bengkulu, West Nusa Tenggara, Banten, Jakarta, Riau, Riau Islands and North Sumatra.

Manpower and Transmigration Minister Muhaimin Iskandar called on the remaining 18 provinces to immediately announce their wage hikes to avoid any possible labor problems. It is expected that the new wage levels will come into effect on Jan. 1, 2014.

The wage hikes vary in each province, depending on the inflation rate, economic growth, workers' purchasing power, basic cost of living and employer's ability to pay.

Meanwhile in Riau, deadlock in determining the 2014 minimum wage has forced members of the Riau Remuneration Board to take a vote on the issue.

The board announced a 21.4 percent increase from Rp 1.4 million to Rp 1.7 million per month. Workers had demanded a 40 to 50 percent increase in the minimum wage for the province, which is the country's largest producer of crude oil.

"We had to take a vote because as of Friday night both businesspeople and workers had failed to reach an agreement," said Riau Manpower and Transmigration head Nazaruddin, who is also head of the Riau Remuneration Board

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http://www.thejakartapost.com/news/2013/11/03/riau-s-minimum-wage-set-rp-17m-through-voting.html

Riau's minimum wage set at Rp 1.7m through voting

Rizal Harahap, The Jakarta Post, Pekanbaru | Archipelago | Sun, November 03 2013, 7:55 PM

The Riau Remuneration Board has set the province's 2014 minimum wage at Rp 1.7 million (US$151.3), up Rp 300,000 or 21.4 percent from last year, through voting as negotiations reached a deadlock.

Head of Riau Manpower and Transmigration Agency, Nazaruddin, who is also Riau Remuneration Board head, said the 2014 minimum wage was agreed on Friday evening, meeting the deadline stipulated by the Manpower and Transmigration Minister Regulation No.7/2013.

"We had to decide it through voting because although we had held negotiation meetings five times, no agreement could be achieved. Sharp differences between workers and businesspeople could not be resolved," said Nazaruddin.

He further said that until the last meeting on Friday, each side continued to stick to their opinion.

Before deciding the 2014 minimum wage, the Remuneration Board first set Riau's basic living cost standard (KHL) at Rp 1,724,000.

"The new minimum wage fulfills only 98.6 percent of the KHL, lower than the workers' demand who sought 40-50 percent increase in minimum wage from the one in 2013," said Nazaruddin.

The meeting was attended by 19 out of 29 Remuneration Board members. Following the deadlock, the tripartite negotiation later agreed that they would choose one of three minimum wage options through a voting. The options were Rp 1,575,000, Rp 1.7 million; and Rp 1,71 million.

"Fifteen votes were in favor of the second option while the first option was supported by three votes. One person supported the third option," said Nazaruddin.

He said the proposal on 2014 minimum wage agreement had been submitted to the Riau Governor who would determine it as a Riau governor decree.

"The new minimum wage is set to take effect on Jan.1, 2014," Nazaruddin said. (ebf)

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