South Sumatra is one of the regions where the development of KSBSI is quite strong, with 5 federations who have a total of 15.210 members. The monthly provincial minimum wage in South Sumatra in 2018 was 2.600.000 Rupiah (± 165 euro) and increased to 2.800.000 Rupiah ((± 176 euro) in January 2019. In Indonesia, the majority of workers receive wages that are composed of the provincial minimum wage and a fixed allowance. This means that there is no difference in wages between workers who have a work experience of less than one year and wages of workers who have a tenure of more than one year. To increase the income of workers in South Sumatra, KSBSI is very serious in advocating for increases in provincial minimum wages. With the existence of a wage scale structure, it is expected that there will be an increase in wages and there will be rewards for workers who work more than one year. This year there are 12 companies that have handed over the structure of the wage scale to the South Sumatra labour agency.
In 2018 Indonesia’s economic growth tended to be stable at about 5%. Increasing religious sentiment, abused by Islamic fundamentalists, stirred up fears that conservative parties would claim victory in the regional elections, thus also influencing the national elections in April 2019. Identity and religious politics risk to divert attention from the agenda of economic development, prosperity and social welfare that is being promoted by the current Indonesian administration under President Joko Widodo. On 28 September an earthquake and tsunami hit Palu and Donggala in Central Sulawesi, killing 2.113 and injuring 4.612 people. Both KSBSI and SBMI provided immediate assistance to their members in the area and the families who became victim of the tsunami.
Minimum wages, wage scale structure and social security
Since presidential regulation 2015/n°78 was adopted, yearly minimum wages in Indonesia (set at provincial or district level) can only be increased by inflation and growth of gross domestic product. Based on those two criteria the growth of the provincial minimum wage for 2019 was fixed at 8,03%. While KSBSI is not in favour of Regulation 2015/78, as it prevents the trade unions from fully freely negotiating minimum wages such as foreseen by the ILO Minimum Wage Convention, it does not believe that in the current political constellation the regulation can be overturned in the short term. Currently KSBSI focuses in its training for local union leaders, activists and members on the implementation of the wage scale structure, as October 2017 was the deadline for companies to register their wage structure at the Labour Department. However, most Indonesian employers are still not aware about their obligation to determine a structure and scale of wages in the company taking into account the class, position, period of employment, education level and competence of the employees. Seen the limitations that have been imposed to the regular minimum wage negotiations, the trade unions see the wage scale structure regulation as a way to differentiate wages at company level, so that at least at plant level it will be possible to still negotiate higher wages. The workers should be informed of the wage scale structure in their company.
Mr. Ali Hanafiah was born in Palembang, on 8 July 1969. He graduated from STIH Sumpah Pemuda University in 2010. He is the regional coordinator of KSBSI in South Sumatra. Before he was the chairperson of KSBSI at plant level for 2 years and chairperson of the branch board of NIKEUBA (KSBSI’s service sector federation) for 12 years. Currently he is a member of the provincial wage council and vice chairperson of the tripartite social dialogue at province level as a representative for the workers.Political, economic and social context
In 2018 Indonesia’s economic growth tended to be stable at about 5%. Increasing religious sentiment, abused by Islamic fundamentalists, stirred up fears that conservative parties would claim victory in the regional elections, thus also influencing the national elections in April 2019. Identity and religious politics risk to divert attention from the agenda of economic development, prosperity and social welfare that is being promoted by the current Indonesian administration under President Joko Widodo. On 28 September an earthquake and tsunami hit Palu and Donggala in Central Sulawesi, killing 2.113 and injuring 4.612 people. Both KSBSI and SBMI provided immediate assistance to their members in the area and the families who became victim of the tsunami.
Minimum wages, wage scale structure and social security
Since presidential regulation 2015/n°78 was adopted, yearly minimum wages in Indonesia (set at provincial or district level) can only be increased by inflation and growth of gross domestic product. Based on those two criteria the growth of the provincial minimum wage for 2019 was fixed at 8,03%. While KSBSI is not in favour of Regulation 2015/78, as it prevents the trade unions from fully freely negotiating minimum wages such as foreseen by the ILO Minimum Wage Convention, it does not believe that in the current political constellation the regulation can be overturned in the short term. Currently KSBSI focuses in its training for local union leaders, activists and members on the implementation of the wage scale structure, as October 2017 was the deadline for companies to register their wage structure at the Labour Department. However, most Indonesian employers are still not aware about their obligation to determine a structure and scale of wages in the company taking into account the class, position, period of employment, education level and competence of the employees. Seen the limitations that have been imposed to the regular minimum wage negotiations, the trade unions see the wage scale structure regulation as a way to differentiate wages at company level, so that at least at plant level it will be possible to still negotiate higher wages. The workers should be informed of the wage scale structure in their company.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.