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East Java likely to turn down workers' wage-increase demand
Jakarta Post - November 14, 2014
East Java Vice Governor Saifullah Yusuf claimed it would be difficult to agree to the proposed increase, which he argued was too high and would burden employers.
"Workers are entitled to make proposals, but the investment climate in East Java must be maintained," Saifullah said after meeting workers' representatives at the Grahadi State Building in Surabaya on Thursday.
He went on to argue that the demand of Rp 3 million was unreasonable, as the current UMK in Jakarta was only Rp 2.75 million. "The increase in the UMK should be around 12 percent," he said.
Saifullah said the final say on the UMK should be given to regents and mayors, as they best understood the manpower situation in their respective areas.
Currently, he said, the mechanism used to set the UMK was based on an assessment of the basic cost of living (KHL) carried out by local remuneration councils, consisting of representatives from workers, government and employers.
The KHL at the regency and city level is often subject to debate, with labor unions and local chapters of the Indonesian Employers Association (Apindo) presenting separate, differing assessments.
"Consequently, regents and mayors often submit two different proposals for the UMK to the provincial remuneration council, one from the unions and one from Apindo. The regencies and cities should determine the amount and the governor will approve it," he said.
On Thursday, thousands of workers from various industries rallied in front of the Grahadi State Building, demanding that the municipal administration grant their Rp 3 million wage demand.
Surabaya Mayor Tri "Risma" Rismaharini, said her administration would still propose two levels of UMK from Apindo and the unions to East Java governor Soekarwo.
"Initially, the government proposed a figure of Rp 2,588,000, but as both Apindo and the unions rejected it, I was forced to submit two separate proposals to the governor. So it's up to the governor to decide the UMK," said Risma.
Apindo's Surabaya chapter proposed that the city UMK be set at Rp 2,206,000, a mere Rp 6,000 increase from the 2014 UMK, while the workers' representatives proposed a figure of Rp 2.84 million, an increase of Rp 640,000 from the previous UMK.
Meanwhile, in Sukabumi, West Java, workers affiliated to the Sukabumi regency chapter of the Textile, Garment and Leather Workers section of the Indonesian Workers' Union (TSK SPSI) welcomed the city's proposal to set the 2015 UMK at Rp 1.94 million.
"We hope the 2015 UMK set by Sukabumi Regent Sukmawijaya, which will be proposed to West Java Governor Ahmad Heryawan, will not be changed," TSK SPSI leader M. Popon told Antara news agency.
According to Popon, the regent's decision to raise the UMK from Rp 1.56 million this year to Rp 1.94 million was commendable, as it was higher than the KHL, which was set at Rp 1.7 million. The move, he said, showed that the regent would not accept low wages.
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