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Workers should improve performance: Minister

Jakarta Post - November 24, 2014

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Jakarta – Manpower Minister Hanif Dhakiri says he is fully aware of workers' demands for wage increases following the recent increase in the price of subsidized fuels; however, he said, the wage increases should be adjusted with the quality of the workers' work performance.

"Workers' wages must be paid before their sweat dries. At the same time, the workers must increase their work productivity. They should not work in whatever way they like," he said as quoted by kompas.com in Jakarta on Monday.

Workers in several regions across Indonesia have staged protest rallies to demand wage increases following the government's policy to increase subsidized fuel prices, which took effect on Nov.18.

The new price of Premium gasoline is Rp 8,500 (70 US cents) per liter, up from Rp 6,500, while diesel sells for Rp 7,500, up from Rp 5,500 per liter.

Hanif said the ministry would urge businesspeople to increase incentives, such as transportation and meal expenses for their workers, the amounts in line with the financial capacity of each company. He urged bipartite forums to work more effectively in negotiating the workers' wage-increase demands.

"The dialogue must run better. All this time, during bipartite forums, representatives of related parties just come and sit, and then they are engaged in bargaining with their counterparts individually. Let's pull all of these together with their rights and responsibilities," said Hanif.

The minister further said businesses might suffer losses if their workers continued to demand wage increases. The ministry had attempted to anticipate this by examining thoroughly the components of basic needs, such as housing and clothing, of Indonesian workers.

"We must pay close attention to components of the expenses of workers, such as housing, clothing, transportation, health and education. We should not focus only on how to increase their incomes but how to minimize their expenses," said Hanif.

Among solutions being discussed are providing affordable accommodation near workplaces so that workers can save on transportation costs.

Hanif said he would coordinate with related parties to realize the plan so that there was a solution not only for the workers but also for the employers. "We want to invite all stakeholders in employment in Indonesia and urge them to no longer concentrate on wage increases as the one and only solution to labor issues," Hanif said. (ask/ebf)

Source: http://www.thejakartapost.com/news/2014/11/24/workers-should-improve-performance-minister.html.