JAKARTA. Labor unions in Bekasi, West Java, showed who held power on Friday by bringing some 3,000 factories in the industrial base to a screeching halt in protest of a court ruling that annulled a gubernatorial decree on increased minimum wages.Tens of thousands of Bekasi workers took their anger to the streets and blocked the Jakarta–Cikarang toll road access to Bekasi from Kilometer 21 to Kilometer 26, paralyzing economic activity in the region.“We are blocking access to the industrial areas to cut the supply and distribution to and from factories,” Yanto, a protester, told The Jakarta Post on Friday.Women’s Empowerment and Child Protection Minister Linda Gumelar, who happened to pass the toll road with her entourage that day, was later rescued by a police helicopter.Cikarang Barat Police chief Comr. Zulham Effendy said that 2,500 police officers from Bekasi and the Jakarta Police, including the Mobile Brigade (Brimob), had been deployed to secure the demonstration.Despite the large turnout, the protest ended in the afternoon without chaos. The workers were appeased by an emergency meeting with representatives of the Indonesian Employers Association (Apindo) in Jakarta that ended in their favor.The meeting, which was directly supervised by Coordinating Economic Minister Hatta Rajasa and Manpower and Transmigration Minister Muhaimin Iskandar, saw Apindo bowing down to political pressure brought about by angry workers.A statement issued after the meeting said that the government, Apindo and the workers agreed on a wage increase that was only slightly lower than that issued by the West Java government for workers in Bekasi regency.The agreed standard for minimum wages for the 2012 fiscal year is as follows: Rp 1,491,000 for general workers, Rp 1,715,000 for industrial workers Category I and Rp 1,849,000 for Category II. Previously, the West Java administration set Rp 1,491,866, Rp 1,715,645 and Rp 1,849,913 for respective categories.Earlier this month, Apindo filed a lawsuit with the West Java State Administrative Court in Bandung refusing the roughly 16 percent wage increases set by the provincial government. Apindo argues the West Java administration had abused its power by disregarding a salary valuation submitted by the National Wage Council (DPN), which suggested a 10 percent increase in 2012 salaries. The court accepted the argument and issued a ruling on Thursday, annulling the West Java decree on new salary increases. The massive rally on Friday was expected to trigger a backlash.With an agreement signed between Apindo and labor unions in Jakarta, the central government demanded West Java adhere to the court ruling by issuing a new decree that would adhere to resolutions from the Friday meeting.Manpower Minister Muhaimin has urged companies in Bekasi to abide by the Friday agreement and pay wages accordingly. “Those who are financially incapable of paying should propose a formal request for postponement,” he said.The new deal between factory owners and their workforce has been seen as a breakthrough, considering the heavy consequences from a prolonged demonstration on the country’s economy, and not to mention its potential to spark riots. The deal, however, is feared to take its toll on investment in Indonesia.Apindo, backed by the Indonesian Chamber of Commerce and Industry, estimates that 100,000 workers might lose their jobs and potential investments worth US$2 billion would ensue should the recent wage increase be maintained. Political analyst Yunarto Wijaya said the power of the labor union is on the rise and could easily be turned into a political commodity, especially by government opposition.“All of these rallies portray the SBY-Boediono government as the enemy of the proletariat, who has failed to take sides with the interests of the small men. If this situation continues, then it will severely impact SBY’s image in foreign investors’ eyes,” Yunarto said. (The Jakarta Post)
Industries yield to labor power
JAKARTA. Labor unions in Bekasi, West Java, showed who held power on Friday by bringing some 3,000 factories in the industrial base to a screeching halt in protest of a court ruling that annulled a gubernatorial decree on increased minimum wages.Tens of thousands of Bekasi workers took their anger to the streets and blocked the Jakarta–Cikarang toll road access to Bekasi from Kilometer 21 to Kilometer 26, paralyzing economic activity in the region.“We are blocking access to the industrial areas to cut the supply and distribution to and from factories,” Yanto, a protester, told The Jakarta Post on Friday.Women’s Empowerment and Child Protection Minister Linda Gumelar, who happened to pass the toll road with her entourage that day, was later rescued by a police helicopter.Cikarang Barat Police chief Comr. Zulham Effendy said that 2,500 police officers from Bekasi and the Jakarta Police, including the Mobile Brigade (Brimob), had been deployed to secure the demonstration.Despite the large turnout, the protest ended in the afternoon without chaos. The workers were appeased by an emergency meeting with representatives of the Indonesian Employers Association (Apindo) in Jakarta that ended in their favor.The meeting, which was directly supervised by Coordinating Economic Minister Hatta Rajasa and Manpower and Transmigration Minister Muhaimin Iskandar, saw Apindo bowing down to political pressure brought about by angry workers.A statement issued after the meeting said that the government, Apindo and the workers agreed on a wage increase that was only slightly lower than that issued by the West Java government for workers in Bekasi regency.The agreed standard for minimum wages for the 2012 fiscal year is as follows: Rp 1,491,000 for general workers, Rp 1,715,000 for industrial workers Category I and Rp 1,849,000 for Category II. Previously, the West Java administration set Rp 1,491,866, Rp 1,715,645 and Rp 1,849,913 for respective categories.Earlier this month, Apindo filed a lawsuit with the West Java State Administrative Court in Bandung refusing the roughly 16 percent wage increases set by the provincial government. Apindo argues the West Java administration had abused its power by disregarding a salary valuation submitted by the National Wage Council (DPN), which suggested a 10 percent increase in 2012 salaries. The court accepted the argument and issued a ruling on Thursday, annulling the West Java decree on new salary increases. The massive rally on Friday was expected to trigger a backlash.With an agreement signed between Apindo and labor unions in Jakarta, the central government demanded West Java adhere to the court ruling by issuing a new decree that would adhere to resolutions from the Friday meeting.Manpower Minister Muhaimin has urged companies in Bekasi to abide by the Friday agreement and pay wages accordingly. “Those who are financially incapable of paying should propose a formal request for postponement,” he said.The new deal between factory owners and their workforce has been seen as a breakthrough, considering the heavy consequences from a prolonged demonstration on the country’s economy, and not to mention its potential to spark riots. The deal, however, is feared to take its toll on investment in Indonesia.Apindo, backed by the Indonesian Chamber of Commerce and Industry, estimates that 100,000 workers might lose their jobs and potential investments worth US$2 billion would ensue should the recent wage increase be maintained. Political analyst Yunarto Wijaya said the power of the labor union is on the rise and could easily be turned into a political commodity, especially by government opposition.“All of these rallies portray the SBY-Boediono government as the enemy of the proletariat, who has failed to take sides with the interests of the small men. If this situation continues, then it will severely impact SBY’s image in foreign investors’ eyes,” Yunarto said. (The Jakarta Post)