KSPI Demands Better Wage Labor Formula
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27 December 2018 10:59 WIB
TEMPO.CO, Jakarta - The Indonesian Labor Union Confederation (KSPI) called for the government to revoke Law No. 78/2015 (PP 78) that oversees labors` wage, which KSPI president Said Iqbal said shows support for a cheap labor regime.
“The regime that pays its labor cheap was only the Soeharto regime, where it was completely state-controlled,” Said Iqbal compared.
The KSPI president acknowledged that Soeharto’s era saw wages steadily increasing each year according to its minimum physical needs, which Said Iqbal deems similar to what is currently happening. “However, the PP 78 enabled the state to rob labors union’s right to negotiate with entrepreneurs association,” he said.
According to Iqbal, the Article contained within the Law completely takes away the opportunity for labors to negotiate with entrepreneurs since determining the minimum wage is based solely on inflation and economic growth.
Meanwhile, Head of the Central Statistics Agency (BPS) Suhariyanto previously claimed that the agency’s survey on March 2018 saw labors` wage increase by 0.43 percent. This, he said, is parallel to the 0.12 percent inflation rate that is below the nominal wage.
CHITRA PARAMAESTI
