Labor Unions to Sue Employers Insisting on Using PP 36 of 2021 to Determine Wage
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21 November 2022 23:57 WIB
TEMPO.CO, Jakarta - The President of the Indonesian Labor Unions Confederation (KSPI) Said Iqbal, said that he would sue employers who insist on using Government Regulation (PP) 36 of 2021 concerning Wages to determine the minimum wage for workers.
"We will press charges. I will take it to court because that is embezzlement of employee salary", Said Iqbal said in a virtual press conference on Sunday, November 20, 2022.
The government through the Manpower Ministry has issued a new regulation, namely the Minister of Manpower Regulation (Permenaker) No. 18 of 2022 concerning the stipulation of the minimum wage for 2023. In this regulation, the minimum wage is set to increase by a maximum of 10 percent.
Consequently, if employers continue to use the formula in Government Regulation No. 36 of 2021, workers' salaries will be less than in the new regulation.
Furthermore, Said is confident that the Minister of Manpower Ida Fauziyah, and the Director General for Development of Industrial Relations and Social Security for Workers, Indah Anggoro Putri, will act decisively and render punishment employers continue to use Government Regulation No. 36 of 2021 as a reference to determine the minimum wage.
"I am very sure both of them are supple but assertive, so they will be firmly dealt with," Said Iqbal said.
Meanwhile, the Indonesian Employers' Association (Apindo) stated that they would file a lawsuit regarding the new minimum wage regulation. Apindo's Head of Manpower, Antonius Joenoes Supit, questioned the policy regarding the increase of UMP. "If a ministerial regulation is not in line with the law or PP, is it right or wrong? That's all," he said when contacted on Sunday, November 20, 2022.
Nevertheless, Antonius said his association would still hold internal discussions to discuss the next steps for the ministerial regulation. "We will discuss this internally. I just happen to be out of town," he said.
The government decided to increase the provincial minimum wage (UMP) and district and city minimum wages (UMK) for people's purchasing power. "Purchasing power is represented by the inflation rate and economic growth variable which is created from productivity and indicators of expanding employment opportunities," said Ida Fauziyah in a YouTube video from the Manpower Ministry Channel uploaded on Saturday, November 19, 2022.
According to Ida, currently, the socio-economic conditions of society have not fully recovered due to the impact of the Covid-19 pandemic. Purchasing power has also decreased in line with global economic uncertainty which has implications for suppressing the pace of national economic recovery. Even though the structure of the national economy is largely contributed by public consumption. So the recovery is heavily influenced by purchasing power and price fluctuations.
Because of this, the government no longer uses Government Regulation (PP) 36 of 2021 concerning Wages as a reference because it is considered unable to accommodate the impact of the socio-economic conditions of the community. In this regulation, the determination of the minimum wage is not balanced with the rate of increase in the prices of goods.
"There is concern that it will result in a decline in workers' purchasing power to occur again in 2023," said Ida.
RIANI SANUSI PUTRI l IMAJI LASAHIDO
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