JAKARTA. Labor organizations have prepared a number of legal steps to pursue their targets of the increase in the Provincial Minimum Wage (UMP). Aside of waiting for the decision of judicial review over Government Regulation (PP) No. 78 of 2015 on Remuneration, they are also preparing a lawsuit to the State Administrative Court.
The lawsuit itself reflects the labors’ anxiety on the determination of UMP, of which the labors considered too low and did not meet the labors’ aspiration.
According to the result of KONTAN’s research, most of head of local governments determined the UMP adjustment at the level of 8% in accordance with the formulation of wages calculation set under the Government Regulation on Remuneration. As an information, the government regulation sets the increase in UMP by summing the 3% inflation rate of this year with the 5% economic growth.
President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal mentioned that the organization is still waiting for the decision of judicial review over Government Regulation (PP) No. 78 of 2015 on Remuneration. Two weeks ago, the Supreme Court (MA) has decided to prosecute a lawsuit on the judicial review over the regulation, mainly the article 44.
The labors filed the judicial review on December 10, 2015. The judicial review mainly targeted article 44, which consists of three paragraphs related to minimum wage calculation formula. Paragraph (1) stipulates that the determination of minimal wage shall be calculated by using a formula of calculation of minimum ages. Paragraph (2), the minimum wage calculation formula is: UMn = UMt + {UMt x (Inflation + % GDPt). UM itself is Indonesian acronym for Minimum Wages.
And (3), further provisions concerning the calculation of minimal wage by using the formula as cited in paragraph (2) shall be regulated under a Ministerial Regulation. However, "To date, there has been no decision," Said told KONTAN on Sunday (6/11).
According to him, PP No.78 / 2015 had violated Law No. 13 of 2003 on Manpower, on the grounds that the regulation has eliminated the bargaining rights of trade unions, as well as set an increase in minimum wages unilaterally by the central government.
It also ignores the Law No 21/2000 on Trade Unions, as well as the ILO Convention number 87, 98, and 131. The regulation has eliminated the authority of the governor in setting UMP through negotiations with the wages board. Article 89 of the Labor Law also stipulates that the minimum wages are determined in each province or regency/municipal and decided by governor by respecting the recommendation from Provincial Wages Board and/or head of regency/mayor.
Meanwhile, the ILO convention, which has been ratified by Indonesia, stipulates that government in creating regulations related to manpower should involve the workers through a tripartite forum consisting of employers, government, and workers.
Said claimed that Government Regulation No.78 / 2015 has impoverished the workers and poor people to protect major investors and foreign interests "While waiting for the Supreme Court decision, the workers will strike at the regional and national levels to reject the policy in cheap wages and the Government Regulation No.78 / 2015," he said.
Furthermore, Said added that the calculation of the 2017 minimum wages is also absurd. For an example, the Governor of Jakarta has decided an amount of IDR3.3 million per month for 2017 Jakarta Provincial Minimum Wages (UMP). On the other hand, 2016 minimum wages of Karawang had reached IDR3.3 million per month, whereas the life necessities in Jakarta are three times higher than in Karawang.
Aside of striking, labors will undergo other law steps regarding this matter. According to the President of Indonesian Labors Unions Associations Mirah Sumirat, the labors will file a lawsuit over this matter to the State Administrative Court (PTUN) in December 2016, on the grounds that the judicial review at the Supreme Court has not yet indicated significant progress. Let alone, the legal process at PTUN can run in a parallel manner with the process at the Supreme Court.
