Kompas -
December 24, 2010
Jakarta –
The number of permanently employed workers in the formal sector is steadily
declining and currently stands at only 35 percent of all formal workers. This
has occurred in concert with Law Number 13/2003 on Labour (UU No 13/2003),
which allows for the employment of contract labour from other companies, or
outsourcing.
In Jakarta
on Thursday December 23, the general chairperson of the Confederation of
Prosperity Labor Unions (KSBSI), Rekson Silaban, said that out of the 33
million workers in the formal sector, only 35 percent have the status of
workers or permanent workers.
Indonesian
Employers Association (Apindo) General Chairperson Sofjan Wanandi was shocked
by the data. "That means that the number of permanent workers is steadily
declining. Prior to UU No 13/2003 coming into effect, the number of permanent
workers in the formal sector was 67 percent", said Wanandi.
He explained
that this situation has occurred because prevailing legislation allows it.
"I once asked an employer, why so much outsourcing? They replied, why not
it's allowed under law. This is a gloomy reflection on the end of the
year", said Wanandi.
The way to
end outsourcing, said Wanandi, is by revising the labour law. The Indonesian
Institute of Science (LIPI) is currently putting together a draft revision to
the law. This was on the request of three parties, namely employers, the
government and workers. "So, if there is a draft circulating at the
moment, it's bogus", said Wanandi.
Yesterday,
the PT Telkom Indonesia Outsourced Employees Association, through a written
statement, asked the state-owned telecommunication company PT Telkom Indonesia
to temporarily stop cooperating with PT Intracotama Daya Perdana, in this
instance PT Mitra Nusantara Fonindo, as the outsourcing service provider to PT
Telkom.
The request
was related to the dismissal of 141 employees on March 22 without the
obligatory payment of employees' normative rights in accordance with the labour
law.
Silaban also
revealed that 75-80 of cases related to workers' severance pay in the
Industrial Relations Court end in negotiations. "Meaning, workers loose
out because they accept lower severance pay that regulated by UU No
13/2003," he said. (idr)
[Translated
by James Balowski.]
