Workers protest in demand of increasing the minimum wage and omnimbus law.
The Confederation of Indonesian Trade Union (KSPI) will conduct waves of protest simultaneously in 26 provinces in Indonesia. The action will be held on 10 November in each regional legislative office (DPRD). Meanwhile, the protest in Jakarta will be centered at the City Hall of DKI. In prediction, there will be around 500 to 1,000 demonstrate.
There are four demands asked by the protesters. Starting from demands for a 2022 wage increase to the revocation of the omnibus law of “Undang Undang Cipta Kerja”.
- Increase the UMK and 2022 UMP by 7 to 10 percent.
- Apply sectoral minimum wages, namely UMSK 2021 and UMSK 2022.
- Cancel, or revoke the omnibus law of “Undang-Undang Cipta Kerja”.This process should be done within the next one or two weeks of formal trial. Revoke the Employment Creation Act, especially the labor cluster.
- PKB or collective labor agreement without omnibus law
Wage-setting aims to create a fair wage system for all parties to achieve the welfare of workers and laborers. Even so, the determination of the minimum wage considers the capabilities of the company. Furthermore, it also depends on the condition of the national economy.
What is UMP and UMK ?
In determining wages in Indonesia, there are several schemes that could be applied. This will affect the number of wages that workers receive from employers. The amount depends on each region which generally adjusts to the prices of basic needs, inflation rates, living standards, and other variables.
The minimum wage that employers pay to these workers is generally set once a year.
The increase in the minimum wage is discussed jointly between the government, employers, and workers or better known as tripartite.
Previously, the minimum wage is commonly known as “UMR”. There are UMR Level 1 and UMR Level 2. The former is determined by the governor at the provincial level. The latter is the minimum wage standard applicable at the district/city level. This standard wage is proposed by the regent or mayor to the governor.
The term UMR was then replaced with UMP and UMK. Even though in practice it is no longer used, the term UMR is still often used for mentioning the minimum wage. Some people often refer to the UMR rather than using the UMP and UMK.
Through the Decree of the Minister of Manpower and Transmigration No. 226 of 2000, the Level I UMR was changed to the Provincial Minimum Wage (UMP). Meanwhile, the Level II UMR was changed to the Regency/City Minimum Wage (UMK).
If a district/city has not been able to propose the minimum wage rate, the governor will use the UMP as a reference for the provision of wages in that district/city.
What is the problem of “Undang-Undang Cipta Kerja?”
A Number of Substances of the “Undang- Undang Cipta Kerja” are considered to be a disadvantage for workers. Those are:
- The Wage policy shows uncertainty in setting low wages
For example, the “Undang-Undang Cipta Kerja” Article 88C paragraph (1) of Law No. 13 of 2003 concerning Manpower states that the Governor can set the Regency/City minimum wage (UMK) with certain conditions. The phrase “can” in this provision is considered very detrimental to workers because the determination of the UMK is not mandatory.
- Abolition of the contractual working relationship time limit
The abolition of the working relationship time limit through a certain time work agreement (PKWT) has the opportunity to cause the status of workers to continue to be PKWT forever
- No restrictions on the types of work that can be outsourced
This is because the “Undang-Undang Cipta Kerja” abolishes Articles 64 and 65 of the Manpower Law. As well as removing 5 types of work that can be outsourced. Those are cleaning services, catering, security, drivers, and oil support services.
This means that all types of work can be outsourced, both supporting and primary work.
- The amount of severance pays for workers who have experienced termination of employment (PHK).
This law reduced it from 32 to 25 months’ wages.
- Making layoffs mechanism easier
The law eliminates the phrase “Batal demi Hukum” (cancelation in the name of the law) in the provisions of the Manpower Law. This regulates layoffs that have not been determined by the industrial relations dispute settlement agency.