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#50594 - 01 May 07 14:18 TEMPO/Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss
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Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss
Tuesday, 01 May, 2007 | 12:23 WIB

Tempo Interactive, Jakarta: Minister of Manpower and Transmigration, Erman Soeparno, said that the provision about outsourcing (sub-contract) workers in the Manpower Decree No. 13/2003 must be reviewed because it causes workers and laborers to suffer losses. The Article does not regulate the provision that a new company must extend the laborers’ contract after two years time.

“Many of the laborers’ contracts were not resumed and in the end they lost the job,” said Erman during an official visit to Pulogadung industrial zone, yesterday (30/4).

He said the Manpower Decree should have regulated the sanction for companies that do not extend the laborers’ contracts. “So that companies do not act arbitrarily,” he said.

In addition, the law must not regulate a company’s obligation to establish workers as permanent employees after the two-year contract term is due. As a result, companies often do not resume the contract.

Head of the Indonesian Prosperous Trade Union Confederation, Rekson Silaban, agreed that the provision on outsourcing contracts is reviewed. The Decree No. 13/2003, he said, still needs many Government Regulations. “There hasn’t yet been the detailed regulation, including about the companies’ reserves funds,” he said.

He also asked that the regulation on Workers’ Social Security be revised, especially the policy of unemployment and severance pay. In addition, the government needs to guarantee the use of the industrial relations court.

Ninin Damayanti
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#50610 - 01 May 07 15:16 Re: TEMPO/Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
so as manufacturing companies flock to China, India and Vietnam the Manpower department finds another reason for companies to create jobs somewhere else
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Edited by Piss Salon
Edit Reason: taste

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#50613 - 01 May 07 15:27 Re: TEMPO/Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss [Re: chewwyUK]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
you were reading my mind, glasshopper...
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#50615 - 01 May 07 15:53 Re: TEMPO/Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
I know of a number of Multi-nationals who have decided to keep manufacturing levels at the same level or reduce them in Indonesia because of the Manpower here. There are still concerns about quality at a global level as well as reservations about the overly protective manpower regulations. Even more concerning is that global and regional head offices are starting to complain about the cost of employing white collar workers and the Indonesian salary demands of 30% increases when changing jobs.

The Gap between pay for Local top management and Expat management is getting very narrow. If the trends continue we could see a number of players leaving Indonesia.
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Edited by Piss Salon
Edit Reason: taste

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