Nearly 50,000 factory workers have been on strike in over 30
actions in one district of West Java alone in the past 6 weeks, bringing
the number of strikes for 1992 to 130. At the centre of the worker's demands
is reasonable wages. The government is trying to dismiss the actions as
illegal, blaming „third parties“ for stirring up trouble. The presence
of security forces has been intensified to quell the strikes and mollify
foreign investors disturbed at the militancy of their „docile“ workers.
„Shoe factory workers run amok“ ran the headline in the Indonesian daily Merdeka (29.09.92). Referring to the 8,000 workers from two shoe factories in West Java who went on strike, this is just one example of the recent proliferation of factory strikes which have been taking place all over Java.
The press reports strikes daily. The majority are taking place in West Java, in the Tangerang and Bekasi industrial regions outside Jakarta. The statistics are quite phenomenal. In September and October 1992, there were 33 strikes recorded in Tangerang alone, the October total of 17 exceeding the total in September (Jakarta Post 17.10.92). Between January and October this year, according to official figures, 82 strikes have been recorded in Tangerang, involving over 45,000 employees, making it the most strike prone area in Indonesia beside Bekasi, which recorded 52 strikes in the same period (Kompas 6.11.92)
Minister under pressure
Traditionally the attitude towards Indonesian workers is patronising and dismissive. „Workers—are actually a docile people who respect their elders and leaders... Besides being very docile, [they] are also easily trainable to do manual jobs“ (Jakarta Post, editorial, 14.11.92). „(The) puzzling question as to how the workers could turn into a highly agitated and militant mob,“ ponders the author.
In the past, strikes have been water off the government's back. The 27 year ban on strikes was lifted by the Ministry of Manpower in 1990; by the end of 1991 only 180 strike actions were recorded and minimal government comment. The current explosion of workers' frustration and discontent is unprecedented and has clearly shaken the government. Minister of Manpower Cosmas Balubara is now trying to control the situation by wielding government authority, revealing the increasing pressure felt by the government.
Cosmas now says that most of the recent strikes are illegal because „workers may only resort to a strike after the manpower office's special team in charge of the settlement of disputes fails to resolve the case and gives them the green light to go-ahead“ (Jakarta Post 12.11.92). All other „wildcat“ strikes are illegal. Cosmas implored workers with grievances to send him a letter and he would discuss it with the company concerned. Yet letters sent by the Legal Aid Foundation (Jakarta) and others to the ministry remain unanswered (Jakarta Post 10.11.92). As Nursyahbani Kacasungkana of LBH Jakarta pointed out, „If the workers can directly discuss their problems with the companies, why should the ministry be involved?“ (Jakarta Post 10.11.92). Cosmas also blamed the workers for disrupting economic growth and weakening Indonesia's competitive edge in the global marketplace (Jakarta Post 9.11.92). But economic development has not improved the financial conditions and welfare of the workers. „Things are the same for the labourers. They suffer all the time, even when the country enjoys economic growth,“ Kacasungkana said.
Cosmas has also alleged that the activities were organised by „third parties“. The LBH and others strongly reject this, stating that the strikes „reflect growing legal awareness among workers“ (Jakarta Post 10.11.92).
Central Java's governor, (ret'd) General HM Ismail, facing a wave of strikes in his own region, also pins the blame on „third parties“. He warned that they will be „crushed“ at the appropriate moment, and complained that the strikes have disrupted our „calm weather“. (Jawa Pos, 7.XI.1992)
Economic demands
While the demands made by the striking workers are many, at the heart of the issue are wages. The Ministry of Manpower raised the basic minimum wage from Rp2,100 (US$1.03) to Rp2,600 (US$1.27) a day from 1 September 1992 (Surat Keputusan Menaker 264/MEN/1992). Many workers have resorted to strike action because company bosses have still not complied with the minimum wage, while others protest that the minimum wages are not adequate to meet their basic physical needs.
Cosmas himself recognises that the minimum wage (which he increased in July 1991) does not accord with the stipulations of the 1945 Constitution that every citizen has the right to a reasonable livelihood, acknowledging that the minimum wage was only 65 per cent of that required to meet basic needs (Demokrasi masih terbenam, Legal Aid Institute, Jakarta, 1991 p 135).
Cosmas told students in Central Java this year that he hoped that companies would pay more than the minimum wage. „Businessmen who adhere to the minimum wage... should not feel they are doing something that deserves praising, because the rate they are paying is the lowest allowed by the government.“ (Jakarta Post 14.09.92).
On 3 November, the Ministry of Manpower suddenly announced an increase in the minimum wage of Jakarta to Rp 3000 as from 1 January 1993. A hike was not due yet and it shows a desperate „attempt to curb the spate of strikes. Yet the sum still fulfils only 91 percent of workers minimum physical needs and only 75 percent of workers' minimum living needs at mid-1992 rates. The ministry admitted that the minimum needed to meet physical needs was Rp 6000 per day, double the new minimum wage! (Jakarta Post 9.11.92).
Keeping the investors happy
The reality is of course that the employers will pay as little as they can and many do not even pay the minimum wage, let alone more. For foreign investors, such as Nike Shoes in West Java (see below), Indonesia is attractive precisely because of the availability of cheap labour. In 1990, compared to other countries in Asia, Indonesia had the lowest minimum wage after Bangladesh. The Minister's statements that he „hopes“ companies, which currently pay their workers no overtime, no sick pay, no holiday pay and use child labour, will pay more than they are obliged to, is hypocritical whitewash.
This is a highly political issue. As the LBH point out, only the government has the power to fix the minimum wage and it is the government which is keeping the minimum so low. According to a high ranking official in the ministry, this has been done to protect investors (LBH, 1991, p l38). Cosmas therefore wants to keep wages low knowing only too well that that companies will not pay their workers more than the minimum wage he sets.
30% of worker's needs
Even the existence of a minimum wage is ignored by the majority of employers. The Tangerang SPSI branch found that out of the 12,000 factories in Tangerang, only 30 to 40 percent paid the minimum wage. An SPSI and American Asian Free Labour Institute (AAFLI) study in 1989 found that 56 per cent of companies contravened the minimum wage regulations. (LBH, 1991 p 136).
Since July 1991, the government has raised the minimum wage, which varies
from region to region, by around 200 per cent. Yet it still does not even
fulfil the basic physical needs of the workers. According to the SPSI/AAFLI
study, the minimum wage of Rp 2,600 in Jakarta only fulfils 31 percent
of the basic physical needs of a worker with a spouse and two children
(LBH, 1991 p l34). At the end of 1989, Dewan Penelitian Pengupahan Nasional
(National Wage Studies Council) calculated basic physical needs, in terms
of income, as being:
These figures are calculated in terms of the minimum calorific intake
required for sustenance. As the LBH point out this is not humane as it
takes no account of mental and spiritual needs and treats people essentially
as robots. To provide a reasonable existence, the Tangerang branch of the
SPSI estimates that a single man should earn approximately Rp 95,000 (LBH,
1991 p l34).
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