State companies accused of exploiting Indonesian workers

Publication date: 15-03-2013

 

An Alliance of trade unions in Indonesia, the exploitation of the workers on different public companies, demand that the Government put an end to such practices and to make the companies to comply with the existing labour law force.

The trade unions also criticized the targeting of trade unions at State enterprises, adding that the companies a good example for the private sector should be set.

The Alliance, Geber BUMN, consists of the Indonesian workers Organization (ÓPSI), Indonesian workers Union Association (Aspek), unity of action for Indonesian workers (K), Indonesian power company (PLN) Workers Union and the Federation of Merpati employees (FPM).

The accused State-owned enterprises, including PLN, Pertamina and story of violating the regulations on outsourcing and dismantling of trade unions in an effort to exploit workers and enrich corrupt officials within the State companies.

ÓPSI President s. Tapiv, spokesman for the Alliance, said that according to the Alliance's fact finding team, the management of large State-owned enterprises (SOEs) work had been transferred to their own outsourcing companies for the sake of "efficiency" or minimise labour costs. Union members who oppose the practice were eventually dismissed, Tapiv added.

"Violations of the legislation on outsourcing are rampant and systemic PT Telkom, PT Pertamina, PT PLN, PT Merpati Nusantara, PT Perum Peruri, PT and PT ASDP story. The SOEs have their own subsidiaries take on certain jobs in violation of the labour law, "he said after meeting with the Commission IX labor and Health Affairs at the House of representatives this week.

Tapiv said the subsidiaries had hired workers and contract them in service. The workers were paid under the provincial minimum wages and not with State-owned insurance company PT Jamsostek were recorded.

"The agreements be extended every two years, give no assurance or labor employment protection ... employees can not develop their career employment under such a system," he said.

Citing an example, he said PT Graha Ruhtinasbarbi Duta (PT GSD), fully owned by PT Telkom, had their employees without any collective agreements. The workers were underpaid and several members of the Union were fired for opposing the practice.

He led PT Telkom had earned 81.6 billion rupiah (US $ 8.4 million) in annual revenue of 6,805 underpaid guards working in all branches nationwide and the profits were supposed to have been distributed under the management because the privately held company had never reported the income.

Aspek Secretary-General Shabd Djati Pranawa called a number of violations by PT GSD to which both the ministers of the State enterprises and manpower and transmigration had turned a blind eye.

Separately, stresses Iskandar, Secretary of the Directorate of labour relations matters on the manpower and transmigration Ministry, that the major government officials and their subsidiary companies ignored working conditions, industrial relations and labour legislation by jobs to subsidiaries.

Poempida Hidayatullah and Surya Chandra Surapati, members of the House of the labor and Health Affairs Committee, criticized State-owned enterprises Minister Dahlan Iskan, who they said was too busy branding themselves for the presidential elections of 2014 to deal with the labour exploitation in State-owned enterprises.

* US $ 1 = 9, 727 rupiah

 

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