ADVERTISEMENT

Employers resist workers' calls for higher wages

"The economy is slowing and companies all over the country are already either closing down or cutting jobs," said Hariyadi Sukamdani, head of the Indonesian Employers Association.

Indonesian employers resist workers' calls for higher wages

An Indonesian employers association labelled workers' demands for steep annual wage hikes as "unrealistic" on Tuesday, and warned there could be more layoffs at companies struggling amid a slowdown in Southeast Asia's largest economy.

Labour-intensive sectors like manufacturing and mining have shed thousands of jobs in recent months as economic growth in the second quarter slowed to its weakest pace in six years.

"The economy is slowing and companies all over the country are already either closing down or cutting jobs," said Hariyadi Sukamdani, head of the Indonesian Employers Association.

"And this could get worse if the annual wage increase is too high," he said, adding that firms in the association had cut 50,000 jobs since January.

ADVERTISEMENT

Thousands of workers marched in several cities on Tuesday to protest layoffs and call for higher wages as they contend with rising food prices that made Indonesia's annual inflation stay above 7 percent in August, the highest in the region.

Union leaders have called for at least a 22 percent rise in minimum wage in the capital Jakarta, which is seen as a bellwether for the rest of the country. Jakarta last year saw a rise of 11 percent in its minimum wage to 2.7 million rupiah ($191.56) a month.

Annual negotiations are getting underway between workers, employers, and local administrations to determine minimum wages later this year.

Unemployment in Southeast Asia's largest economy stood at 5.81 percent in February, according to official statistics, but analysts say that doesn't cover the informal sector and the real figure could be much higher.

"We realize economic conditions in Indonesia are not very good at the moment, but the government needs to realize it's the workers and poor people who get hit the hardest," said Bambang, a Jakarta factory worker who had participated in the rallies.

ADVERTISEMENT

"We are the ones who need to be protected." ($1 = 14,095.0000 rupiah)

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Court discharges ex-AGF Adoke, 6 others in Malabu oil scam case

Nigerians are expected to pay for TV licences — here’s what the law says

Nigerians are expected to pay for TV licences — here’s what the law says

BEDC management denies rumours of dissolution, increases revenue

BEDC management denies rumours of dissolution, increases revenue

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

Federal Govt set to sue Binance ltd, officials for tax evasion on April 4

What Nigerian law says about treatment of people with disabilities

What Nigerian law says about treatment of people with disabilities

Gambling investment is evil, will take away everything - Cleric warns youths

Gambling investment is evil, will take away everything - Cleric warns youths

All teachers need to learn digital skills to earn their students’ respect

All teachers need to learn digital skills to earn their students’ respect

Lagos lawmaker begins road construction in Yaba to ease residents' plights

Lagos lawmaker begins road construction in Yaba to ease residents' plights

Over 100 inmates in Kano seek mercy, review of death sentences

Over 100 inmates in Kano seek mercy, review of death sentences

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT