ID :
33641
Tue, 12/02/2008 - 22:58
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http://m.oananews.org//node/33641
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VP: GOVT DOESN`T WANT WORKERS` WAGES TO DROP
Batam, Indonesia, Dec 2 (ANTARA) - Vice President Yusuf Kalla said the government had changed the basis for setting workers' minimum wages in the joint decree of four ministers (SKB) from "growth rate" to "inflation rate" to prevent a decrease in workers' incomes.
"We certainly do not want the workers' minimum wages to drop and therefore we have changed the parameter used in the joint ministerial decree from growth rate to inflation rate," Kalla said during a dialogue with Riau Islands businessmen in Batam on Tuesday.
Earlier, the joint ministerial decree had drawn strong reactions from workers in many parts of the country as it was regarded as prejudicing their interests while favoring businessmen.
In the joint decree signed by the ministers of trade, industry, manpower and home affairs, the parameter used to set workers' minimum wages was the growth rate of the companies they were working for.
Kalla said when the minimum wages were calculated on the basis of the growth rate, workers' incomes were bound to drop as in reality the national economic growth rate now stood at six percent while the inflation rate was 11 percent.
"If the growth rate is used as the basis, workers' incomes will automatically decline by five percent (growth 6 percent and inflation 11 percent). So, workers' incomes which are already low by any standards, will thereby decline even further," Kalla said.
Therefore, he said, the government had changed the previous parameter to inflation rate. "The government does not want workers to experience a cut in their present wages," he said.
"Workers' wages should not be seen only from the aspect of income, but also from aspect of the workers' purchasing power. Workers must also be enabled to buy the things they need to live," the vice president said.
He said the global crisis happening now was also related to the low "purchasing power" of the world community. Therefore, the solution was providing money to the community to improve their purchasing power.
"The crisis is in essence due to the world's low purchasing power and the solution is by providing money to the peoples to enable them to buy things. We in the government will provide many infrastructure projects for the people to revive their purchasing power," Kalla said.
"Therefore, the government will in the future initiate more projects in the public sector. By doing so, the community will get more income," he said.
"We certainly do not want the workers' minimum wages to drop and therefore we have changed the parameter used in the joint ministerial decree from growth rate to inflation rate," Kalla said during a dialogue with Riau Islands businessmen in Batam on Tuesday.
Earlier, the joint ministerial decree had drawn strong reactions from workers in many parts of the country as it was regarded as prejudicing their interests while favoring businessmen.
In the joint decree signed by the ministers of trade, industry, manpower and home affairs, the parameter used to set workers' minimum wages was the growth rate of the companies they were working for.
Kalla said when the minimum wages were calculated on the basis of the growth rate, workers' incomes were bound to drop as in reality the national economic growth rate now stood at six percent while the inflation rate was 11 percent.
"If the growth rate is used as the basis, workers' incomes will automatically decline by five percent (growth 6 percent and inflation 11 percent). So, workers' incomes which are already low by any standards, will thereby decline even further," Kalla said.
Therefore, he said, the government had changed the previous parameter to inflation rate. "The government does not want workers to experience a cut in their present wages," he said.
"Workers' wages should not be seen only from the aspect of income, but also from aspect of the workers' purchasing power. Workers must also be enabled to buy the things they need to live," the vice president said.
He said the global crisis happening now was also related to the low "purchasing power" of the world community. Therefore, the solution was providing money to the community to improve their purchasing power.
"The crisis is in essence due to the world's low purchasing power and the solution is by providing money to the peoples to enable them to buy things. We in the government will provide many infrastructure projects for the people to revive their purchasing power," Kalla said.
"Therefore, the government will in the future initiate more projects in the public sector. By doing so, the community will get more income," he said.
