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Companies failing to address basic employee welfare issues

Jakarta Globe - May 2, 2010

Ulma Haryanto – As workers around the world marked May Day, they once again drew public attention to the shoddy way in which many companies treat their staff.

"I lost my baby during my pregnancy, but I didn't know at the time," said Pipit, 30, a garment factory worker whose first child was stillborn. She told the Jakarta Globe she could only afford to go to a midwife to monitor her pregnancy every two months.

She makes the minimum monthly wage of Rp 1.1 million ($122), but takes home only Rp 850,000 to Rp 900,000. "I took a loan from a co-op for my wedding, which they cut from my pay each month," she said.

She also used to put aside Rp 250,000 a month to cover the costs of giving birth because her company did not cover her medical expenses.

"One of my colleagues fell ill once and couldn't come in, but instead of paying for his treatment, they cut his salary," she said. "That's how it works if you're out more than two days."

Workers like her, she said, had to pay their own medical bills. "I'm recovering, but I hope to go back to work soon," she said.

Pipit's company gave her two weeks' unpaid maternity leave. "If my baby had lived, I wouldn't mind unpaid leave," she said. "But I lost her and also part of my salary, and it's sad."

Pipit's plight epitomizes the disenfranchised working class still struggling for basic social security.

Hermawanto, of the Indonesian Workers Union Association (Aspek), said that although companies were paying more heed to improving their workers' welfare compared to previous years, there was still a long way to go.

"When we talk about minimum wage and health care, more companies are including these things in their employment policy," he said.

He said this was part of their compliance with the 2004 National Social Security Law. "But, of course, it's not enough, because the workers also need pension funds, social security, health coverage and unemployment benefits," he said.

The social security law is meant to overhaul existing social protection programs and usher in universal coverage to protect workers against risks associated with old age, illness, work-related injuries and death. Since its passage in 2004, the law has not been enforced.

"A lot of informal workers could lose their jobs at any moment, and if they do, they won't have any social security net," Hermawanto said. "Companies often cling to the old view that social security is a burden. They refuse to believe modern management theory that happy employees contribute more to the company's productivity and profitability."

Disenfranchised workers have for the most part taken their cases to pro bono institutes like the Jakarta Legal Aid Foundation. In 2009, a record 163,165 workers filed complaints with the foundation, saying their rights had been breached.

The reported violations included employers failing to pay the minimum wage, breach of contract and denial of workers' rights to receive allowance.

Litigation on this front, however, often backfires on the workers. "Union heads or activists usually end up being fired or even sued for libel by the companies," Hermawanto said.

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