ITGLWF intervenes in Indonesian pay dispute
The Brussels-based International Textile, Garment and Leather Workers’ Federation (ITGLWF) has become embroiled in a row taking place in Indonesia over an increase in the country’s minimum wage. Employers in the country are fighting the increase proposed by the government, claiming that it will make them uncompetitive.
An increase in the minimum wage took place on January 1 2002, but employers managed to temporarily delay its application by taking the government to court in Jakarta. Through the Indonesian Employers Association (APINDO), employers are arguing that the increase, which brings the monthly wage to about $60, would be too heavy a burden for many companies.
In a letter to APINDO, general secretary of the ITGLWF Neil Kearney warned that challenging the increase in the minimum wage could damage the credibility of manufacturers in Indonesia, saying it might drive away merchandisers and retailers. Instead of driving down wages to improve profits, he argued: "firms should begin paying a living wage, introduce working conditions that respect international labour standards and improve the quality of products and management".
