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Stake Holder : Textile Industry Needs Fundamental Changes

Employers and workers are currently arguing over the provisions for calculating labor wages for 2023. Currently, the determination of wages refers to the derivative of the Job Creation Law (UU) No 11/2020, namely Government Regulation (PP) No 36/2021. Employers insist that the determination of wages must refer to the applicable law, namely PP No 36/2021. And demanded the government be consistent with the policies that have been set. On the other hand, the Confederation of Indonesian Trade Unions (KSPI) and the Labor Party asked the government not to use PP No. 36/2021 as the basis for the formulation of the provincial minimum wage (UMP) and city/district (UMK) 2023.

The reason is, according to KSPI and the Labor Party, the Job Creation Law has been declared conditionally unconstitutional by the Constitutional Court.

"Therefore, PP No 36/2021 is not used as a legal basis, so there are two bases that can be used," said the President of KSPI and the Labor Party Said Iqbal quoted Friday (18/11/2022).

Determination of wages, he continued, must use a formulation that refers to PP No. 78/2015 concerning Wages. It stipulates that the increase in the minimum wage is calculated from the value of inflation plus economic growth.

"PP No 36/2021 cannot be used as a result of an increase in fuel prices and wages which have not increased for 3 consecutive years. This has caused workers' purchasing power to decrease by 30%," said Iqbal.

"Therefore, the declining purchasing power of workers must be increased by calculating inflation and economic growth," he added.

Accuse Entrepreneurs of Deliberate Layoffs

On the other hand, Iqbal actually accused employers of laying off workers to avoid an increase in the UMP.

Suddenly, the accusation made the businessman angry.

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja said that the actual conditions on the ground were not good.

"Orders from the United States and Europe have decreased, domestic market demand has also experienced a decline, resulting in competition in the textile business between TPT (textile and textile product) exporting countries," said Jemmy.

"Indeed, employee housing has taken place. The layoffs are not because we are making this up not to increase wages, but the condition is that textile orders are falling," said Jemmy.