PAYROLL SYSTEM MUST BE OF MUTUAL BENEFIT

The Ministry of Manpower and Transmigration [Kemenakertrans] pled business people and workers to scheme up a payroll system which complied with the sense of Justice and beneficial to both parties. Ideally, a good payroll system must allow room for promoting workers’ welfare however still considering company’s capacity so the production process ran as normally to offer profit for business stakeholders. In this case the National Triparty Council [LKS Tripnas] could set up the best payroll system to step up competitiveness of industries in Indonesia and attract investors who would open employment opportunities to the public.

Irianto Simbolon, the Director General of Industrial Relations and Social Welfare [PHI and Jamsos] Kemnakertrans, stated on Friday [3/5] that the Government, in stipulating payroll policy should not just aim at securing good welfare for the workers and their families but also to step up company’s productivity and increase people’s purchasing power. Furthermore in promoting workers’ welfare, the Government should not just do it by setting up adequate salary level but also by improving facilities for welfare such as transportation, meal, and housing including house rental, health services etc.

Upgrading of workers’ welfare by stipulation of minimum wages was the expectation of every worker in any working relationship. However for the future the Government supported the concept of performance-based payroll system. A constructive industrial relationship might open employment opportunities, minimize unemployment and poverty an open business expansion for the industry. To open employment opportunity means to build a favorable, healthy, productive and competitive industrial relationship in every company. “Such is the importance of a fair payroll system, so workers could work in peace” Irianto said.

The Ministry encouraged LKS Tripnas to discuss national payroll system, including the management of minimum wages and assessment of components of decent living. According to Irianto, the components of LKS Tripnas were the Government, labor union and businesspeople, they should work hard to scheme up a salary system which was fair to workers and employers. The industry must strive to set up a payroll system which was based on justice; and welfare oriented, in line with Indonesia’s economic development. A salary system which was beneficial to workers and employers.  

Irianto expected that the stipulation of minimum wages was not only based on the value of Decent Living [KHL] but also on other variables as base, i.e. macro productivity, economic growth, the condition of labor market, and marginal companies. Other considerations were promotion of workers’ welfare, as well as regional and national growth.

Workers were more than just production factor. The era of cheap labor was over. For that matter, the company’s management must think about workers’ who were productive. He demanded all to have the commitment that with company’s growth, all parties would feel the sound benefit. Irianto stressed that if employees were productive, it was the obligation of the Management to care about their welfare.

Within a broader context, if productivity increased, the state’s income increased accordingly. Irianto reminded again the importance of a harmonious industrial relationship between companies and workers to ensure sustainable business growth. “A harmonious relationship was most important and could only be attained if employers and employees sit together and try to understand each other’s rights and responsibilities” Irianto concluded. (SS)

 Business News - May 8, 2013