Minister Of Manpower Ida Fauziyah Messages Companies, Cannot Adjust Wages Unilaterally

Screenshot of the Minister of Manpower Ida Fauziyah in a working meeting with Commission IX DPRI (ANTARA)

JAKARTA - The Minister of Manpower (Menaker) Ida Fauziyah reminded companies not to make wage adjustments unilaterally. Employers and workers must sit together in bipartite negotiations to reach consensus.

"There cannot be any unilateral wage adjustments. Everything must be discussed in a bipartite manner," he said during a working meeting with Commission IX of the DPR, Jakarta, Antara, Tuesday, August 24.

Companies, he said, need to be open in conveying financial conditions to their workers in the bipartite dialogue. With a cool head, it is hoped that the dialogue can reach a common ground from the side of the company and workers.

According to the Minister of Manpower, this is important because there are still companies that still make unilateral decisions and do not engage in dialogue with their workers.

"But we continue in various forums to convey that social dialogue should be prioritized," he added.

The Ministry of Manpower has several strategic policies related to the implementation of employment relationships and prevention of termination of employment (PHK), namely providing guidelines for adjusting the work system, minimizing the risk of COVID-19 infection, providing a mix of wages for companies experiencing the impact of the pandemic and implementing Salary Subsidy Assistance and facilitating vaccinations.

For companies experiencing the impact of the pandemic, which affects business continuity, he said several alternative steps could be taken, such as production cost efficiency, adjusting work places and working hours, gradually reducing worker facilities and benefits starting from the managerial level.

In addition, adjustments can be made to the amount and method of payment of wages based on the agreement, reorganizing the priority of using workers with a Specific Time Work Agreement (PKWT) and opening up opportunities for workers to retire early.

"All of that must be discussed, it can't be done unilaterally by the company," said Ida Fauzyah.