Page 9 - e-KLIPING KETENAGAKERJAAN 5 NOVEMBER 2020

Judul Workers, companies and govt, all stand to lose from labor unrest
Nama Media Jakarta Post
Newstrend Omnibus Law
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Tanggal 2020-11-05 05:28:00
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The continuing wave of labor unrest and demonstrations opposing the 2020 Job Creation Law,
along with the government’s decision to freeze the current minimum wage for 2021, could cause
more layoffs at a time when the unemployment rate has risen steeply to more than 10 percent
in the economic fallout from the pandemic.

Labor leaders should think out of the box and not lose sight of the big picture: the vital need to
stimulate private investment and businesses, because it is the private sector that generates jobs,
not the government.

WORKERS, COMPANIES AND GOVT, ALL STAND TO LOSE FROM LABOR UNREST

The continuing wave of labor unrest and demonstrations opposing the 2020 Job Creation Law,
along with the government’s decision to freeze the current minimum wage for 2021, could cause
more layoffs at a time when the unemployment rate has risen steeply to more than 10 percent
in the economic fallout from the pandemic.

Labor leaders should think out of the box and not lose sight of the big picture: the vital need to
stimulate private investment and businesses, because it is the private sector that generates jobs,
not the government.
Jobs provide wages, which in turn generates consumer buying power. This is the process chain
that propels the wheels of the economy.

Trade unions should instead take their fight to the Constitutional Court by filing a judicial review
request if they still cannot accept the law’s provisions on worker rights and protection, despite
the fact that most analysts have agreed that the new labor provisions are fair compared to other
labor rules in ASEAN states.

It is true that stoking greater demand for labor through growing jobs, the main objective of the
law, is as important as establishing the rules on worker protection and welfare. But overly
protective regulations could choke growth in the formal sector, which is badly needed to absorb
the huge number of job seekers.

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