A Ministry of Manpower and Transmigration fact-finding team on Tuesday said the firm at the center of a labor riot in Batam last week was riddled with problems.
The team has rushed out a report with eight recommendations for PT Drydocks World Graha and the ministry’s local office.
Haiyani Rumondang, the ministry’s director of industrial relations and dispute resolution, criticized the company structure with 172 foreign workers, 7,880 outsourced workers and 2,080 staff.
“Problematic foreign workers should be sent home and be replaced by other foreign workers,” Haiyani said without elaborating. Many of the Indians employed by the company are reported not to have proper papers and permits.
The team said the Dubai-owned company should gradually replace outsourced workers with permanent employees and use local labor where it could.
“We want more Indonesians to be employed, as they are able to do the work the foreigners do,” Haiyani said. Pay should be monthly, as the law requires, not hourly, she said. Workers sometimes were not paid or were shortchanged.
Timbul Siregar, chairman of the Indonesian Workers Association (OPSI), said the Batam case was not isolated. “It happens everywhere in the country and it endangers laborers’ lives, as they are marginalized by businessmen. Batam is the tip of the iceberg.”
Outsourcing keeps the labor force poor, he warned. “Labor inspectors close their eyes, as they want investors to keep coming.”
Djimanto, deputy chairman of the Indonesian Employers Association (Apindo), said the huge ratio of outsourced workers to staff was a problem and many should be made full employees.
He added that it was “weird” for a company operating in a trade zone like Batam to have so many underlying problems and called for an inspection of firms there.
“It shows that the labor inspectors from the manpower office are not working to the rules, as such things cannot happen in a trade zone. I sense [officials] have been bribed by businessmen.”
Two of Drydocks World’s three shipyards reopened for business on Monday. Denis Welch, chief executive of its parent company, insisted last week’s trouble was an isolated incident concerning outsourced laborers. “We will not allow it to be repeated,” he added.
The team has rushed out a report with eight recommendations for PT Drydocks World Graha and the ministry’s local office.
Haiyani Rumondang, the ministry’s director of industrial relations and dispute resolution, criticized the company structure with 172 foreign workers, 7,880 outsourced workers and 2,080 staff.
“Problematic foreign workers should be sent home and be replaced by other foreign workers,” Haiyani said without elaborating. Many of the Indians employed by the company are reported not to have proper papers and permits.
The team said the Dubai-owned company should gradually replace outsourced workers with permanent employees and use local labor where it could.
“We want more Indonesians to be employed, as they are able to do the work the foreigners do,” Haiyani said. Pay should be monthly, as the law requires, not hourly, she said. Workers sometimes were not paid or were shortchanged.
Timbul Siregar, chairman of the Indonesian Workers Association (OPSI), said the Batam case was not isolated. “It happens everywhere in the country and it endangers laborers’ lives, as they are marginalized by businessmen. Batam is the tip of the iceberg.”
Outsourcing keeps the labor force poor, he warned. “Labor inspectors close their eyes, as they want investors to keep coming.”
Djimanto, deputy chairman of the Indonesian Employers Association (Apindo), said the huge ratio of outsourced workers to staff was a problem and many should be made full employees.
He added that it was “weird” for a company operating in a trade zone like Batam to have so many underlying problems and called for an inspection of firms there.
“It shows that the labor inspectors from the manpower office are not working to the rules, as such things cannot happen in a trade zone. I sense [officials] have been bribed by businessmen.”
Two of Drydocks World’s three shipyards reopened for business on Monday. Denis Welch, chief executive of its parent company, insisted last week’s trouble was an isolated incident concerning outsourced laborers. “We will not allow it to be repeated,” he added.
