Critical Analysis of the Minimum Wages in Order to Achieve Substantive Justice

Abstract

Everyone needs income to meet their needs. Determination of minimum wage for workers always rises social conflict. There is a sharp conflict of interests between employers and workers in determining the minimum wage. Workers demands high wages, but employers tend to keep the wages low. At the beginning of 2012, the Bandung State Administrative Court verdict that defeat Apindo’s claim on the revision of Minimum Wages caused a labour strike and this action was followed by the enclosing of highway. The purpose of this study was to analyze whether the law on the minimum wage has reflected the substantive justice? The research method used was sociolegal. This study discusses whether the law on minimum wage can be a legal problem solving for workers to achieve welfare. Has the law on minimum wage been in line with ILO Convention No.131? Have the court's decisions on the minimum wage shown substantive justice? The results of discussion show that the law on minimum wage has not served as legal problem solving yet. Its substances, decent living components as the objects on minimum wage, have not been in accordance with the ILO Convention No. 131.The authority of the Wage Councils (tripartite: workers, employers, government) has not been maximal for only giving recommendation. Procedure on the formulation of minimum wage has not applied the principle of transparency yet. The impact of unfavorable wage system was the action chosen by the labor to strike and shut down the highway as a form of shopping forum. There are two recommendations; the first is by revising the substance of decent living components in the minimum wage. The second is by revising the procedure in determining the minimum wage based on the principle of transparency. Keywords: minimum wage, decent living components, principles of transparency, substantive justice.