Wages Councils Research Articles

Kedudukan dan Fungsi Dewan Pengupahan dalam Rangka Penetapan Upah Minimum Tenaga Kerja di Provinsi Nusa Tenggara Timur

The Wage Council of East Nusa Tenggara Province is a Non-Governmental Institution that is Independent, Self-Reliant, and Tripartite, tasked with recommending the Minimum Wage for Laborers to the Governor of East Nusa Tenggara Province for determination. The determination of the Minimum Wage for laborers in East Nusa Tenggara Province is established based on the Governor's Decree to be implemented by Companies in providing wages for laborers, especially in the Districts/Cities throughout East Nusa Tenggara Province where the Wage Council has not been formed. The Wage Council of East Nusa Tenggara Province as a Non-Structural Institution that is independent and self-reliant, in carrying out its duties and responsibilities, has not been effective when the survey for decent living needs is omitted as regulated in Law Number 13 of 2003 concerning Manpower in conjunction with Government Regulation Number 78 of 2015 concerning Wages. The tasks and responsibilities of the Provincial Wage Council in determining the minimum wage of laborers in East Nusa Tenggara Province are stipulated in Law Number 11 of 2020 concerning Job Creation as a Replacement for Law Number 13 of 2003 which technically eliminates the Decent Living Needs Survey for one (1) person as a benchmark in recommending Minimum Wage Determination to the Governor. The formulation of the problem in this research is: (1) What is the Position and Function of the Wage Council in Determining the Minimum Wage of Laborers in East Nusa Tenggara Province? (2) What are the Prospects of the Wage Council of East Nusa Tenggara Province in the Future? The author conducted normative research supported by empirical research as complementary data. The focus of the research is the Wage Council as a non-governmental, independent, and self-reliant institution that has a position and function in determining the minimum wage since the Decent Living Needs Survey was eliminated and the Prospects of the Provincial Wage Council in the Future. The results of this research indicate that: (1) The Position and Function of the Wage Council as an independent/self-reliant institution in reality are not independent/self-reliant due to the involvement of third parties, namely the Central Bureau of Statistics. (2) The Prospects of the Wage Council in the Future after the Decent Living Needs Survey is abolished.

Pertimbangan Besaran Upah Minimum Kabupaten Banyumas OlehDewan Pengupahan Kabupaten Banyumas

This paper is entitled Considerations of the Banyumas Regency Minimum Wage Amount by the Banyumas RegencyWage Council. This study aims to determine the process of implementing the Banyumas Regency minimum wage in2023. This research is a sociological juridical research with the subject of study by the Banyumas RegencyManpower, Cooperatives and SMEs Service. The aim of this research is to build synergy between the BanyumasRegency Wage Council and the obstacles in determining the minimum wage in Banyumas Regency. Wages areincome received by workers in the form of money, which includes not only wages/salaries, but also overtime andallowances received on a regular basis, excluding holiday allowances which are annual, quarterly, and otherallowances which are not routine. Wages are all kinds of payments arising from work contracts, regardless of thetype of work, which are a form of income received by workers as compensation for the work they do. To determinethe district minimum wage in accordance with community standards, the district minimum wage is determined bythe government, namely the district Department of Manpower, Cooperatives and Small and Medium Enterprises.Keywords: Wages, Wage Council, Banyumas Regency

Effective Facilitation and Major Improvements through Revamping Wage Regulations in Indonesia

This study examines the role of the Sidoarjo Regency Manpower Office in determining the Regency/City Minimum Wage (UMK). Using a qualitative approach, data were collected through interviews, observations, and documentation with key informants such as workers' unions, employers, and government officials. The findings reveal that the Manpower Office effectively facilitates wage determination by providing necessary infrastructure, forming wage councils, and aligning with central government regulations. However, improvements in infrastructure efficiency and the development of clearer, faster regulatory methods are needed. This research highlights the office's strengths and areas for enhancement in setting fair minimum wages. Highlights: Effective Facilitation: Provides infrastructure and forms wage councils for UMK determination. Regulatory Alignment: Complies with central government policies and living needs. Infrastructure Improvement: Enhances efficiency and develops faster, clearer regulations. Keywords: Sidoarjo Regency, Manpower Office, Minimum Wage, Labor Regulation, Qualitative Research

The Role of Labor Unions in Determining Minimum Wage in Indonesia

Purpose: This research aims to analyze the importance of labor unions in decent living standards to improve labor welfare to increase labor’s minimum wage and respond to the implementation of Government Regulation No. 78 of 2015 about wages. Theoretical framework: The labor union is the labor representative that has an essential role in determining minimum wage in the regency because the labor union is a member of the Wage Council. Implementing Government Regulation No. 78 of 2015 concerning wages leads to wage disparities, especially in East Java province. The determination of minimum wage has become a crucial and complex problem as it involves the interests of labor, companies, and government. Every of the wage disparities increases that influenced labor conditions became less conducive, and companies relocated their businesses. Labor unions’ important role is to fight to improve labor’s welfare. Design/Methodology/Approach: This research used a qualitative approach. The research location is in East Java, with informants who are labor union in East Java, East Java Indonesian Business Association, East Java Province Wage Council, East Java Labor and Transmigration Office, and Regency Labor Office. The data was collected through interviews. Findings: This research’s results find that Labor Union’s important role influenced wage discretion implemented by the East Java governor, and Labor Union’s important role successfully decreased wage disparity. Research, Practical & Social implications: This research is still limited to important role of Labor Union in minimum wages. Future research can examine other roles of Labor Union in helping improve workers' welfare, for example contributing to improving labor regulations. Originality/Value: The study explore important role of labor union from various points of view, namely from East Java Indonesian Business Association, East Java Province Wage Council, East Java Labor and Transmigration Office, and Regency Labor Office.

The Role of Interest Groups in Improving the Quality of Public Policy (Case Study of Minimum Wage Policy in South Sulawesi Province)

The issue of the provincial minimum wage has always been confronted with the interests of who is excluded from a number of directly related interest groups. Trade union groups highlighted issues related to the minimum wage, namely around the issue of increasing nominal wages in relation to decent living conditions every year experiencing an increase in the inflation index. On the other hand, employer groups encourage the creation of business sustainability with minimal labor salary costs. These two issues always have conflicts in the process of determining the minimum wage policy of South Sulawesi Province regarding how interest groups contribute to the minimum wage policy. To answer these problems, argumentative qualitative research methods are used, focusing on the role of interest groups (Trade Union Groups and Employer Groups) in encouraging the formation of quality minimum wage policies, acceptable to all parties. The case of the process of determining the minimum wage policy for South Sulawesi Province in 2022 carried out in the Wage Council forum is the focus and locus of this research. The interactive single case analysis method was used to analyze the data of interest group debates in the Wage Board forum. The results showed that the ability between interest groups in the process of formulating provincial minimum wage policies, tends to differ in exerting pressure and influence on the minimum wage policy posture. Employers tend to use the power of lobbying and negotiation processes in wage board forums, while union groups tend to use the media of demonstrations and intimidation of worker group members. The ability to negotiate in the Wage Council forum has a real impact on the acceptance of policy proposals by the South Sulawesi provincial government authorities. The cohesiveness of interest groups is observed to have a positive effect on the sustainability of the struggle for policy ideas in policy forums, where trade union groups are still fragmented compared to employer groups. In the end, the decision on the provincial minimum wage policy was decided by considering the majority of views of the employer group with an increase of about 6.9% from the previous year's minimum wage.

Wage councils, product markups and wage markdowns: Evidence from Uruguay

In 2005, after a leftist coalition won the national election for the first time, Uruguay returned to sector-level wage bargaining councils with active government participation. We estimate product markups and wage markdowns using firm-level data for the period 2002–2016, and report decreasing wage markdowns and increasing -to a lesser extent- firm-level product markups. We find statistically significant impacts of minimum mandated wages on product markups and wage markdowns, and additional effects of unions on wage markdowns. The evidence suggests that firms operate in monopsonistic labor markets. Though their bargaining power in the labor market was reduced over time as a result of wage councils, firms were able to pass a sizable part of the increases in labor costs to consumers.

IMPLEMENTASI MAQASHID AL-SYARIAH DALAM PENETAPAN UPAH MINIMUM PEKERJA BERBASIS KEADILAN

This research is intended to provide a solution in determining the minimum wage for workers that realizes a sense of justice based on values derived from Islamic sharia, so this research is focused on discussing how maqashid al-syariah is used as the basis for determining the minimum wage for workers in order to achieve a sense of justice for both workers and for employers. This research is limited to the following problem formulations: (1) How is the determination of the minimum wage for workers according to positive law; (2) How is the minimum wage for workers determined according to Islamic law; d (3) How is the implementation of maqashid al-syariah regarding the determination of the minimum wage for workers based on justice. This research is normative legal research or library research. The approach used is the statutory approach (that is, an approach in research that uses the law as the basis for its analysis) and the conceptual approach (this approach is used to build a concept where not or have not found clear legal rules regarding the problem under study). The results of this study are: (1) Determination of the minimum wage for workers by the Governor is based on a proposal from the Wage Council. The amount of wages that is considered for its determination is based on the results of a survey conducted by the Wage Council. (2) In Islamic law, the minimum wage is not determined with certainty either by the arguments of the Qur'an or Sunnah, but through the prevailing customs in society with the principle that the minimum wage provided by the employer must be able to meet the basic needs of the worker. and his family. (3) The implementation of maqashid al-syariah regarding the determination of the minimum wage for workers can be realized in the form of implementing sharia commands and abandoning sharia prohibitions in muamalah.Keywords: Maqashid al-Syariah, Minimum Wage, Workers, Justice.

SINGAPORE’S HIGH WAGE POLICY REVISITED

The author, now aged 90, reflects on the then highly iconoclastic National Wages Council (NWC) recommendation of a 20% yearly gross wage increase guideline for three years, 1979–1981. He emphasizes the important differences between the negotiable and the non-negotiable recommended wage increases. He also emphasizes the important difference between a pure percentage wage increase and a quantum plus percentage wage increase formula particularly in the integral economic restructuring program. The compulsory payments consisting of the important Central Provident Fund (CPF) increases and the new Restructuring Skills Development Fund (SDF) Levy. The increase in the compulsory CPF led to the formation of the Sovereign Wealth Fund — the Government Investment Corporation (GIC). The restructuring led to the creation of the SDF. The SDF was used to promote labor productivity through the then equally iconoclastic substitution of capital for labor programs. The end result of the restructuring policy was to minimize demand-pull inflationary pressures, increase the gross wages of low-wage and medium-wage workers and increase real Gross Domestic Product (GDP) growth rates, accompanied by an important fall in the Gini Coefficient of income inequality. The anti-cyclical preparedness of the high-wage economic restructuring program is also emphasized and the idea of discussing the high-wage policy in isolation is debunked.

Wage Boards And Labor Revitalization: Uruguay As An Exploratory Study

State-supported sectoral bargaining through wage boards is gaining traction among some U.S. reformers interested in revitalizing labor unions and labor law. New York has become a celebrated case, but the recent experience there left some activists disappointed. Theoretically, revitalization through wage boards is complicated. Labor law doctrine, which favors collective autonomy, might endorse state-created wage boards, but only in a qualified manner. Moreover, reformers consider union membership growth to be important for labor union revitalization. And yet, empirical studies have shown that sectoral bargaining has an indeterminate impact on union membership. Given New York’s uneven results, and theoretical qualifications and indeterminacies, this article presents Uruguay as a successful case of wage boards, from where we can draw lessons for other jurisdictions, including the United States. The article describes how Uruguay’s wage councils, convened in various periods since 1943, revitalized labor unions in the South American country, at least in some periods. Specific economic, institutional, and political conditions facilitated the success of the wage councils, pointing at the socio-historical conditions needed for successful wage board strategies. The article concludes with five hypotheses for the U.S., and three issues for further research to better understand when wage boards can best work.

Eksistensi Dewan Pengupahan Dalam Proses Penetapan UpahMinimum

An existence of Wage Council in the process of setting minimum wages is currently less than optimal. Thisresearch aimed to analyze the existence of Wage Councils in the process of setting minimum wages based on ananalysis of substance and procedures in legislation. This research was a normative juridical with statuteapproach. The results showed that the differences in the implementation of the provisions of Article 88paragraph (4) of Law 13/2003 with the implementing regulations contained in Article 43 paragraph (1) PP78/2015 jo Keppres 107/2004 jo Article 1 Permenaker 15/2018. The resulting recommendation made a revisionof the rule of law that can optimize the Wage Council's performance in the process of setting minimum wages.

Economical and Social Effects on Retirement Salaries of Participants and Beneficiaries From the Jordanian Social Security System

The study aims to identify the reality of retirement salaries for the 1,200,000 insured employees at the social security network in Jordan, out of a total workforce of about 5,926,580, which means that 20% of the total number of employees is included in the social security system. The study aimed to make a comparison between the retirement salaries level and the cost of living level of the Jordanian family, which amounted to (854) JDs per month based on the spending and wages average at the Jordanian General Statistics Department, while the retirement salaries rate paid to the retirees of government and private sectors amounted to (494) JDs per month for the public sector and also (494) JDs per month for the family of private sector.The study viewed the retirement salaries rates according to the various economical activities for the years (2015/2016) and the results showed that average retirement salaries for those eligible social security participants (493) JDs per month, while the average beneficiaries who currently receive retirements salaries is about (576) JDs per month and their number about (193,763) thousand citizens. The study was also shocking as it turns out that retirement salary for the beneficiaries who receive retirement salaries now between (178) and (576) JDs, which means that many of the low beneficiaries segments and after (20) years of continuous service their retirement salaries don't reach the government-set poverty line of (339) JDs per month, and all salaries of participants who haven't reached the retirement age and the beneficiaries, the retirement salaries of 100% of them will not reach the sufficiency line or the average cost of living for the Jordanian family of (854) JDs per month. Study recommends the establishment of a higher wage council made up of economists, jurists, financial people, and representatives from the public and private sector, and the army, military, and security institutions to establish a fair wage system.

THE ROLE OF THE CENTRAL JAVA PROVINCIAL WAGE COUNCIL IN DETERMINING REGENCY/CITY MINIMUM WAGES IN 2020

<p>The purpose of the study entitled "The Role of the Central Java Provincial Wage Council in Determining Regency/City Minimum Wages in 2020" is to determine the role of the Central Java Provincial Wage Council and the procedures for setting the minimum wage in 2020 by the Governor of Central Java Province. The research method used is normative juridical, which is an approach aimed at the study of legal issues from the aspect of applicable legal regulations, in this case in the form of the role of the Central Java Provincial Wage Council in seeking regency/city minimum wages in Central Java. Before the Central Java Provincial Wages Council was formed the name of the Central Java Provincial Research, Wages and Welfare Commission. With Presidential Decree No. 107 of 2004 concerning the Wages Board stipulated by the President of the Republic of Indonesia Megawati Sukarno Putri on 18 October 2004. In principle between the Research Commission and the Wage Council there are some differences, among others, regarding the requirements to become a member of the Research Commission and the Wage Board that the requirements to become members of research do not have to bachelor, while to become a member of the Wage Board must be a S1 as well as regarding the composition in the Research Commission the ratio between representatives of workers, government and employers is 1:1:1 and universities. While in the Wage Council the ratio of government, workers, and employers is 2: 1: 1 and universities and experts. In order to follow up on the Presidential Decree on the Wage Council, the Governor of Central Java Province issued Decree No. 560/61/2005 concerning the Establishment of the Central Java Provincial Wage Council. The Governor of Central Java Province also issued Regulation No. 31 of 2005 concerning Procedures for Proposing Members of the Central Java Province Wage Council. Governor's Decree Number 560/58 2019, concerning UMK of 35 Regencies/Cities in 2020 stipulated the highest wage in Semarang City of Rp. 2,715,000,-, while the lowest was found in the Banjarnegara district of Rp. 1,748,000. Determination of wages has been through existing mechanisms and refers to applicable laws and regulations. The minimum wage is calculated based on the formula of Article 44 paragraph (2) of Government Regulation no. 78 of 2015, in accordance with the Minister of Manpower Letter No. BM 305 Year 2019.</p>

DILEMA PENETAPAN UMK/UMSK KABUPATEN BEKASI KAJIAN TERHADAP PERATURAN PEMERINTAH RI NOMOR 78 TAHUN 2015 TENTANG PENGUPAHAN

For years, the determination of the Regency/City Minimum Wage or UMK and the Regency/City Sector Minimum Wage or UMSK has always caused tension to many parties. The difference in viewpoints between Labor Unions and employers' business associations always colored the long series of meetings at the Bekasi Regency Wage Council. Sometimes it is colored by demonstrations and debates that become the dynamics in making decisions that are very much awaited by workers and employers. The issuance of PP 78 in 2015 which determines with certainty the issue of UMSK does not necessarily solve the problem. Although the Workers/Laborers rejected this PP, all of them respected the new rules. It's not fun for all parties, but at least there is certainty about the amount of UMK every year. However, the determination of UMSK is even more confusing. The leading sector studies that form the basis of the Depekab proposal to Workers/Labor associations and Employers' associations in the sector did not satisfy all parties. Each of them tries to propose each other's studies and rejects the other's studies. The Government elements in the Depekab who are facilitators have tried to conduct studies by forming an independent team and involving Labor unions and Employers' associations, but the results have not been accepted by the two elements. This means that the completion of the UMSK determination will still face a steep road. However, Indonesian culture that always upholds deliberation and consensus is so prominent. The end of all studies is the agreement between the Labor association and the Employers' association in the sector that will be superior is the key.

Power Imbalances in Collective Decision-Making: The Study of Minimum Wage Setting Cases

This paper aimed to empirically describe the power imbalances issues in setting the minimum wage in Bandung Regency and West Bandung Regency. Formally, Regional Wage Council has been established based on equality. However, several power imbalances have occurred within it. This paper also aimed to figure out the way to balance the power in collective decision making in the case of minimum wage setting. Furthermore, the research method used in this research was based on qualitative approach. Also, informants in this research were members of Regional Wage Council, employers in the industrial sector, and trade unions/labor unions in Bandung Regency and West Bandung Regency. The results of this study showed that power imbalances empirically existed in the setting of minimum wage. These imbalances were due to the issues of representatives, the number of members, information resources, and uncertainty. Moreover, power imbalances in the setting of minimum wage have led to the government’s more dominant role. Under these conditions, the effort required to overcome the problem of imbalance is by increasing trust in the government and the commitment of each party to the rules and collective agreements.

Politicizing the Minimum Wage: Wage Councils, Worker Mobilization, and Local Elections in Indonesia

Indonesia’s weak labor movement transformed local wage councils from institutions of wage restraint into institutions that delivered generous wage increases. This article argues that the arrival of direct elections created an opportunity for unions to leverage elections to alter the balance of power on the wage councils. Activating that leverage required increased contentiousness and coordination among unions. As unions mobilized around wages, conflict with capital intensified and produced disruptive protests that led incumbents to side with workers. Unions also developed innovative tactics to sustain momentum in nonelection years. As unions turned the wage councils in their favor, employers fought back by shifting the scale of the conflict to the national level; the result was the recentralization of wage setting and more modest increases. In a global context of ever weakening organized labor, the Indonesian case shows how weak unions can gain power by mobilizing politically at the local level.

Wage Boards for the 21st Century: Revisiting Sectoral Standard-Setting Mechanisms for the Workplace

As existing labour relations and minimum standards regulatory systems have continued to struggle to ensure acceptable worker voice and workplace standards, attention has increasingly turned to whether broader-based or sectoral approaches can offer solutions. In the early 20th century, several countries established statutory systems of sector-based minimum workplace standard-setting as a response to unacceptable wages and working conditions. Key examples are the British Wages Council system, the Industrial Standards Act established in the Canadian province of Ontario, and the federal United States Fair Labor Standards Act. Although these three statutory systems arose out of broadly similar social and economic concerns, they reflect different conceptions or applications of tripartism, different perspectives on the role of voluntarism and collective representation and bargaining, and different approaches to sectoral workplace standard-setting. These systems also share important commonalities: all had roots in combatting sweated labour, characterized by fragmented and scattered workplaces and unacceptable remuneration and conditions of work, where – partly due to the characteristics of the work, workers and employers in these sectors – no voluntary collective negotiations could take root. These circumstances have clear parallels to today’s work and economy. This article examines these three systems, at the point at which each regime provided the most robust sectoral standard-setting procedure, as informative examples of a spectrum of approaches to tripartite sectoral workplace standard-setting. Out of this comparison, this article then offers some considerations for a modern approach to sectoral workplace standard-setting.

BAGAIMANAKAH PERAN SERIKAT PEKERJA DALAM PENENTUAN UPAH SETELAH BERLAKUNYA PERATURAN PEMERINTAH NO. 78 TAHUN 2015 TENTANG PENGUPAHAN

Law no. 13 of 2003 on Manpower clearly regulates the determination of district minimum wage set by the Governor by taking into account the recommendations of the Wage Council, the Wage Council conducts a market survey to establish the standard of living needs of a person. The Manpower Act states that in the process of establishing a minimum wage the need for negotiations between the wage council, trade unions and employers' organizations. While the Governor looks for the middle line to set the minimum wage. After the issuance of Government Regulation no. 78 Year 2015 on Wages, minimum wage determination is no longer through negotiation, but through minimum wage calculation formula that is with the minimum wage of the current year, inflation and gross domestic income. The author intends to find out about the role of unions after the issuance of Government Regulation no. 78 of 2015 on remuneration, and determination of minimum wage. The author examines this issue using nomative research methods supported by expert interview data. The author analyzes that after the issuance of the Government Regulation on Remuneration of unions has ceased to function in the protection of workers' welfare.

New Perspectives on Collective Labour Law: Trade Union Recognition and Collective Bargaining

Abstract Drawing on the Manifesto for Labour Law published earlier this year, we consider Kahn-Freund’s assessment of British labour law (for the first three quarters of the twentieth century) as voluntarist, abstentionist collective laissez faire as espoused by Bob Simpson. In contrast (and utilising Simpson’s tool of ‘law in context’), we point up the role of the state during this period in implementing labour law policy in support of extensive collective bargaining by the use of public law powers (in the contemporaneous sense in which such law was understood). Drawing on this legacy, we set out the measures by which collective bargaining, in particular at sectoral level, might be restored. We deal with the establishment of Sectoral Employment Commissions consisting of equal numbers of employers and union representatives (similar to the old Joint Industrial Councils). In default, tripartite bodies based on the extinct Wages Councils would be established. We propose the (re) use of ‘fair wages clauses’ (ie public procurement arrangements) to require participation in collective bargaining and the observance of collective agreements. We consider the reciprocal issues of representation at the workplace, union access thereto and reform of the recognition machinery, taking in Simpson’s analysis of the current and earlier recognition legislation.

Implementation Of The Local Minimum Wage In Malang City (A Case Study in Malang City 2014)

Wage system in a framework of how wages set and defined in order to improve the welfare of worker. The Indonesian government attempt to set a minimum wage in accordance with the eligibility standard of living. The study intend to analize the policy of Local Minimum Wage in Malang City in 2014, its implementation and constraining factors of those Local Minimum Wages. The research uses interactive model analysis as introduced by Miles and Hubermann [6] that consist of data collection, data reduction, data display, and conclusion. Constraining factors seen at the respond given by relevant actors to the policy such as employer organizations, worker unions, wage councils, and local government. Firstly, company as employer organization does not use wage scale system as suggested by the policy. Secondly, lack of communication forum between company and worker union sounds very high. Thirdly, inability of small and big companies to pay minimum standard wages. Lastly, disagreement and different opinion about wage scale applied between local wage council, employer organization and workers union that often occurs in tripartite communication forum.

Los salarios en la industria manufacturera. Uruguay, 1946-1955

In 1943 a law created the tripartite Wages Councils with the assignment of fixing minimum wages per occupation in economic activities groups. This source of information was still unexplored, and those decisions allowed designing 4 indexes of wages of urban workers and employees in the private sector. According to these, wages peaked in 1952, which was 33% above the level of 1946 when weighted by the number of employed, and 40% above when weighted by the wages. During the following years until the end of the period in 1955, the 4 indexes showed slight declines and last year ranked between 30 and 37% above the initial level. Estimated in dollars of 2011, the average minimum wage in 1955 for the unskilled workers was approximately 1,000$, and the maximum for mid-level technicians was 1,597$.