•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

Worker strikes never benefit any party — either the workers or the management. It is therefore heartening that a week-long strike across the capital was averted after the Jakarta wage council approved a higher minimum wage level.

That workers had threatened to strike in the first place is worrying. Workers should not be denied a fair wage for their labor, as they, too, have families to feed and children to school. The central issue is how minimum wage levels are decided.

Mas Muanan, a member of the council, conceded that after the last-minute negotiations with workers’ unions on Sunday night, the wage had been raised from the proposed Rp 1.497 million to Rp 1.529 million ($166 to $170) per month. He disclosed that the council had agreed to the wage demands after workers threatened to carry out a massive strike.

Such threats can be self-defeating as employers, too, must balance costs with earnings. Unsustainable wage increases will put pressure on companies’ ability to grow and prosper. If a company goes under due to high costs, workers suffer as they lose their jobs and their livelihoods.

It is thus far better to arrive at mutually agreed-upon wage levels that allow workers to improve their financial well-being without impacting the ability of companies to grow and earn a profit. Employers must not be held hostage by strike threats while workers should not be denied a fair wage.

It is not always possible to arrive at the perfect solution and each side must compromise where necessary. Industrial relations are critical for any country as a constructive working relationship between workers and employers is the basis for continued economic growth.

Indonesia has been fortunate to have enjoyed strong economic growth these past few years. The absence of strikes and other industrial action by unions should not be underestimated as a major contributor to this growth. Workers have earned their dues, but we must be careful not to rock the boat that has delivered the robust growth.

They must resist the temptation to strike over such matters if the country is to maintain its positive image internationally and domestically. The country and the workers themselves have much to lose from such action.