Impacts and Benefits of Omnibus Law, Labor VS Government
LiputanIslam.com— The House of Representatives (DPR) has ratified Omnibus Law Bill on Job Creation into law on Monday (5/10) at the 7th Plenary Session on the first trial period 2020-2021. This ratification caused controversy and received a rejection from various circles of society including workers.
In general, the Job Creation Bill which has now been ratified as the Job Creation Law has 11 discussion clusters, namely simplification of land permits, investment requirements, employment, convenience and protection of UMKM, and ease of doing business.
Next is research and innovation support, government administration, the imposition of sanctions, land control, ease of government projects, and special economic zones (KEK).
The government which is represented by the Coordinating Minister for Economic Affairs Airlangga Hartarto claimed that the Job Creation Law provided various benefits for society and workers.
First, the Job Creation Law protects workers who get layoffs, which are included in the Job Loss Guarantee Program (JKP). In this program, victims of layoffs are given cash incentives and job training.
“This is a job loss guarantee program that provides cash benefits, and training for upgrading or reskilling. As well as access to labor market information,” he conveyed on Monday (5/10).
Second, the right to be on leave due to menstruation and pregnancy is not abolished. Airlangga said these two rights have been regulated in the labor law.
“This law does not eliminate the right to have menstrual leave, maternity leave that has been regulated in the labor law,” he said.
Third, free halal certification for UMKM entrepreneurs. He said the cost of obtaining halal certification would be handled by the government.
“Regarding halal certification, the government bears the cost of halal certification for medium and small enterprises,” he said.
Fourth, ease of licensing on fishing boats. The Job Creation Law simplifies the ship licensing process through one door, namely the Ministry of Marine Affairs and Fisheries (KKP).
“For fishermen who previously had the fish boat licensing process through several agencies, with this law, it was sufficient to process them at the Ministry of Marine Affairs and Fisheries,” he said.
Fifth, accelerating the construction of low-income community housing (MBR). The government will establish the Agency for the Acceleration of Housing Management to speed up the provision of housing for the community.
Sixth, the provision of land through a land bank. With this law, the government will establish a land bank whose task is to distribute land for community needs.
Meanwhile, the Confederation of Indonesian Workers Unions (KSPI) assessed that the provisions contained in the Job Creation Law undermined labor rights. President of KSPI Said Iqbal said that the Job Creation Law is detrimental to the rights of workers and has an impact on job security, income security, and social security.
KSP rejected several points. First, a reduction in the value of severance pay from 32 months of wages to 25 months of wages in which 19 months are paid by employers and 6 months are paid by the Workers Social Security Agency (BPJS Ketenagakerjaan).
“The provisions regarding BPJS Ketenagakerjaan, who will pay severance pay for 6 months of wages, do not make sense. Where is the source? ” Iqbal said on Wednesday (7/10).
Second, unilateral termination of employment. In the Omnibus Law, layoffs can occur for reasons of efficiency and absent labor. Meanwhile, the definition of absent labor is not given a clear explanation. Previously, in the Constitutional Court decision, layoffs for efficiency reasons could only be done when the company was permanently closed.
Third, labor wages are calculated per hour. Iqbal explained that the amendment to Article 88B of Law 13 of 2003 allows payment of wages to be made on an hourly basis. This can make the wages of workers in a month below the minimum wage value.
“If this is implemented, employers can unilaterally determine the number of workers’ working hours. The role of the state to protect the little people who only rely on the minimum wage to fulfill their basic needs has been lost, ” he remarked.
Fourth, contract employees and lifetime outsourcing. One of the provisions in the Omnibus Law removes restrictions on outsourcing. If this is implemented, workers will not get job security.
“When outsourcing is released, it means there is no job security or job certainty for Indonesian workers,” he said.
Fifth, there is no limit to contract workers. Amendment to article 59 of Law 13 of 2003, the time limit for the contract is no longer regulated, allowing for a life-long contract.
Sixth, the conditional UMK and Sectoral Minimum Wage (UMSK) are removed. According to Iqbal, the elimination of UMSK was unfair because it would equalize all industrial sectors. In fact, the minimum wage varies in value according to the added value contribution of each industry to the country’s GDP. (sh/kompas/tempo/pikiran-rakyat/tribunnews)