Minimum Wage and Decentralization

In a recent post, I wondered aloud about the effect of decentralization on labor’s ability to push for increases in the minimum wages, which are set by tripartitie bodies at the provincial and district levels.  This exact issues was mentioned  by the head of Kongres Serikat Pekerja Indonesia (KSPI) in this Jakarta Post article:

Chairman of the Confederation of Indonesian Workers Union (KSPI) Thamrin Mossie said the decentratilization program under the guise of regional autonomy has cut the links between labor unions and workers.  “After losing their close link to laborers in the field, most unionists apponited in regional councils fixing the regional minimum wages are representing company-level trade unions, instead of national labor unions,” he said.

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