FSPM Bali Encourages Companies to Comply with UMP

DENPASAR, BALIPOST.com – Following the stipulation of the 2024 Bali Provincial Minimum Wage (UMP), the nominal value of which does not meet the expectations of the trade unions, the Bali Federation of Independent Workers Unions (FSPM) is currently focused on pushing for the obligations of companies to regulate wage scales in accordance with government regulations.

“The government has actually required each company to implement a wage structure and scale, which is where workers have room to negotiate with the company, so that wages are not just the UMP, but according to conditions,” said Bali Regional FSPM Secretary Ida I Dewa Made Raibudi Darsana in Denpasar, quoted from Antara news agency, Tuesday (21/11).

This labor union urges companies to formulate wage scales based on considering how many dependents the employee has, work period allowances, position allowances and religious allowances, bearing in mind that the UMP should only apply to the first year of employment.

“The most important thing is that there are workers who have years of service, there are those who have worked for 10-20 years. Second, the worker has family responsibilities, and the Balinese people must also pay attention to the customary and cultural practices, at least there is a religious allowance. “These are the components that must be negotiated, don’t let the structure and scale of wages increase by only Rp. 10,000,” said Rai.

Their efforts are to establish intense communication with the Bali Employment Service, because they are obliged to ensure that all companies follow the directions contained in PP Number 51 of 2023.

The Secretary of FSPM Bali is aware that this obligation has actually been implemented since the adoption of PP Number 36 of 2021 but there are still many companies that cheat, therefore towards 2024 he hopes that government supervision and action will not be weak.

“At least it is in our interest to encourage companies to be obliged to implement a one-year UMP, it must be fair and made not only by the company but at least invite workers to negotiate to determine the nominal agreement,” said Raibudi.

What is even more difficult is that not all workers in Bali have the capacity and capability to negotiate with their respective companies, even if they already have a labor union.

Therefore, currently the focus of FSPM Bali is to harmonize the obligations and rights of companies and workers, instead of debating the increase in the 2024 UMP that has been determined.

The Bali Provincial Government has set the 2024 Bali UMP at IDR 2,813,672 or an increase of IDR 100,000 (3.68 percent) from the 2023 UMP of IDR 2,713,672. (Kmb/Balipost)