Labor Wages Should Increase 50 Pct

Jakarta (Antara) - Labor wages in 2014 should increase 50 percent from this year's as a consequence of fuel oil price hike, Secretary General of the Action Committee for Social Security (KAJS) Said Iqbal said here on Tuesday. "The increase is a consequence of the government's policy to raise the prices of subsidized fuel oils," he said. He said the increase in 2013 labor wages to Rp2.2 million becomes meaningless because of the subsidized fuel price hike which has lowered the purchasing power of workers by 30 percent and led to double-digit inflation rate. "The labor wages have eroded due to an increases in basic commodity prices, transportation fares and house rents," he added. The increase in labor wages is intended to restore the purchasing power of workers, he said adding workers are still opposed to the subsidized fuel price hike. In 2013, labor wages increased by around 20 percent to 30 percent, but in mid-June the government decided to raise the prices of subsidized fuels by about 30 percent which caused the prices of basic necessaries to increase. Manpower and Transmigration Minister Muhaimin Iskandar said the labor wages do not need to be increased. He said the increase in the prices of basic necessaries cannot be an excuse to raise labor wages as the workers who are directly affected by the fuel price hike receive temporary direct cash assistance (BLSM). (*)