Meet the Next Country That Might Explode into Protests Against Corporate Plunder and Slave Labor Working Conditions
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A strike took place at a plant owned by the French retail giant Carrefour in 2011 in protests against the company’s avoidance of adhering to Indonesia’s labour laws and in demand of higher wages. The strike was organized by one of the country’s largest trade unions – Kasbi – which represents 130,000 workers and has as its slogan, “ Young, brave, militant.” Increasingly, labour organizers and workers have been connecting through social media, gaining access to more information than ever before and facilitating new ways to organize.
During the strike wave of 2011, Indonesia’s investment chief complained about the labour unrest in his country in an interview with the New York Times where he expressed his fears that it would “reduce profit margins and competitiveness,” adding: “My concern is this will trigger a domino effect ... it may trigger pressure for a rise in wages that not all companies can afford.” In May of 2013, Basri would go on to be appointed as the country’s finance minister.
In early 2012, Nike paid a $1 million out-of-court settlement for not having paid 4,500 workers at a factory for over 600,000 hours of overtime over the course of two years. The chairman of Indonesia’s trade union Serikat Pekerja National noted, “This has the potential to send shockwaves through the Indonesian labour movement... We have only just begun.”
In October of 2012, roughly 2.8 million factory workers across the country went on a one-day strike supported by several unions in 24 cities. In the capital of Jakarta, more than 700 companies were shut down for the day, while the government deployed 11,000 police officers and 4,000 military personnel to “secure” the rallies throughout the city. The mass protests were in opposition to companies hiring labour as “contract workers” and in demand of higher wages. Rallies were held across Jakarta and the country, where trade union leaders gave what the Financial Times referred to as “fiery speeches,” while the managing director of the American Chamber of Commerce in Indonesia complained that corporations viewed the existing labour laws as “ counter-productive.”
The mass protests continued into November, at which point the government announced it was considering a minimum wage increase of up to 50%, though corporations were warning they would move their factories elsewhere. Following continued agitation over the course of the month, which saw demonstrators entering factories, urging workers to join them and shutting down production, the new governor of Jakarta approved a 44% increase in the province’s minimum wage. Tens of thousands of workers continued to protest, while business leaders complained that, “the minimum wage should be lower.” As the protests threatened the President’s major infrastructure development plans, one large corporate group warned: “The frequent protests are obstructive... They are getting to be too much and must be stopped.”
As the Asian Development Bank (ADB) warned earlier in 2012, while many governments in Asia had been experiencing rapid economic growth, rising inequality had become a major problem that could lead to social unrest and create “ pressure to take on populist policies that are economically not very wise.” It advised Asian countries “to do something about it.”
In December, President Susilo Bambang Yudhoyono (commonly known as SBY) declared an end to the “era of cheap labour,” noting that wages were set to increase in a few provinces, though added that the government could not tolerate “disturbances in the production process.” A government economic minister stated in a speech that, “We should also take sides with businesses. Companies unable to comply with the minimum wage increases should immediately file a report with the government to demand a wage freeze. We will definitely facilitate them.” The threat of unrest and resistance had prompted several Asian countries – including Indonesia, Thailand, Vietnam, Malaysia and China – to begin increasing their minimum wages by the end of the year.