Jakarta (ANTARA News) - The Alliance of Confederations and Federations of Workers Unions said the planned fuel price hike will reduce workers` buying power or wages that have just been raised by 15 to 30 percent.

"So the increase of 30 percent is in reality only 5 percent," asserted Roni Febrianto, deputy president of the executive board of the Federation of Indonesia Metal Workers Unions (FSPMI) for information and communication and research and development, on Friday.

In view of this, he noted the government must consider all potential negative and domino effects of the plan before implementing it.

"For workers, the decision to raise the gasoline price will be painful," he said.

Febrianto acknowledged that the gasoline price hike would increase workers` transportation and boarding costs by 20 percent, so their recent wage increase would then be minus 10 percent.

"In other words, the workers` wage is not rising but declining by 10 percent," he said.

Febrianto noted that the planned gasoline price hike would also burden employers, forcing them to increase efficiency by, among other things, laying off workers.

In view of this situation, the Alliance has firmly rejected the government`s plan to raise fuel and, later, electricity prices.

Febrianto said the Alliance demands health insurance and reasonable wages and not just BLSM (direct cash aid for the poor) and Raskin (rice for the poor), which it considers to be vulnerable to corrupt practices and increasing debt.

To compensate for the gasoline price hike, the government plans to distribute BLSM and Raskin to reduce the burden of the poor who will be greatly affected by the hike.

Febrianto asserted that the Alliance plans to conduct extra-parliamentary activities across Indonesia as well as a general strike to enforce their demands.

He said the Alliance with members numbering in the millions includes the Confederation of the All Indonesia Workers Union (KSPSI), the Confederation of Indonesia Workers Union (KSPI), the Confederation of Indonesia Welfare Workers/Laborers Union (KSBSI) and the Federation of Textile, Clothing and Leather Workers Union of the All Indonesia Workers Union (FSPTSK).

Other groups included in the Alliance are the Federation of Indonesia Labor Union (FSBI), the Organization of All Indonesia Workers (OPSI), the Employee Communication Forum Workers Union (SP-FKK) of PT Dirgantara Indonesia and the Association of the Indonesia Independent Manufacturing Workers Union (GSPMII).
(A035)

Editor: Ella Syafputri
Copyright © ANTARA 2012