Upah Minimum Regional (UMR) in case of PT Freeport

Herfina Puspawardani19009079

What is the definition of

CompensationManagement? UMR?

Minimum Wage Regional in 2012 Total

DKI Jakarta Rp1.529.150,00

Bogor Rp 1.174.200,00

Bandung Rp 1.223.800,00

Papua Barat Rp 1.410.000,00 – Rp 1.450.000,00

Regulation

PERATURAN MENTERI TENAGA KERJANOMOR : PER-01/MEN/1999

UPAH MINIMUM

UU no 23 tahun 1999, in chapter 10 “Perlindungan , Pegupahan, dan Kesejahteraan

PT Freeport

Problems• Mining technicians want

an increasing salary and paid in dollar

Causing

• Strike Action

Moreover, it has given salary based on UMR

Why could strike action be happened?

• The average salary : $40.000 or about Rp360.000.000,00 per year, Rp 30.000.000,00 per month.

• They get : Rp210.000.000,00 – Rp230.000.000,00 or about Rp19.000.000,00 per month.

• They live in West Papua daily needs are more expensive than in another islands

Suggestion for PT Freeport?

• increase the base salary, monthly bonus, pension fund, another income protection in health and education for the children, and also for the allowance (housing)

• make an agreement with the employees

Conclusion

• PT Freeport has followed the rule and it is a good example.

• Actually not only unfulfilled UMR that can cause demostration, but also unfulfilled salary standard can.

• To avoid a demonstration happened that causing a big loss, a company can fulfill the employees proposed.

THANK YOU!