FAQ: How Can Indonesia Improve Labor Conditioons?

What are the working conditions in Indonesia?

There have been well-documented charges of sweatshop conditions ( forced overtime, unsafe workplaces, and inadequate pay) in many of these export-oriented factories. The government sets minimum wages in each region; in Jakarta it was set at Rp286,000 (US$33) per month in April 2000.

Does Indonesia have cheap labor?

Some studies have found Indonesia’s wage costs to be the lowest in Asia, a factor that has attracted footwear and textile firms in recent years to relocate to Indonesia from China and Vietnam in recent years.

What are labor conditions?

These include their entitlement to wages and benefits, hours of work, overtime arrangements and overtime compensation, and leave for illness, maternity, vacation or holiday, that at a minimum comply with national law.

Why are wages so low in Indonesia?

Wages are so low in Indonesia because that keeps the unemployment rate low. This in turn prevents a whole raft of social problems caused by high unemployment.

How much do Nike workers get paid in Indonesia?

Much of Adidas’ and Nike’s sportswear is made in Indonesia, where 80 percent of workers in the garment sector are women and some make as little as 86 euros ($102) a month while others do not earn the legal minimum wage, according to the CCC’s report.

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Which country has lowest labour cost?

Here are the 15 countries with cheapest labour having lowest rates of labour-ship.

  • MALAWI – $412 PER YEAR.
  • LIBERIA – $435 PER YEAR.
  • GHANA – $488 PER YEAR.

Which country has most expensive Labour?

Countries With Highest And Lowest Hourly Labour Costs In the EU And Eurozone, 2017

  • Denmark: €42.5.
  • Belgium: €39.6.
  • Luxembourg: €37.6.
  • Sweden: €36.6.
  • France: €36.0.
  • Netherlands: €34.8.
  • Germany: €34.1.
  • Austria: €34.1.

Where is the cheapest labor?

Besides Denmark, you’d find high labor costs in countries such as Luxembourg, Belgium, Sweden and the Netherlands. The nations with the lowest rates include Romania, Lithuania, Hungary and Latvia.

What is the poverty rate in Indonesia?

In 2020, about 9.78 percent of the Indonesian population lived below the poverty line, an increase from the previous year. This percentage slowly decreased from approximately 17.4 percent in 2003. The poverty line is the minimum amount of income needed for day to day necessities.

What unemployment rate is considered high?

The unemployment rate in most states peaked in April 2020 and since declined. In April 2021, the states with the highest unemployment rates were Hawaii (8.5%), California ( 8.3 %), New Mexico (8.2%), New York (8.2%), and Connecticut (8.1%).

What is an example of an unfair labor practice?

Examples include: Refusing to process a grievance because an employee is not a union member. Threatening an employee for filing a ULP charge. Refusing to negotiate in good faith with an agency.

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Which country has the best Labour laws?

5 Countries with the Best Employment Laws

  1. Austria. Even though Austria does not have any minimum wage law, some sectors such as domestic and education, provide a minimum wage to their workers.
  2. Belgium. Belgium is another country that helps protect its workers.
  3. Denmark.
  4. Finland.
  5. Germany.

How can we solve labor problems?

There is no magic solution to the skilled labor shortage in manufacturing, but there are steps companies can take to mitigate the problems.

  1. Eliminate information silos.
  2. Increase employee productivity.
  3. Empower current workers.
  4. Manage the workflow.
  5. Fill in the technology gaps.
  6. Change the culture.

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