"It is the bad outsourcing service companies that are responsible for the deterioration of employers` relations with workers, and this has triggered the demonstrations," Association of Indonesian Employers (Apindo) general chairman Sofyan Wanandi told ANTARA News here on Wednesday.
Some 3 million workers took to the streets in many cities across the country on Wednesday, demanding higher wages, revocation of the outsourcing system, and implementation of health insurance for all Indonesian citizens by January 1, 2014.
Sofyan pointed out that many outsourcing service companies took commissions from the wages employers gave to workers.
"Outsourcing service companies also have a right to withdraw workers already contracted by companies. These are issues that must be settled," he said.
"Not all outsourcing companies are bad but many of them are owned by state officials, worker union leaders, user companies and company officials," Sofyan noted.
"The government must monitor and put the outsourcing service companies in order so workers can be assured of regular income," he said.
Therefore, Sofyan added, the government must immediately revise Manpower Law No 13/2003, especially Articles 64, 65 and 66 that regulate outsourcing agreement between outsourcing service companies and the ones using their workforce.
"There must be a cooperation agreement between outsourcing service companies and user companies on paper. This will minimise the chances of disputes. And in case they do occur, there will be a legal framework in place resolve them," he explained.
"Actually, that the word `outsourcing` is not found in manpower law. The legal term used for it is `fixed period work agreement," Sofyan pointed out.
"Workers often misinterpret the term because they are not familiar enough with PKWT to seek action against their employers," he explained.
Sofyan stated that the government and the House of Representatives had been slow in responding to labour problems.
"As a result, demonstrations continue to hurt not only businesses but also the investment climate in the country," he said.
"Therefore, the central as well as regional governments must actively resolve the various labour problems across the nation," Sofyan added.