EAST KALIMANTAN MINIMUM WAGE FOR MINING SECTOR

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Midtest Presentation of Compensation Management Course by Sandro Yosua

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EAST KALIMANTAN MINIMUM WAGE FOR MINING SECTOR

  1. 1. SANDRO YOSUA/10208037
  2. 2. INTRODUCTION LEGAL ASPECT IN COMPENSATION MANAGEMENT CASE STUDY (PT. Bara Jaya Energi) CONCLUSION
  3. 3. Compensation Management? - JACK WELCH “If you pick the right people and give them the opportunity to spread their wings - and put compensation and rewards as a carrier behind it - you almost don’t have to manage them.”
  4. 4. Compensation Management The practice of balancing between the employer- employee benefits in an organized section. - Sandro Yosua
  5. 5. LEGAL ASPECT IMPACT TO COMPENSATION CASE STUDY OF A COMPANY REVIEW AND ANALYSIS SOLUTION
  6. 6. “Surat Keputusan Gubernur Kalimantan Timur nomor 561/K.437/2011 tentang Penetapan Upah Minimum Sektor Propinsi (UMSP) Sektor Pertambangan tahun 2011” East Kalimantan minimum wage: Rp. 1.360.000,-
  7. 7. Minimum wage is the minimum standard used by employers to give benefits to employees in their organization. Because the Cost of Descent Living in every province differs, there is the term “Province’s Minimum Wage”. only valid for single employees with none to one year of work experience Based on Decent Living Cost
  8. 8. DECENT LIVING
  9. 9. PT. Bara Jaya Energi
  10. 10. province minimum wage regulation Rp. 1.360.000,-. Bara Jaya basic wage Rp. 1.220.000,++.
  11. 11. Bara Jaya Energi uses a traditional pay structure that is jobs-based structure Job based pay structure pays their employees based on experience and the type of position
  12. 12. Compensable Factors Degree Weight Total 1 2 3 4 5 Skill: (10%) Mental 5% 15 Experience 5% 10 Effort: (40%) Physical 20% 80 Mental 20% 80 Responsibility: (10%) Effect of Error 5% 20 Inventiveness 5% 5 Working Conditions: (40%) Enviroment 20% 100 Hazards 20% 100 Total 410
  13. 13. Compensable Factors Degree Weight Total 1 2 3 4 5 Skill: (40%) Mental 20% 60 Experience 20% 60 Effort: (30%) Physical 15% 15 Mental 15% 45 Responsibility: (20%) Effect of Error 10% 20 Inventiveness 10% 10 Working Conditions: (10%) Enviroment 5% 5 Hazards 5% 5 Total 220
  14. 14. Rp. 1.360.000 Rp. 2 – 4 million
  15. 15. Non-motivated employees Because very near the minimum boundary, it is likely to get a strike every year
  16. 16. Raising the province minimum wage for the mining sector mining companies will have no choice but to rise their mine labors payment according to the new regulations. This action is taken to better value the mine labors life threatening working conditions.
  17. 17. The province minimum wage of the mining sector meets up the cost of decent living, but the job value of a mine labor is higher than the cost of the minimum wages. The solution to this problem is to increase wages to an appropriate value of a life threatening job such as a mine labor.
  18. 18. THANK YOU

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