Wed, 10 Jun 1998

164,000 workers quit PT Jamsostek

KUDUS, Central Java: More than 164,000 employees of cigarette factories in the city yesterday announced they were withdrawing from the state social security program PT Jamsostek.

Mohammad As'ad, the chairman of the trade union in the tobacco, cigarette, food and beverage sector, said here yesterday that the workers would withdraw all the money appropriated from their salaries for the insurance program and would establish their own social security program.

"We quit the social security insurance scheme run by PT Jamsostek because the company's management was not transparent in managing the workers' money," he said, pointing out that funds from PT Jamsostek were used to finance the deliberations of the controversial labor law.

However Jamsostek's chief representative in the city, Henry, said that he had yet to receive any statement from the workers on their exodus from the state insurance company.

"It's their right to quit the social security program," he said, as quoted by Antara. (rms)