500 Multipolar employees seeking compensation

JAKARTA (JP): More than 500 employees of private retail company PT Multipolar Perkasa visited the Jakarta Legal Aid Institute yesterday to seek legal advise over their employment status.

They demanded that the company, which operates Wal-Mart stores in Pluit, North Jakarta, and Karawaci, Tangerang, give them severance pay in line with government regulations on the dismissal of workers.

The employees' spokeswoman Rika S. Miranti said that 1,600 employees had lost their jobs after the company closed both stores following massive riots on May 14.

Wal-Mart in Karawaci was damaged but the outlet located in Mega Mall Pluit was left unscathed by the looting mobs.

"We've asked the company to clarify our status and give us the appropriate severance pay if it intends to dismiss us," Rika said.

She said employees' representatives had tried without success to arrange a meeting with company executives.

In an earlier informal meeting, company executive Agus Mardiyanto urged employees to resign due to the bad performance of the company, she said.

She explained that employees had threatened to hold a big demonstration at the company's head office at Gedung Menara Matahari, Karawaci, tomorrow to demand that company president Jefry Wongsono clarify their status.

Dozens of suppliers also visited the institute's office yesterday to seek help in reclaiming debts totaling Rp 16 billion owed to them by the giant retailer.

Susan, who used to deal with Wal-Mart, said the company had stopped paying its suppliers last November on the grounds that it was involved in a dispute with Wal-Mart Inc. of the United States.

"We don't care about the dispute. We want payment. Most of us are just small-scale suppliers," she said.

The suppliers said they would join the employees' planned demonstration.

Multipolar, a subsidiary of the Lippo Group, is suing Wal-Mart and its expatriate executives for losses worth US$98.8 million which were allegedly caused by improper business conduct.

The plaintiff alleges that Wal-Mart mismanaged a joint venture to open two Wal-Mart stores in Indonesia, manipulated data and issued misleading budgets.

Wal-Mart has in turn accused Multipolar of violating their agreement by purchasing shares in PT Matahari Putra Prima, a rival retailer. (jun)