Indonesian Political, Business & Finance News

500 Multipolar employees seeking compensation

| Source: JP

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)

View JSON | Print