Wed, 23 Jun 2004

Angry workers take executives hostage in Samarinda

Rusman, Samarinda

After striking for two weeks, workers at two plywood firms in Samarinda, East Kalimantan, raised the stakes on Tuesday, taking two of the companies' executives hostage.

"We had to take them hostage because they are the only executives who have direct contact with the companies' owner in Hong Kong," said Benny Patty, the coordinator of the striking workers.

The two executives in question are Wahyudi Manaf and Bonar Sianturi, the heads of the operations divisions at the two companies, PT Kalimanis Plywood Industry (KPI) and PT Santi Murni Plywood (SMP). The two are being held in a building on the premises of PT KPI and no one is being allowed in to see them.

The striking workers are demanding the ownership pay them two months' salary that they say is owed them.

Wahyudi and Bonar are only being allowed to speak to the owner of the firms, namely the Hong Kong-based Shine Hill Limited.

In addition to taking hostages, the some 3,000 striking workers are also threatening to seize the companies' assets if they are not paid immediately.

Only a few police officers were at the companies' offices on Tuesday, unlike the previous day when dozens of officers had been deployed to the area.

No employees were working in the factories of the two firms, located on the outskirts of Samarinda, and the production lines of both companies were idle.

Workers, most of them women, sat in groups around the buildings, some accompanied by their children.

"My son was just expelled from school because I couldn't pay the school fee. We are also afraid that we will be evicted from our rental house because we haven't paid the rent this month," said Rajiah, whose husband also works for one of the companies.

The workers went on strike two weeks ago to demand the companies pay them their salaries.

According to Wahyudi, the company was unable to pay the salaries because of a slump in the plywood business, which left the companies unable to meet their sales targets.

However, the firms' managements have agreed to pay the workers Rp 1.5 billion (US$166,666) as a stopgap until their salaries are fully paid. Each worker will receive Rp 500,000, short of the salaries of between Rp 800,000 and Rp 1 million they are entitled to.

The money will be distributed this week, according to the companies. Representatives of the companies and the workers then plan to meet to discuss the payment of the remainder of the workers' salaries.