Indonesian Political, Business & Finance News

Angry workers take executives hostage in Samarinda

| Source: JP

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.

View JSON | Print