Mon, 30 Mar 1998

Beverage company workers go on strike

TANGERANG (JP): Some 150 workers of beverage company PT Polari Limunusa Inti went on strike over the weekend, demanding an increase in severance pay should they lose their jobs as a result of the prolonged economic crisis.

"We are asking for double the severance pay currently offered by the company in anticipation of the possibility of being fired later," said Effendi, one of the protesters.

Effendi had stopped working and had joined his colleagues to rally inside the company's complex on Friday. The workers left the complex in the afternoon and visited the office of the National Commission on Human Rights in Jakarta.

The company's personnel manager, Firdaus Daud, said the amount of severance pay demanded by the workers was too high.

"The company only pays the compensation based on the rule stipulated in the manpower ministry decree," he said.

The company bases its severance pay in line with Chapter 4 of Decree No. 03/1996 on dismissed workers at private companies.

The strike was held after the company, which produces F&N and Greenspot sodas, dismissed 15 workers as part of a policy to improve efficiency.

The director of the company, Herman Anggawinata, said the company was forced to dismissed employees because it had been suffering since December from the financial crisis.

He said some measures had been taken prior to the dismissals, including working in shifts and reducing production.

Herman said he had reported the dismissals to the Ministry of Manpower.

Herman, however, promised that the 15 workers, most of whom were long-time employees, would be rehired if the company could survive the crisis.

"We will call them to rejoin the company if conditions allow," he added. (09/41)