Sat, 01 Aug 1998

Cassette factory workers complain over dismissals

JAKARTA (JP): Dozens of workers from a West Jakarta cassette manufacturing plant sought advice from the Jakarta Legal Aid Institute yesterday over their employers' attempts to force one third of the company's 500 strong workforce to resign.

The employees of PT Metro Utama Raya, which produces HDX cassettes, have refused to acquiesce to the company's request.

According to the workers, the company management promised to retain the entire workforce after they held a two day demonstration at the factory earlier this month.

In a tripartite meeting on July 8, the company promised not to fire any of the employees who took part in the demonstration, Sutrisno said.

The management also promised to increase the minimum wage and meet some of the workers' other demands, he said.

"The company is now threatening to suspend us for three months and cut our salaries by 50 percent if we refuse to sign the resignation letters today," Sutrisno, the workers' spokesman, said.

The workers have refused to resign despite a company pledge to issue severance pay in accordance with Ministry of Manpower regulations, he said.

Sutrisno said the company had tried to force the workers to resign yesterday in a bid to avoid being burdened by the 15 percent increase in the official minimum wage which takes affect from today.

According to new government regulations, the workers' should now receive a daily minimum wage of Rp 6,612 per person. It was previously Rp 5,750.

Surya Tjandra from the institute advised the workers not to sign the resignation letters and to keep on working.

"We will summon the company management on Monday to discuss the matter," Surya added.

A number of companies here have attempted mass dismissals as a result of the new regulation and the country's ailing economic condition.

Some companies have tried to force workers, particularly those showing militant tendencies and who have been involved in demonstrations, to resign.

One such company is PT Mayora Indah, a biscuit producer which tried to dismiss 200 of its 6,000 workers, Surya said.

Bekasi steel manufacturer PT Gunung Garuda has also been reported to the National Commission on Human Rights by 500 of its employees for trying to force some of their colleagues to resign. (jun)