Thu, 19 May 1994

Company refuses to meet its workers' demand

JP/3/Bike/0

Company refuses to meet its workers' demand

JAKARTA (JP): The management of PT Menara Djaja Industri Nasional Indonesia, a manufacturer of bicycle parts, told city councilors yesterday that it is unable to meet its workers' demand for transport and meal allowances.

"We cannot afford giving them such allowances because it would force our company into bankruptcy," said Suyanto, the company's production manager, who acted as a spokesman for the company's owner.

Suyanto was accompanied by Mrs. Inneke, the owner of the company, during a hearing with the city councilors from commission E on manpower affairs.

More than 200 workers went on strike late last month, demanding transport and meal allowances and representatives of the workers have met with city councilors. As a result, the councilors summoned the company's management for a response.

Suyanto said that at present his company faces tight competition as more and more companies are manufacturing bike parts.

"Many companies which used to be in this business went bankrupt. We are among those which have survived the competition," Suyanto said.

Many unsold spare parts are lying in the storage, Suyanto said, adding that customers often defer their payments while on the other hand the company has to buy raw materials on a cash basis.

During the hearing, Suyanto added the company guaranteed that it will not dismiss workers who took part in the strike, so they do not need to be afraid. (arf)