Consumer watchdog blasts PLN workers' strike plan

Consumer watchdog blasts PLN workers' strike plan

Fitri Wulandari, The Jakarta Post, Jakarta

The Indonesian Consumers Protection Foundation (YLKI) strongly
criticized a plan by the labor union of state-owned electricity
company PLN to hold a massive strike later this month, saying the
move would violate consumer rights to obtain electricity from the
monopoly.

"Why go on strike? Not every problem can be resolved by going
on strike. We cannot tolerate this attempt to secure their rights
by violating the rights of others," Sudaryatmo, a lawyer at YLKI
told The Jakarta Post over the weekend.

According to Sudaryatmo, a strike is an instrument normally
used in industrial relations where employees demand better salary
or improved conditions of service.

"Resorting to a strike outside the context of industrial
relations is still questionable," he added.

In the case of PLN, the workers are protesting against
government policy; that is not an industrial relations matter, he
asserted.

Earlier last week, the PLN labor union threatened to hold a
strike if the government proceeded with plans to sell the
company's core businesses to private investors. The union claimed
that the privatization drive would boost electricity prices.
However, analysts said that the workers were afraid that the move
could lead to layoffs.

The government has instructed PLN to unbundle its power
transmission, distribution and power plant units in the main
Java-Bali power system into separate entities, which would later
on be sold to private investors. The unbundling process should
start on Nov. 27, 2003, as stipulated in Electricity Law No.
20/2002. This is an initial step in the liberalization of the
country's power sector by 2007.

If the workers' union implements its strike threat it could
create chaos, as most Indonesians will still be celebrating the
Muslim Idul Fitri holiday on Nov. 27.

The union has said that during the strike workers would not
provide services to the public, including responding to calls if
there were power disruptions.

But PLN spokesman Muljo Adji said the company would not
tolerate any action by workers that could disrupt services to the
public.

"The management will discipline workers who go on strike,"
Muljo asserted.

The management has called on all workers, particularly
operators of main relay power stations, to work, even during
holidays, Muljo said. He added that during the Idul Fitri
holiday, PLN would dispatch some 10,000 operators of main relay
stations to make sure consumers had sufficient power supplies.

"The public should not panic: There will be no blackouts
during the Idul Fitri holiday," Muljo said.

According to Muljo, PLN's top management was now studying the
impact of the unbundling policy.

"Whatever the decision, PLN directors will take into account
employee concerns," Muljo said.

Meanwhile, Sudaryatmo suggested PLN workers should take legal
action to protest the government's policy instead of going on
strike.

"They should adopt a policy advocacy approach, for example by
filing for judicial review with the Constitutional Court. That
would be a more appropriate course of action," Sudaryatmo said.

Java and Bali are the first to be named as competition areas
due to their strong demand, huge population and huge power
generation. The two islands' installed capacity accounts for 80
percent, or 18,000 megawatts (MW), of total nationwide installed
capacity of 22,000 MW.

At present, PLN has two subsidiaries to manage power plants
across the Java-Bali area, which manage 80 percent of power
supply in the islands. PT Indonesia Power manages 132 power
plants with capacity of around 9,040 MW of the total Java-Bali
installed capacity.

The other is PT Pembangkit Jawa Bali (PJB), which operates
Muara Karang, Cirata, Gresik, Paiton and Brantas power plants,
with a combined capacity of around 4,300 MW.

Analysts have said that, with such a huge market, PLN would
attract many foreign investors.