Container port workers threaten to go on strike

Container port workers threaten to go on strike

JAKARTA (JP): Workers of the Jakarta International Container
Terminal (JICT) in Tanjung Priok seaport, North Jakarta, on
Tuesday threatened to go on another strike on June 5, if the JICT
management continued with its restructuring plan.

Chairman of JICT labor union, Ermanto Usman, told The Jakarta
Post that a total of 1,200 workers would go on strike if the
board of directors' plan to downsize the company's workers by 20
percent by March 2001 still continued.

"They said it's for the company's efficiency. Talking about
efficiency, why don't they cut the unbelievably high salaries of
expatriates who work here? Not to mention the alleged corruption
and nepotism practices in this company," he said.

Ermanto, along with some 850 workers, went on strike at the
House of Representatives on Monday, leaving at least 2,000
containers untouched on the docked vessels and causing at least
Rp 2 billion in losses for JICT.

The workers said they were dissatisfied with the privatization
of terminal activities at the international seaport, claiming
that the deal was full of irregularities.

They also demanded the government review its deal with a
foreign company and investigate the people who were involved in
the purchase of the company's shares and in the replacement of
the JICT president director.

In March 1999, Hong Kong-based Grosbeak Pte. Ltd. bought 51
percent of the shares of PT. Pelabuhan Indonesia (Pelindo) II,
the parent company of PT. JICT, at US$215 million (about Rp 2
trillion at that time), as part of the Indonesian government's
policy to privatize its state companies due to the monetary
crisis.

"The sale price was much lower than the JICT estimated value
of at least US$350 million," Ermanto said.

The estimated figure was calculated by comparing the
privatization of Surabaya's Tanjung Perak Container Terminal
worth US$179 million, through the sale of 49 percent of its
shares, which was won by Australia's P&O.

"The Tanjung Priok Port's facility is twice as good as Tanjung
Perak. Consequently, the sale of Tanjung Priok seaport has caused
at least Rp 1 trillion in losses for the country.

"We suspected irregularities between the foreign company and
the then State Minister of State Enterprises Tanri Abeng and PT
Pelindo II president director Herman Prayitno," Ermanto said.

Expatriates

He said JICT has since hired 14 expatriate workers who made
all the decisions and were paid much higher salaries than local
staff.

"The JICT cooperatives were given a one percent share, but
then without prior notice, the company sold nine-tenths of it to
Grosbeak for US$3.7 million (Rp 32 billion). But we only received
Rp 12.8 billion. Where did the rest of the money go?" Ermanto
said.

"They said the money was used to pay the capital gains tax.
But when we checked it with the tax office, there wasn't any such
payment by JICT," he added.

Ermanto said the labor union has been investigating the case
for a long time and even held a dialog earlier this month to
study the case with experts from the Indonesian Institution of
Reform Advocacy (LARI) as well as economist Sjahrir and
legislator Paskah Suzetta.

The dialog concluded that collusion, corruption and nepotism
(KKN) allegedly occurred in the privatization of JICT.

PT. Pelindo II spokesman Soedjarwo denied the alleged
irregularities in the privatization.

"The price has been calculated with standard estimation
involving several ministries. Don't compare it with Tanjung Perak
as it has several better facilities and a higher growth rate of
16 percent, while ours is only six percent," he said, citing that
the Surabaya seaport was 10 years younger than Tanjung Priok.

As for the sale of the cooperatives' 0.9 percent share,
Soedjarwo said the company sold it because the government needed
some money.

"Of course there are no JICT names in the tax office because
it was put under the name of the Minister of Finance," he said.

He said the expatriates received higher salaries because they
are paid in US dollars, but over the past five months the company
has raised the salaries of JICT employees by 58 percent and
increased the company's employment rate.

"On the second agreement with Grosbeak, we agreed to reduce
the employment rate by 20 percent. But the management agreed to
cancel the agreement so there won't be any employee reduction,"
he said. (09)