Furniture workers wait for bonuses

Nana Rukmana, The Jakarta Post, Cirebon

Some 20,000 workers in Cirebon regency's rattan industry will have a somber Idul Fitri, with many not getting their annual bonuses due to worsening business conditions.

On Thursday, the workers, who usually received their Idul Fitri allowances two weeks before the day, had still not seen their money.

"Until now, we still haven't got our annual bonus payment. We don't know whether we'll get it or not," said Nesri, a 24-year- old worker.

Another worker, Ika, 25, who works for CV Mekarsari, said there had been no announcement from the company's management as to whether the workers would get their bonus.

The amount of the annual bonus is usually the same as the workers' monthly wage. Last year they were given Rp 470,000.

"We don't know the amount of the bonus this year. And we don't even know whether we'll get it or not," Nesri said.

Chairman of the Indonesian Furniture and Handicraft Businessmen's Association in Cirebon, Sumartja, admitted that many rattan companies did not have the financial ability to pay their workers the bonus.

"The number (of companies that cannot pay the Idul Fitri bonus) is large; 30 of the 127 big companies in operation (cannot pay), and each has between 500 and 1,500 workers," Sumartja said, estimating that around 20,000 workers might not receive it.

"We continue to push owners to meet their obligation to pay their workers' Idul Fitri bonus," he added.

He blamed the companies' inability to pay on a downturn in business following fuel price increases, which pushed production costs up 20 percent.

"The increase in production costs has put a further burden on businessmen who are also obligated to pay various fees to provincial and regental administrations as well as high taxes and shipping costs," he said.

He said the increase in fuel prices only compounded the industry's problems, which was also struggling against minister of trade regulation No. 12/2005 that now allows export of raw rattan abroad.

"The regulation is a massive blow to the national rattan industry. By allowing exports of raw rattan, it means we're providing ammunition to our competitors, China and Vietnam, to kill us. With the permit, China and Vietnam will certainly have enough supplies of raw materials for their rattan furniture industry," Sumarjta said.

He also blamed the introduction of the regulation for a significant drop in rattan furniture exports from Tegalwangi. "In the last three months, exports from Tegalwangi dropped by 60 percent," he said.

Before July, rattan furniture exports to countries like Japan and the U.S. stood at 2,000 containers, while in July it was only 900 containers. "In the following months, exports will drop to about 700 containers," he said.