Garment companies hit with strike to reopen

Garment companies hit with strike to reopen

JAKARTA (JP): Two garment companies, PT Rajabrana and PT
Wisindo Agung, which stopped activities following a week-long
labor strike, have agreed to begin operations again and employ
all workers, a senior official said on Tuesday.

"The two companies managements have agreed to begin operations
of their factories again on Thursday and all workers, who were
involved in the strike, will be allowed to work again," Director
General for Industrial Relations and Labor Standards Suwarto told
reporters, after a meeting with representatives of the companies
managements at his office.

The garment factories, which employ about 7,000 workers, were
closed last Saturday, following a strike demanding that the
managements not cut their monthly salaries for the income tax
payment.

Due to the closures, the workers went to the Bogor Legislative
Council to file a protest over the action taken by the
managements and to demand reemployment.

Chairman of the Foundation of Legal Guidance for Workers
Ariest Merdeka Sirait, who represented the workers in the
dispute, blamed the managements for the strike because they
enforced the income tax law on all workers whose wages were below
the taxable income category.

"The companies have hundreds of married workers whose monthly
salaries are below the taxable income group. Moreover, the firms
refused to disclose the workers' income taxes paid to the
directorate general for tax," Ariest said.

Suwarto said that all citizens, including workers, are obliged
to pay income tax to the government.

"Any company refusing to fulfill its obligation will be
punished, especially if the firm is found guilty of manipulating
their workers' income tax payments," he said.

Director of Labor Standards Tjepy F. Aloewie, who accompanied
Suwarto in the meeting, said that, according to the new tax law,
the taxable income is set at Rp 1.72 million a year for an
unmarried worker and at Rp 2.2 million for a married worker,
without children.

"Any unmarried worker, whose monthly salary is above Rp
144,000 is obliged to pay income tax, while a married worker,
whose monthly salary is less than Rp 184,000 is not subject to
the income tax law," he said.

Suwarto said the managements of the two companies also
acknowledged that the labor strike was caused mainly because of
unsatisfactory communications with their workers and the local
manpower ministry office. (rms)