Wed, 01 Jun 1994

Golden Key Group workers laid off while boss stands trial

JAKARTA (JP): Hundreds of workers of petrochemical factories owned by the PT Golden Key Group are hovering between fear and hope as the owner, Eddie Tansil, stands trial for alleged corruption.

On Monday, workers started to desert plants in Cilegon, a two hour drive west of here, after the government moved to freeze Tansil's bank accounts. The governments tactics have practically crippled operations in the plants over the past couple of months.

The management laid off about 300 workers for two weeks without severance pay on Monday. Antara reported yesterday that most of the workers were from the operations department.

Golden Key Group personnel manager Farit Indro Santoso was not available for comment.

"Farit has rarely turned up to the office since the payment problem arouse two months ago," a worker said.

Those who believe that the Rp 800 billion (US$372 million) project will someday be rescued took their plight to the House of Representatives (DPR).

"This (lay-off) is a horrible blow to us, especially considering that management has failed to pay our April and May wages," said Masril, who along with a dozen others took their complaint to the House.

Legislators from the Armed Forces (ABRI) and the Indonesian Democratic Party (PDI) factions rekindled their hopes, promising they would ask the government to look into the problem.

House member Soetardjo Soerjogoeritno said PDI will raise the issue with the Attorney General's Office, the agency which is handling the Rp 1.3 trillion ($620 million) corruption case involving Tansil.

The workers' delegation told the ABRI and PDI factions they were is desperate need of their wages and clarification of their status.

Masril, who claimed to represent 200 workers of the group's subsidiary PT Cilegon Multiwahana Service, said he had brought the problem to the attention of relevant officials but his efforts brought no result.

He said the workers were hopeful that the state-owned Bank Dagang Negara Bank and BNI 1946 would eventually take over the factories.

Of the several plants under construction, only PT Cilegon Multiwahana Service and PT Hamparan Rejeki are nearing completion and are ready for operation.

Delegation member Kamal urged the House to use its authority and ask the minister of finance to authorize Bank Dagang Negara to pay the employees' wages.

But, apparently, some employees are so desperate that they can hardly wait for their fellows to go through channels in resolving their problems.

Employee Busroni told journalists that many frustrated workers are tempted to vandalize the plants to vent their frustrations.

"It's highly possible that angry workers will attack the factories if the matter is not properly handled and security not tightened," Busroni said.

No bus

Because of the financial complications, PO Maju has, since Monday, withdrawn the 10 buses it leased to transport Golden Key Group employees on the grounds that the company was unable to pay the rent.

PO Maju's action forced employees residing in distant Merak and Serang who relied on the buses to either scramble to find their own means of transportation or simply miss work.

"We won't operate the buses until Golden Key pays the arrears and renews the leasing agreement," PO Maju spokesman Hasan said.

So far, there has been no industrial action against Golden Key despite the dispute.(pan)