Govt knocks back demands of railway workers

The Jakarta Post, Jakarta

he government has turned down demands from thousands of protesting workers of state railway company PT Kereta Api Indonesia (KAI) to reinstate their status as civil servants, thus making more likely the possibility of a nationwide strike.

Minister of Transportation Hatta Radjasa said that an interdepartmental meeting had concluded that the government would not revoke Ministerial Decree No. 18/1992, which changed the status of KAI workers to that of regular company employees.

He added that he had discussed the matter with President Susilo Bambang Yudhoyono.

Thousands of workers and retirees of KAI held a rally in front of the ministry on Wednesday, calling on the government to drop the decree.

Unsatisfied with the minister's response, the protesting workers marched to the Constitutional Court, demanding a judicial review of the decree.

But a spokesman of the company Ahmad Sujadi was quoted by Antara as saying that there was no response from the court.

He reiterated that workers would hold a nationwide strike on Aug. 1-3 unless their demand was fulfilled.

According to the decree, the status of KAI workers would be changed from civil servants to regular employees.

As a consequence of the status change, workers and retirees would receive lower payments than civil servants, while also not enjoying other benefits, such as the annual additional month's salary given to government employees.

Responding to the protest, Hatta could only promise that the government would fulfill its responsibilities by disbursing Rp 500 billion (US$52.6 million) as compensation for the workers as a consequence of the status change.

"This is just an administrative problem. We have discussed this with the State Minister for State Enterprises last night. We have already thought about administrative solutions to this case," he added without providing details.

KAI spokesman Noor Hamidi had said that the company hoped that workers would not go on strike because it would only hurt the public, who were highly dependent on the train service.

However, head of the railway worker's union Amien Abdulrachman said that a strike was necessary to send a message to management and the government about the poor economic situation of KAI workers and retirees.

Elsewhere, the workers also reiterated their demand that the government change the current management, led by president director Omar Berto, as soon as possible, due to its poor track record.

State Minister for State Enterprises for State Enterprises Sugiharto indicated last week, in the aftermath of the railway accident in Pasar Minggu, South Jakarta, that the government was planning to replace Berto soon.