Indonesian Political, Business & Finance News

Govt knocks back demands of railway workers

| Source: JP

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.

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