Govt to provide compensation for PT DI workers

Govt to provide compensation for PT DI workers

Moch. N. Kurniawan and Fabiola Desy Unidjaja, The Jakarta Post,
Jakarta

The government rejected on Thursday demands to void a decision by
state aircraft maker PT Dirgantara Indonesia (PTDI) to suspend
indefinitely 6,000 employees, but promised to raise some US$50
million to provide them with compensation.

Speaking to reporters on Thursday, Vice President Hamzah Haz
said the compensation would be taken from the restructuring fund
allocated to the company.

"The Indonesian Bank Restructuring Agency (IBRA) has proposed
a program to save the company, which requires those who intend to
acquire PTDI to prepare US$50 million as a compensation fund for
the 6,000 dismissed workers," he said.

Hamzah said the manner of the suspension showed the
government's commitment to treating the company's employees
fairly, as "it (the suspension) was carried out in accordance
with the existing law."

By suspending most of its employees, the aircraft maker was
given a chance of recovery, he said.

"If the company's financial condition starts to recover, it
can reemploy those who have been suspended," he added.

Hamzah warned the employees against venting their
disappointment through violence, as it would only make additional
complications and discourage potential investors to acquire the
company.

The company suspended indefinitely 9,000 employees in May,
citing financial constraints. The decision sparked protests, as
employees claimed the had not been consulted before the policy
was carried out.

After days of demonstrating, the company allowed 3,000
employees to complete standing orders from both foreign and
domestic institutions.

The Bandung-based company plunged into a financial crisis with
the fall of President Soeharto in 1998, who regarded the
technology sector as the nation's pride. It was built with the
help of then research minister B.J. Habibie, who later succeeded
Soeharto following his downfall.

The post-Habibie administrations considered the company was
unhealthy and a financial burden to the state.

Thousands of PTDI employees took to the streets on Thursday
for the second time in as many days to renew their demand to be
reemployed. They gathered in front of the State Palace after
driving in a motorcade across the capital from the haj dormitory
in Pondok Gede, East Jakarta.

The rowdy protest could be heard inside the Palace, where
President Megawati Soekarnoputri was accepting credential letters
from new ambassadors from Canada, Kuwait and Slovakia.

The rally proceeded peacefully.

On Wednesday, the workers staged a protest at the House of
Representatives.

Some of the protesters said they would continue to demonstrate
either in Bandung or Jakarta until the government complied with
their demand.

In response to the demand, State Minister for State
Enterprises Laksamana Sukardi appealed to the employees to
understand that the restructuring program was aimed at saving the
company.

"We have to understand that the financial and organizational
conditions of the company need to be restructured. The company is
bleeding," he said.

He said the government was aware that the decision could not
satisfy everybody, but insisted that the survival measure was
unavoidable.

"We have all agreed that we will abide by the regulation and
the manpower minister will facilitate the problem-solving
process," Laksamana said, referring to Jacob Nuwa Wea.

He promised his office would open a training center for the
employees, so they could find placement at other state-owned
enterprises.