Great River, workers settle wage dispute
JAKARTA (JP): PT Great River Industries, one of Indonesia's largest garment producers, agreed yesterday to improve the welfare of its employees after a prolonged dispute between the company and its workers.
The company signed a collective labor agreement with its employees yesterday, in a move which Director General of Industrial Relations and Labor Control Suwarto said showed that better understanding and cooperation had developed between the employers and the employees
The agreement provides for a 25 percent increase in spending on the workers' welfare, covering housing facilities, health care and retirement funds.
Suwarto welcomed the agreement, praising both the company's management and the workers for their willingness to settle the long-standing dispute through a consensus which he described as beneficial to both parties.
Yesterday's signing ceremony was attended by members of the Association of Indonesian Entrepreneurs, the All Indonesian Workers Union (SPSI), as well as the company's management and workers. Also sealed at the ceremony was a similar agreement, signed between a subsidiary of the company, PT GST Utama Garment, and its employees.
In July Great River's workers lodged a protest with both the House of Representatives and non-government organizations, demanding that their salary be increased in compliance with the government's minimum wage.
Lo S.H. Ginting, a lawyer for the company who has been dealing with strikes, told The Jakarta Post yesterday that the protests had been sparked by a misunderstanding of the government's labor laws on the part of the workers.
Ginting said the minimum wage of Rp 4,600 ($2.30) was inclusive of transport money and meal allowances, whereas the workers had erroneously believed the figure was only the basic wage, excluding the allowances.
"But it is no longer a problem, after consultation with the manpower ministry and the workers," he said. However, certain "irresponsible parties" have convinced some of the workers not to not give up their demands for a pay increase, he added.
Ginting, a former legislator and businessman, said that the disruption of Great River Industries would not have happened if only the SPSI and the manpower ministry had given clearer information to the workers.
Suwarto told the workers that they should improve their skills and productivity, called on the company's management to give priority to the workers's safety and welfare, while boosting production.
PT Great River currently employs 11,000 workers, 7,000 of whom work in its factories. The other 4,000 work in the firm's administration and marketing sections.
A company spokesman said that, to keep up with ever-growing challenges, the firm is committed to improving the quality of both its workers and its products. (03)