Great River, workers settle wage dispute

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)