Gudang Garam resumes operation early

SURABAYA (JP): The biggest clove cigarette company, PT Gudang Garam, resumed operation on Thursday in Kediri, three days earlier than expected following pressure from the local administration.

The calls for an end to the suspension came from the Kediri administration in a meeting between the publicly-listed cigarette producer and East Java authorities on Wednesday.

The meeting attended by, among others, East Java Governor Imam Outomo, Military chief Maj. Gen. Sudi Silalahi and Police chief Maj. Gen. Dai Bahtiar was held at the Grahadi Hall at the Governor's Office complex.

Goenanto Tanoerahardjo, human resources development and general affairs manager, said the urging was not a pressing prescription and his company did not feel as though it had been ordered by the authorities to resume operation.

"The government (including local administration) considers Gudang Garam is one of the country's assets. If its suspends operation for too long, new problems will probably emerge," he said, adding that the authorities also guaranteed security for the company.

The local administration did not want 42-year-old PT Gudang Garam to halt activities in Kediri, some 125 kilometers southwest of here, he said.

More than 40,000 workers, mostly women, had to stay at home during the two-day suspension on April 11 and 12.

"Local businesses in Kediri also slowed down. Food stalls and vendors operating close to the factory had particularly suffered from the situation. Becak drivers, had also complained as they usually transported the workers to and from the factory," a resident said.

On Thursday not all employees returned to work. A worker, who asked for anonymity, said the announcements on local radios were aired on Wednesday evening. "I believe many of us did not listen to the radio at that time."

PT Gudang Garam suspended operations on April 11 following a series of protests over higher salaries and transparency on the part of management since March 30.

The temporary closure of the factory started after two drivers' assistants received Rp 12,000 each when they resigned. The management meant the money for days off allowance, but the workers thought it was severance pay. The misunderstanding led to a protest on April 11, which ended in the suspension of the factory operation. (nur/sur)