Gudang Garam resumes operation early

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)