Gudang Garam suspends operation after labor strike

SURABAYA (JP): Giant publicly listed clove cigarette producer PT Gudang Garam in Kediri, some 125 kilometers southwest of here, suspended operations for five days starting on Tuesday following a huge labor strike for better conditions.

Reports said that a group of workers blocked delivery trucks from leaving the factory compound on Tuesday morning. Others persuaded thousands of colleagues, who were approaching the factory to start work, to join in the strike.

No clashes were reported at the factory.

Disgruntled workers had staged a series of demonstrations since March 30 over arbitrary actions by the management, workers said.

The workers are demanding higher salaries, changes in their status and transparency on the part of management.

The protests were a prelude to Tuesday's strike, which was triggered by the resignation of two drivers' assistants, Poniman and Suyanto. The two both got Rp 12,000 extra when they resigned. This apparently offended the workers, who thought it was severance pay. They then announced a strike to demonstrate solidarity.

The management, through its spokesman Mohammad Hasyim, said the total of Rp 24,000 for Poniman and Suyanto was supposed to be leave pay for days off in January and February, not severance pay.

Hasyim also confirmed the suspension of the company's operations, saying that according to a circular signed by the human resources development and general affairs manager, the suspension was meant to avoid the situation from worsening, which could affect both the workers and the general public.

The letter also said that during the five-day closure, casual workers would not get any compensation. "They must reregister if they want to continue working in the company," the letter said.

The circular also said the strike was against the law, but gave no detailed explanation.

According to Hasyim, the management was still discussing the strike seriously, but no deals had been reached with the workers.

"As a publicly listed company, all substantial policies must get approval from shareholders. Moreover, some of the commissioners are abroad. A decision is expected to be issued on April 17," he said.

Hasyim was not available to answer questions relating to how much the 42-year-old cigarette company would lose during the five days.

Meanwhile, Kediri Police chief Lt. Col. Ign. Soembodo said some 500 police officers had been deployed to control the strikers. Additional police officers from the nearby town of Tulungagung are included in the number.

"Luckily there has been no violence," he said.

The management has strongly denied that personal conflict within the Wonowidjojo family, who own the company, was behind the strike. (nur/sur)