Habibie sympathizes with IPTN staff

Habibie sympathizes with IPTN staff

JAKARTA (JP): President of the state-owned aircraft
manufacturing company PT IPTN, B.J. Habibie, sympathized
yesterday with employees' wage demands but said the company
lacked the financial resources to meet them.

While saying he understood the rising daily needs of his
employees, Habibie said it would be difficult to meet demands for
a 200 percent to 300 percent pay raise.

"Where is the money going to come from?" Habibie asked as
quoted by Antara from Bandung.

Habibie met with representatives of striking employees at
IPTN's factory in Bandung yesterday who presented a 14-point
statement of concern which includes calls for a 200 percent to
300 percent pay rise across the board.

Some 3,000 employees of the aircraft company went on strike
Wednesday demanding a general improvement of welfare.

Habibie, who is also State Minister of Research and
Technology, said the company was already forking out Rp 25
billion (US$6.9 million) for maintenance and wages each month.

He said Rp 15 billion went toward the salary of IPTN's 16,000
employees while the rest was for paying electricity bills and
other maintenance costs.

Habibie said he sympathized with his employees.

"I do realize that your households are in a tight spot. That's
why I have been following your actions since Wednesday and I
consider them acceptable," Habibie said. He urged employees to
continue their efforts for better welfare but asked them to raise
their concerns in an orderly manner.

In their statement the employees demanded, among others,
action against corrupt company officials and improvement of the
pension plan.

They further asserted that if the company cannot meet wage
demands than the employees should be discharged with a suitable
severance pay.

Habibie called for dialog with employees in which
representatives should be chosen to meet him personally. (mds)