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)