Sat, 26 Apr 1997

HASI shoe company clarifies

Your story Shoe factory workers stage demonstration on page 3 of the April 23, 1997 issue discloses false information.

I am President Director of PT Hardaya Aneka Shoes Industry (HASI) located in Tangerang. HASI is an exclusive manufacturer of Nike athletic footwear and has been so since 1989. Our company provides jobs for more than 10,000 workers.

In March 1997 our company decided to ensure that none of our workers would be paid less than the government mandated minimum wage of Rp 172,500 per month in cash, not including overtime.

Based on a two-hour overtime workday (an average workday at HASI) there is a monthly difference of Rp 87,247 more than what was written in the article. This is a big difference (50.57 percent).

Besides overtime pay, we also provide a transportation allowance as another cash benefit and provide other noncash benefits, such as meals (lunch, extra meal, overtime meal), insurance (Jamsostek) and employees' personal income tax borne by the company. All of these facts are open for your inspection.

The demonstration on April 23, 1997, was related to our attendance bonus policy. By implementing a new full-time wage as the minimum basic wage, HASI management and the labor union, PUK SPSI HASI, agreed that the bonus policy (Rp 4,000 per week or Rp 16,000 per month) becomes irrelevant.

The employees who helped PUK SPSI HASI in representing workers' demands during the negotiation proposed to have this bonus policy become effective again. The company agreed with the proposal. HASI resumed activities on April 23.

We all agree that the public has the right to know the truth.

SITI HARTATI MURDAYA

President Director of PT HASI

Jakarta