HongkongBank to sue govt arbitrator

HongkongBank to sue govt arbitrator

JAKARTA (JP): HongkongBank plans to take the Ministry of
Manpower's arbitration body to the Jakarta High Administrative
Court for having ruled in favor of the bank's striking employees.

"We are in the process of suing the arbitrary body," said the
bank's lawyer, R.E.M. Pattikawaat, at the ministry's South
Jakarta office. He was accompanied by the bank's personnel
manager, F.X. Joko Sudibyo, and bank executive Endy P.R.
Abdurrahman.

Bank executives and employees were all summoned yesterday for
questioning at the office, after the management failed to comply
with arbitration body's ruling by the deadline last Monday. The
South Jakarta office oversees the decisions made by the body.

The dispute erupted in mid-January when the bank's employees
went on strike to protest a collective labor agreement. The
employees, about 250, went on strike again on April 27 when the
case was handed over to the Ministry of Manpower.

The April strike provoked the bank to suspend 11 workers who
were high up in the bank's labor union. The management issued a
formal warning to 240 striking workers, urging them to go back to
work. The warning was ignored. The management -- in another
letter dated April 29, 1996 -- then asked the striking employees
to resign.

On July 22 the arbitrary body officially overruled the bank's
decision to dismiss around 200 employees. It ordered the bank to
recall 166 employees through written notices and pay them back
salaries from May 1996, when the bank officially terminated their
employment.

The disputed parties were questioned at the same time but in
separate rooms.

M. Rodly Madjid said his office, of which he is charge, may
sue the bank for not implementing the body's decision.

"The employees can also sue the bank's management for not
paying them as stipulated," he said.

The head of the bank's union, Ugianto, said the bank's
decision to sue the arbitration body is improper.

"That means that the bank is confronting the body, the
minister and the president," Ugianto said yesterday.

Ministry of Manpower spokesman Hermanto added that the body
was set up by presidential decree.

"We have strong legal reasons to make the decision," Hermanto
said, acknowledging that the bank also has the right to sue the
arbitration body.

He recalled that a business once sued the ministry but lost in
court. (jun)