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)