HongkongBank yet to decide on whether to file lawsuit

JAKARTA (JP): The management of the HongkongBank denied reports yesterday that it plans to sue the arbitration body of the Ministry of Manpower.

The bank failed to gain the permission of the body to dismiss 166 employees. It initially requested permission to dismiss 189 employees, but some returned to work and others have resigned.

Leila Djafaar, the bank's public relations officer, told The Jakarta Post no decision has been made about filing a complaint with the Jakarta State Administrative Court over the body's ruling.

"We only mentioned the legal possibilities open to both the management and the union" if either party is unsatisfied with the ruling, she said.

The bank's chief executive officer, Philip Holberton, announced on Monday that the management is "very disappointed" with the body's ruling, issued on July 22.

The management was obligated to recall its employees through written notices and pay their salaries from May, when the bank terminated their employment.

Leila declined to say whether the management will reach a decision within 14 days, the deadline the body set for the management to honor the ruling.

The ruling can be annulled by the veto power of the minister of manpower.

She said the management "has to take into account several factors" including the feelings of several workers who said they were "intimidated" into joining the strike. Employees on strike earlier denied the charge.

The interests of the majority of over 300 employees will be among the management's consideration in making a decision, she said.

The case was taken to the arbitration body late in May following a strike by bank employees.

The strike, unionists said, was caused by the management's stalling of negotiations on the new collective labor agreement.

The management called the workers' demands irrational.

The case has attracted international attention.

Letters from the Geneva-based international trade union for the private service sector, FIET, were sent to the HongkongBank management in Jakarta and London. London is the base of the HongkongBank and Shanghai Bank headquarters.

A copy made available to the Post said the bank's reputation "as one of the world's leading banks" goes with a "social responsibility to conduct all facets of business in a manner which is open and fair, which respects local laws and practices, and recognizes the rights of employees and unions". (anr)