Insurance employees seeking justice over unpaid salaries

Insurance employees seeking justice over unpaid salaries

JAKARTA (JP): All 60 employees at the head office of privately
owned PT Buana Putra life insurance company, lodged complaints at
the Jakarta Legal Aid Institute on Wednesday, saying that their
salary had not been paid since last August.

Workers' spokesman Helfiandri said their salary -- averaging
Rp 1 million each -- had been suspended by their boss, who argued
that the company was suffering financial difficulties due to the
economic crisis.

"The firm's owner kept on promising us payment, but his words
have come to nothing," Helfiandri said.

The company, which has at least 13 branch offices outside
Jakarta, runs its business at headquarters by giving
"transportation costs and meal allowances only" to employees, he
said.

According to the workers, branch office colleagues had so far
not faced such severe cost cutting measures.

Buana Putra's owner, Subagyo Sutjitro, who also came to the
institute, told his employees that he has considered selling the
firm's assets, worth Rp 40 billion in order to be able to settle
the workers' salaries.

"As soon as we sell the assets, we'll pay you all," Subagyo
said, asking his employees to be patient.

Representing the workers, lawyer Rhino Subagyo from the
institute, warned Subagyo that should he fail to promptly pay the
employees' wages the workers would bring the case to court.

"We will sue you and ask the court to seize the firm's assets
and Subagyo's private assets as well.

He has a responsibility to his staff," Rhino said.

Some of the workers have been employed at the firm's head
office on Jl. Suprapto in Central Jakarta for 15 years.

The company still has 24,000 customers in the city, Rhino
said.

"The firm still has savings but they are used mainly to pay
insurance claims to customers," Rhino added.

The lawyer, however, questioned Subagyo's refusal to pay the
workers' salary, when staff from the 13 branch offices continued
to be remunerated.

"It seems inconceivable that the owner does not have enough
money to pay all its employees," he said.

Spokesman Helfiandri reminded the company that workers would
demand severance payments from their employer, as stipulated in
the existing manpower regulation, if Subagyo decided to dismiss
them due to continuing poor company performance. (jun)