Istana Nelayan employees, management reach agreement

TANGERANG (JP): The strike called by 1,200 employees of the Istana Nelayan hotel and restaurant, which has remained closed after being badly damaged during last month's riots, ended peacefully after negotiations at the local manpower ministry office yesterday.

The workers demanded their employer immediately terminate their contracts and provide the appropriate severance pay and final month's wages.

They said they had been asked to stay at home indefinitely after the hotel was badly damaged on May 13 and since then had received no further information from their employer.

Located on Jl. Gatot Subroto in Jatiuwung, the Istana Nelayan, which also had a karaoke bar, live music and steambath service, had long been thought to be a cover for prostitution.

With the help of Suaman, an official from the local manpower ministry, and Samiri Sanja from the local branch of the All- Indonesia Workers Union (SPSI), company executive Hangki Sucipto and 10 representatives of the protesters reached a compromise agreement on the dispute.

Under the deal struck today but backdated to June 1, 425 workers agreed to resign.

"Each worker will receive appropriate severance pay and a letter of reference from Istana Nelayan," Hangki said, without stating when these payments would be made.

Those who worked for more than five years with the company would receive additional compensation equal to two month's salary, he added.

Hangki promised to pay all the workers' May salaries, worth an average of Rp 100,000 per person, on June 19.

The agreement apparently left all parties satisfied, particularly the workers, who then left the ministry office peacefully.

On the other side of town, 800 employees of PT Metropolitan textile company went on strike for the third time in recent weeks yesterday.

They insisted that the factory's owners increase their monthly salaries, which are currently Rp 160,000 (US$16) per person, and provide them with a transportation allowance.

According to the protesters, the firm has fired 260 of its 1,050 employees because of the economic crisis, but has steadfastly refused to grant the remaining workers any form of wage increase.

None of the company's executives could be reached for comment yesterday. (41/bsr)