Labor unions reject privatization

Labor unions reject privatization

JAKARTA: The Federation of State Enterprises' Labor Unions
(FSP-BUMN) threatened on Tuesday to file a class action against
State Minister of State Enterprises Laksamana Sukardi should he
proceed with the ongoing privatization of state enterprises.

A federation senior executive, Bahrun Syah, said that under
the privatization scheme, all state enterprises would be sold
below market price, thus generating losses to the state.

The workers also fear mass lay-offs resulting from the
privatization, he added.

"We reject privatization. If Laksamana dares to continue with
it, we'll file a class action against him," Bahrun told a news
conference on the sidelines of a seminar on the subject.

Bahrun said the federation demanded that Laksamana's offices
be dissolved as they were no longer functioning for the people.

Earlier this year, the federation held rallies to reject the
privatization plan, but the government went ahead with selling
off the companies in the program. State telecommunications
companies PT Indosat and PT Telkom were among those privatized
this year.--JP