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Minister backs suspension of DI workers

| Source: JP

Minister backs suspension of DI workers

Evi Mariani and Yuli Tri Suwarni, The Jakarta Post, Jakarta/Bandung

State Minister for State Enterprises Laksamana Sukardi threw his
weight behind the management of PT Dirgantara Indonesia (PT DI)
over the weekend in their suspension of over 9,600 employees,
arguing the company was incurring huge losses.

"The government supports the action the management (of PT DI)
has taken," Laksamana said on the sidelines of Bank Mandiri's
listing ceremony at the Jakarta Stock Exchange on Monday.

The management of PT DI decided last Friday evening to suspend
the operations of the aircraft company and asked its 9,670
workers to stay home for up to six months.

The decision angered the workers as the company halted
operations without consulting them.

Minister Laksamana said the suspension was temporary and in
the employees best interests.

"What the management (of PT DI) has done is temporary in order
to cut losses," Laksamana said without elaborating.

Announcing the company's decision to suspend its operations,
PT DI president director Edwin Soedarmono said the firm had
serious financial problems since it had to spend Rp 35 billion
each month for salaries, transportation, and meal allowances for
its workers as well as for water, electricity, and telephone
charges. The suspension is expected to cut expenses by 20
percent.

Laksamana ruled out the possibility of the government
subsidizing the aircraft company.

"I don't think PT DI as a strategic industry that serves
people's needs like Pelni (state-owned sea transportation
company). So I don't think it deserves a government subsidy.
Moreover, our budget is tight," he said.

"But if we all (the management and the government) agree to
subsidize PT DI, we will propose the plan to the budget committee
(of the House of Representatives)," he added.

The House has decided to summon the management of PT DI and
related departments later this week to explain the suspension.

Meanwhile, thousands of PT DI employees staged a rally in
front of the West Java Legislative Council, demanding Edwin
Soedarmo's immediate resignation as president director.

"We want Edwin to quit as he has illegally suspended the
employees and create more problems for the company," said the
chairman of PT DI Worker Union (FKK) Arif Minardi.

Local legislator Yudi Widiana Adia, meanwhile, expressed
worries over the decision to suspend the workers, saying the move
might pose a security threat in the province.

However, he said the employees were in a weak position in this
case as they did not have any work agreement with the employer.

Separately, three of the company's directors who were not
involved on the decision to suspend the employees, issued an
official letter asking Edwin to revoke his decision.

General affairs director Budi Setiawan Taufik, director of
technology Sudarma and human resources director Pudjo Sulaksono
said Edwin's decision was not endorsed by the board of directors
and violated the company's statutes.

They also said that they would not take any responsibility for
any negative impacts of the decision.

Most employees also agreed that founder and former president
director B.J. Habibie return to the company as its president
director.

Habibie, who also served as the country's third president, had
reportedly asked for a 5 percent share with veto rights should he
return and manage the company.

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