Sat, 10 Jul 1999

PPD management agrees to 120-percent salary hike

JAKARTA (JP): The board of directors at the state-owned Perum PPD bus company has agreed to meet workers' demands for a 120- percent wage hike, which will be implemented in stages over a six-month period starting with July salaries.

The decision was stated in a letter signed by five top PPD executives on Tuesday, the day the thousands of workers ended their two-day strike.

In the letter, shown to The Jakarta Post on Friday by PPD employees at the company's East Jakarta headquarters, the five directors -- president Anton Sudarto, finance director A. Muchlasin Rosjid, operations director Sjamsul Bachri, technical director Jaman S. Ginting and general affairs director Sudarti Ibrahim -- pledged to resign from their posts if they failed to keep their promises.

According to the PPD bosses, the workers would enjoy the first 30 percent pay rise in their July salaries, which they would receive on Aug. 1.

"Three months later, the raise would reach 90 percent from their current salary. Another three months later, the total amount of their salary would be 120 percent higher than the current one," explained Tony Royani, a personnel affairs employee at the company.

Thousands of drivers, conductors and administration staff at the company held a massive strike on Monday and Tuesday at the Ministry of Communications, demanding a raise in their wages, which have not been increased over the past seven years.

Their unexpected move stranded thousands of passengers throughout the capital and in other areas in the nearby cities of Tangerang and Bekasi.

The PPD workers only abandoned the strike on Tuesday afternoon after Minister of Communications Giri Suseno Hadihardjono told the protesters outside his office that he and his staff would work to meet their demands.

During the meeting with the group of about 400 workers, Giri acknowledged the company had suffered losses, particularly during the economic hardship.

According to Tony, the PPD executives have no choice but to keep their promise.

"If there is no raise in their wages on Aug. 1, the workers will make a move again," he warned.

Optimism

But Tony was optimistic that the PPD board of directors could meet their promise this time since they had given their assurance "to resign if the wage hike could not be implemented".

"The board of directors also has a moral obligation to meet the workers' demands because they promised to raise their salary," he said.

According to Tony, the average monthly salary of the drivers was between Rp 88,000 and Rp 150,000.

"Like the other staff, the drivers' salary is based on a 1992 government decree, but the difference is that the staff at the other department have enjoyed wage rises since 1997 along with the other civil servants across the country. But not the drivers," he said.

He quoted the PPD executives as saying at that time that the company conditions "made it impossible for the board of directors to increase the drivers' salary".

Some of the bus drivers who went on strike early this week told the Post that they would stop driving again if PPD broke its promise.

"We'll hold a massive strike again if we find no hike in our salary early next month," said Edison Tampubolon, a driver based at the Cililitan bus pool.

Edison said he was paid Rp 134,00 per month by PPD.

A fellow driver, Arsono, said he hoped the government could this time keep its word for the sake of the welfare of the workers and their families.

A 120 percent hike in their salary would help the bus crews, their wives and children cope with the escalating cost of goods and services.(asa)