Fri, 16 Jan 2004

PT DI, workers offered last chance to negotiate

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The Central Committee for Settlements of Labor Disputes (P4P) asked on Thursday that the management and 6,600 dismissed workers of ailing aircraft manufacturer PT Dirgantara Indonesia (PT DI) go back to the negotiating table for a solution.

"All 15 members of P4P agreed that the management and workers need to seek win-win solution in the next 12 days, otherwise P4P will make its own decision in the dispute on Jan. 27," P4P Chairman Sabar Sianturi announced after meeting the two sides.

Alexander Sinaga, a P4P member, added that PT DI president Edwin Soedarmo should listen to P4P's offer, otherwise the management could lose the case, and the workers -- with the help of third parties -- could politicize the whole issue.

He said the committee had the impression that the management's reasons for laying off the workers was weak.

During the five-hour hearing, Edwin supposedly did not express a convincing argument for the massive labor dismissal at the state-owned company.

"The dismissal was inevitable because the company has been losing money since 1991 and we could not pay debts to local and foreign creditors," Edwin replied, when asked why the company was suffering financial problems.

Arief Winardi, chairman of PT DI workers Trade Union (SP FKK PT DI), opposed the lay off and called it irrational, saying that the management could not blame the financial difficulties on the workers because the difficulties were caused by corruption, inefficiency and mismanagement.

"The corruption and inefficiency have cost the company between Rp 2 trillion and Rp 3 trillion since 1997. We have data and evidence on a number of incidences of corruption and inefficient methods since 1997. Everyone knows the company is a cash cow for the current regime and previous ones," he said.

Arief insisted that the company's main problem was not overstaffing but, mismanagement and unprofessionalism.

"Despite a difficult market for its main products, PT DI has also has other units that have made a profit.

Lawyer Johnson Pandjaitan who is working on the case, said he and the dismissed workers would wage an all-out battle to win.

"Thank God, we have received moral, political and financial support to fight this case. We are seeking more political support to pressure the government to heed our demands," he said.