Sat, 15 Feb 2003

PT DI workers oppose massive labor dismissal

Yuli Tri Suwarni, The Jakarta Post, Bandung

Four thousand workers of Bandung-based aircraft manufacturer PT Dirgantara Indonesia (PT DI) went on strike on Friday to protest the company's reported plan to lay off 3,500 workers.

The workers, organized by the Communication Forum for PT DI Workers (FKK), laid down their tools for two hours and picketed outside the company's front office.

"We want the board of directors to explain the rumors of the mass dismissal of 3,000 workers," said FKK chairman Arif Minardi on Friday.

According to Arif, the workers also sought clarification about the government's plan to reshuffle the board of directors as mentioned by State Minister of State Enterprises Laksamana Sukardi.

Previous reports said the company would lay off 3,500 from the total of 9,600 workers to make the company more efficient. The plan will be discussed during the company's shareholders meeting later this month.

Kompas daily reported company spokesman Rakhendi Triyatna as saying that the measure was part of efforts to improve the company's performance, which had deteriorated since the onset of the economic crisis in 1997.

The rumors of layoffs had cause uncertainty among the workers, which could adversely affect the working environment in the company, Arif said.

Arif said the workers were not opposed to the dismissal plan, but it should be implemented transparently and the process should involve workers' representatives.

Arif also demanded that the amount of severance pay for the dismissed workers be jointly decided by representatives of management and workers and that all parties should commit to a joint decision.

If the management refuses to fulfill the demand, including clarifying the dismissal plan, a large demonstration will be staged, according to Arif.

During the demonstrations, the protesters also criticized the performance of the board of directors chaired by Edwin Sudarno, alleging that he was sluggish in the fight against corruption, collusion and nepotism.

Similar protests were organized in mid-2002 when the workers demanded that company president Jusman S. Djamal be replaced because he neglected the workers' welfare. In March last year, the workers went on strike.