PTDI workers rally over pay cuts

PTDI workers rally over pay cuts

Yuli Tri Suwarni, The Jakarta Post, Bandung

Thousands of suspended workers of state-owned aircraft maker PT
Dirgantara Indonesia (PTDI) again staged a rally here on
Wednesday, demanding that their salaries be paid in full.

AM Bone, secretary-general of the Communication Forum for
PTDI Employees, said that the 3,900 suspended workers had only
received 10 percent of their salaries, or between Rp 30,000
(US$3.5) and Rp 200,000 this month.

"It's inhumane. This percentage is not enough to pay our
children's tuition fees. It's not even enough for a week's
meals," he told the crowd during the rally outside the company's
compound.

Bone said that the workers had slammed the management for
miscalculating the company's financial ability before suspending
them.

The management had earlier indicated that the workers would be
fully paid -- except for transport and meal allowances --
although they were suspended.

One of the protesting workers, Endi, said that when he checked
his bank account he realized that he had been paid just Rp
150,000.

"I was shocked. How can I cover our needs during Ramadhan and
the Idul Fitri celebrations?" Endi asked, bursting into tears.

But even the hundreds of workers who had rejoined the company,
after passing a selection test, reportedly received only 25
percent of their monthly salaries this year.

Legislator Alvin Lie from the National Mandate Party (PAN) was
seen among the protesters, lending his support.

Later, accompanied by the labor union's executives, he met
with the company's director for technology Muharyan and the
corporate secretary, Mochtar Syarief.

The company's management admitted that they could not afford
to pay the workers fully. They said that, as of this month, the
company had only Rp 2 billion left.

Muharyan said that the government's promise of a US$54 million
bridging loan, for the company's working capital and severance
payments, had not yet been realized.

"I promise to meet with the minister of finance soon to secure
the disbursement of the loan," Alvin said after the meeting.

Meanwhile, the workers union was forced to ask the West Java
logistics agency to provide them with 150 tons of rice, promising
that they would pay for it later.

Separately, PTDI director for general affairs Nuril Fuad said
that the company will pay the workers' basic salaries fully and
their Idul Fitri allowance, as soon as the government disbursed
the bridging loan.

He said that the management had first discussed the loan with
the government last March.

He called on the workers to be patient and to understand that
the company was experiencing difficulties too, as it had huge
debts to repay.

In July 2003, the company suspended 9,647 of its more than
12,000 employees. It later laid off 3,900 workers, including some
who had initially been suspended.

At least 5,057 of those suspended took part in a selection
test to be rehired by the company. President director of PTDI
Edwin Sudarmo has said 4,957 employees passed the test.

The company, which was largely subsidized by the government
under former president Soeharto, reached its heyday when it was
led by former minister of research and technology B.J. Habibie.
Billions of rupiah of reforestation funds were used to support
the company at that time.

Although Habibie was hand-picked by Soeharto to succeed him as
the country's third president in 1998, like any other company,
the aircraft maker was hit by the economic crisis that started in
mid-July 1997.