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.