Reputation of HongkongBank at stake: Union

JAKARTA (JP): The reputation of HongkongBank could decline if its dispute with employees is not solved soon, said the head of the Federation of All-Indonesian Workers Union.

Bomer Pasaribu said yesterday the federation received a copy of a letter from the London-based international union of commercial, clerical and professional employees.

"If this dispute goes on and on we pity not only the workers, but also the management," Bomer said. The bank's reputation could decline, he said, given the negative exposure the international banking community has received this year.

An urgent settlement is in the interest of both parties, he said.

He said the letter from the union, called FIET-International, urged that the labor dispute at the bank be resolved as soon as possible.

The HongkongBank management dismissed 189 employees in late April, on the grounds that they did not show up for work for five consecutive days without notice, based on a 1996 regulation on dismissal.

Union representatives at the bank denied this, saying the workers were on strike. Workers demanded that the management stop stalling talks on the new collective labor agreement with their union.

The arbitration committee at the Ministry of Manpower, which must decide whether an employer can dismiss 10 or more people at a time, has not delivered a decision.

Bomer said the federation has repeatedly called for a rapid settlement from both the bank's management and the arbitration committee.

As long as the committee does not reach a decision, employees are still entitled to their legally guaranteed rights, which is at least monthly payments of 50 percent of their salaries, he said.

"We maintain our position that there has been no dismissal at HongkongBank," before the committee decides otherwise, Bomer said.

Federation representatives, chaired by Ugianto, have also complained of the lengthy time the committee is taking.

Leila Djafaar, the bank's public relations manager, said yesterday that the payment of the 189 employees' salaries depends on the committee's decision.

However, "The committee has said it cannot issue a decision on salary payment" during its deliberations on the HongkongBank case, Leila said in a written reply. The management can only respect what the committee says, she said.

"As a foreign investor, HongkongBank complies to laws in the country in which it operates," Leila said. Any decision from the committee will therefore serve as the main guideline in doing business, she said.

In response to what the management felt caused the prolonged dispute, Leila said it seems the arbitration committee is being "very careful" as its decision could have long-term effects on foreign investment here. (anr)