Mon, 21 Mar 2005

Sampoerna workers wonder what the future will bring

Indra Harsaputra, The Jakarta Post, Surabaya

News that the world's largest cigarette producer Philip Morris International Inc. would acquire a 40 percent stake in publicly listed PT Hanjaya Mandala Sampoerna Tbk. did not reach many of the company's workers.

On Friday morning, activities ran as usual at the House of Sampoerna, a two-story modern museum that showcases everything that has made the Sampoerna family among the big players in the cigarette business in Asia, in Surabaya.

Those workers who were aware of the latest developments turned up for work just like any other workday, though perhaps wondering at little what the future had in store for them.

Those who missed the news were those who preferred to rest rather than read newspapers or watch television news after work.

A worker, Neni, admitted she only learned about the news from a The Jakarta Post reporter, who interviewed her on Friday.

"I never watch news on television or read the papers because I usually go straight to bed, tired after working a whole day," she confessed.

She had no objection to the plan, as long as no workers lost their jobs, and expressed her hope of better working conditions.

"We just agree because the decision was taken by the (company's) leaders. Even if we rejected it, it wouldn't matter anyway," she said.

In contrast to Neni, Haryono, another worker at the House of Sampoerna, closely followed the developments -- that paves the way for Philip Morris to initiate the biggest acquisition deal in the country's corporate history -- both through electronic and printed media.

"I'm worried that a new policy may cut the number of workers. I'm a contract worker, if I lose my job, what would I do?" the security worker said. "I hope I can be promoted this year, and not be a contract worker anymore."

Despite the development, Haryono said it would not be easy for him to forget the role of Sampoerna's family in making the company the country's second largest cigarette's maker.

"I'm proud to work in this company, being a part of it," he said.

He said he felt relieved after a statement from Philip Morris saying that no workers would be fired. The commitment was announced by Philip Morris and Sampoerna management at a meeting with East Java Governor Imam Utomo on Thursday.

The meeting was attended by Philip Morris Asia Pacific president Matteo Pallegrini and vice president of corporate affairs Andrew White, as well as Sampoerna's director Angky Camaro and head of public relations Yudy Rizard Hakim.

At the meeting, Philip Morris also promised to retain unfiltered, hand-rolled kretek (clove) cigarettes -- the type favored by nine out of 10 of the country's 141 million smokers -- and to take them into the international market.

The two companies also reassured the community and workers, expressing their commitment to develop the province's economy.

Governor Imam Utomo told reporters he was happy that Philip Morris, the international tobacco unit of U.S. consumer-goods giant Altria Group Inc., would invest in the province and bring kretek to the world.