Shangri-La labor dispute officially over

JAKARTA: After over two years of protracted litigation, the management of Shangri-la Hotel and dozens of its former workers agreed to end their dispute by signing a landmark joint agreement.

In a press release made available to The Jakarta Post on Wednesday, the Independent Labor Union Federation (FSPM) said that PT Swadharma Kerry Satya, the hotel's owner, and the Shangri-la Hotel independent labor union (SPMS) had agreed to end the industrial dispute between them backdated to March 12.

The agreement was reached after both parties engaged in a series of bipartite negotiations. The Minister of Manpower and Transmigration, Jacob Nuwawea, was present to witness the signing of the agreement on March 7.

It was signed following a Supreme Court ruling in favor of the hotel.

About 75 workers had earlier consistently rejected the compensation package offered by the hotel management and demanded that they be rehired.

The hotel has now agreed to pay the workers more than ordered by the Supreme Court while the workers have agreed not to prolong the conflict.

The dispute, which had drawn the attention of the International Labor Organization (ILO), broke out after the hotel fired more than 500 members of the FSPM following a strike demanding better conditions. --JP