Shangri-La management to take legal steps over strike

Shangri-La management to take legal steps over strike

JAKARTA (JP): The management of the five-star Shangri-La Hotel
said here on Saturday that legal steps would be taken to settle
the all out workers strike and the 'illegal' occupation of the
hotel from Dec. 22 to Dec. 25.

Peter J. Carmichael, Shangri-La Indonesia-Fiji General
Manager, told reporters that management had tried to accommodate
workers demands in line with existing (manpower) laws.

Lawyer Mulyadi of Maqdir & Mulyadi Law Firm, who accompanied
Peter, said management had asked police to investigate what was
really behind the strike.

"The striking employees have violated the laws by occupying
the hotel and taking four expatriate managers as hostages. These
are our main reasons for requesting the police to handle the
case," Mulyadi said.

According to Carmichael, the occupation of the hotel by some
employees occurred while negotiations between management and the
Shangri-La Independent Worker Union (SPSM) were underway.

"This is certainly illegal and has legal consequences," he
said.

Some 500 staff, mostly on-duty employees from the Food &
Beverage, Room Service, Security and Engineering units, started
the strike following a prolonged dispute over several matters,
particularly their service charges, pension fund, and the
suspension of workers.

Several guests had to be evacuated to other hotels and the
hotel has had to halt operations since Dec. 22.

Carmichael said that service charges had been equally
distributed following negotiations between management and SPSM,
which was recognized by the Ministry of Manpower on Oct. 19 this
year.

He said SPSM had reconfirmed the collective labor agreement of
Oct. 20 in which the transportation allowance was increased from
Rp 60,000 to Rp 100,000. "The amount will be Rp 130,000 starting
January 2001," he added.

But SPSM arbitrarily canceled the agreement and turned down
management's invitation for further discussions on the workers'
demands.

"The hotel management will no longer negotiate with the union
until a legal settlement is reached," he stressed.

The 32-story Shangri-La Hotel which has 668 rooms and suites
is located on Jl. Karet Pasar Baru Timur, Central Jakarta.

"Since Dec. 22, the hotel has suffered billions of rupiah in
losses."

He said the losses ranged from daily revenue, customer's
claims over canceled bookings, and damages during the strike,
adding that the losses would continue until the hotel resumed
operation.

Management estimated losses of Rp 10 billion from daily income
as of Dec. 31.

"But, the biggest loss is the nonmaterial damage... the
hotel's good reputation," said Carmichael.

When asked how long a legal settlement would take and when the
hotel would resume operation, Carmichael said the Management had
handed over the matter to the authorities. "Hopefully the hotel
will resume operation soon. (01)