Indonesian Political, Business & Finance News

Shangri-La to accept verdict on labor row

| Source: JP

Shangri-La to accept verdict on labor row

JAKARTA (JP): Shangri-La Hotel will accept any judgment handed
out by the Central Committee for Settlement of Labor Disputes
(P4P) over the labor dispute in the hotel.

"We are sure the P4P will give a professional and fair
verdict," the hotel's director of marketing Sherryin Bates told
The Jakarta Post here on Tuesday.

The hotel had dismissed over 410 employees following a strike
in which striking employees later commandeered the hotel in
December. In response the hotel's management decided to close the
hotel for nearly three months.

"We don't want special treatment from the government but
authorities should stick to the labor law in trying the case,"
she said, adding the management was awaiting a permanent solution
to the case to ensure legal certainty and a conducive business
climate in the country.

Bates regretted the illegal takeover of the hotel that led to
the hotel's three-month closure and caused around US$2.6 million
in losses.

She further stressed that the management fully supports
harmonious industrial relations with the workers.

"Workers have their right to freely express their opinion and
fight for an improvement of their social welfare but that must be
done in accordance with the law and democratically," Bates
contended.

She pointed out that management had increased the
transportation allowance from Rp 60,000 to Rp 100,000 in October
2000 and raised it further to Rp 130,000 in January 2001, "but it
was unacceptable when workers demanded a 100 percent hike in the
distribution of service charges."

She said both the management and workers should learn from the
case which profited no one.

"The management had to recruit around 500 new staff to replace
the dismissed personnel and spend more money to train them while
those dismissed, most of whom are already married, lost their
jobs," she said, while revealing that the management had received
applications from more than 4,000 job-seekers following the
massive dismissal.

H. Willem Tehubijuluw, director of Shangri-La, said that
following the three-month closure, the five-star hotel has
resumed its services to its domestic and foreign guests with the
hope that its occupancy rate would gradually rise in the near
future.

"We are preparing for a complete reopening with the recent
resumption of the hotel's four restaurants and bar," he said.

Tehubijuluw said that the hotel, which reopened in mid-March,
was taking all measures to ensure customer comfort and
convenience.

He pointed out that the hotel enjoyed an 18 percent occupancy
rate over the last week.

"Our priority is to provide the best service for guests and
our strength lies in this," he said. (rms)

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