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)