State train workers scrap strike plan

State train workers scrap strike plan

Muninggar Sri Saraswati and Ridwan Sijabat, The Jakarta Post/Jakarta

Hundreds of thousands of regular train passengers in Java and
Sumatra can take relief in learning that employees of state
railway company PT Kereta Api Indonesia (KAI) canceled on Friday
their plan to strike next week.

The announcement followed a deal struck between the company's
labor union and the government, which will provide salaries,
pension funds and medical allowances for 30,000 PT KAI employees
and pensioners on a par with civil servants.

The government had prepared buses and trucks to anticipate the
train strike, which was set for Aug. 8 through Aug. 10.

Reading the agreement, State Minister of State Enterprises
Sugiharto said he had ordered the company's management to honor
the rights of employees and pensioners.

"PT KAI employees deserve pay, pension funds and health
allowances equaling those received by civil servants," Sugiharto
told a press conference at the presidential office.

The deal was reached during a meeting at the vice presidential
office earlier in the day and was presented to President Susilo
Bambang Yudhoyono.

Sugiharto, Minister of Transportation Hatta Radjasa and
company president Omar Berto represented the government during
negotiations, while the PT KAI labor union was represented by its
chairman, Amien Abdurrahman, and secretary-general Susi Munawati.

The government will also reshuffle the company's management,
but Sugiharto asserted that the move had nothing to do with the
planned strike. The employees had demanded Omar be dismissed for
his disappointing performance and alleged corruption.

"The term of the current management of PT KAI was supposed to
end last October. There is nothing new in this matter," Sugiharto
said.

Sugiharto said, however, that the government had turned down a
demand to reinstate the status of the firm's employees as civil
servants.

The transportation minister issued a decree in March 1992 that
changed the company into a limited liability firm and
subsequently the status of its employees. The company's employees
and retirees have been receiving lower pay and pension funds due
to its poor performance.

The dispute caused concern within the International
Transportation Federation, whose secretary-general, David
Cockroft, wrote to President Susilo early this week to ask that
the latter address the issue accordingly.

The employees are also demanding a judicial review of the
decree. Sugiharto said the government would not intervene in the
court battle.

PT KAI labor union head Amien said the union was slated to
sign an agreement on insurance for the company's employees and
pensioners with state insurance company PT Jamsostek later this
month.

Amien, who hugged Omar after the press conference, said the
company employees would not go on strike.

"The railway labor union asks all PT KAI employees to work as
usual. We herewith announce that the planned strike has been
canceled," he said.

State electricity company PT PLN has warned of blackouts
across Java and Bali as a result of the strike because the supply
of coal and petroleum to several power plants on the dense
islands is dependent on PT KAI.

Transportation minister Hatta Radjasa said before the meeting
that the government would introduce measures to improve PT KAI's
income so that it would be able to improve its employees'
welfare.

"First of all, PT KAI should be able to improve its revenue by
charging all train passengers, because as it is 40 percent of
passengers in Jakarta and the outskirts do not buy tickets.
Second, the government will severely punish corrupt officials and
employees. And third, the firm has to improve its performance,
particularly security on trains, as part of its program to
provide better service.

"Of the utmost importance is that PT KAI should be efficient
to improve its competitiveness amid the growing airline
industry."