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."