Steel firm allows workers to form union after rally

Steel firm allows workers to form union after rally

JAKARTA (JP): Management of steel factory PT Gunung Garuda in
Bekasi finally relented yesterday and permitted its 2,000 workers
to set up a trade union after a protracted dispute which included
a bloody riot last month.

"The management has allowed its workers to found their own
trade union in line with the existing labor law," Chairuddin, one
of the company's executives, said in a tripartite meeting between
the workers, management and a representative of the Ministry of
Manpower here yesterday.

About 200 workers of the company staged a demonstration at the
ministry's compound yesterday, protesting the management's
refusal to comply with a collective labor agreement on labor
disputes signed by the two sides in June.

Under the agreement, workers are allowed to unionize, and
dismissed workers or those asked to resign receive severance pay
in accordance with the law and are protected under the social
security program run by state-owned PT Jamsostek.

Massive rioting erupted at the firm's compound on June 30,
with security officers firing rubber bullets which injured 23
workers. The incident occurred after almost all of the firm's
2,000 workers took part in a demonstration demanding the founding
of a union. Eight workers are still being treated at Bhakti
Husada Hospital in Cikarang.

Edward Marpaung, spokesman for the workers, said after
yesterday's meeting that the workers would join the independent
Indonesian Prosperous Labor Union (SBSI), not the government-
backed Federation of All Indonesian Workers Union (FSPSI).

"We were barred from unionizing because we want to join the
SBSI."

He said workers would officially establish the SBSI unit at
the company on Aug. 10.

Chairuddin said the management was committed to protecting its
workers under the social security program of PT Jamsostek and
would give them their membership cards as soon as possible.

"The workers have been insured in PT Jamsostek and their
membership has been in effect as long as they have been employed
in the company."

The tripartite meeting was presided over by Mardjono, chief of
the labor standards section at the ministry. (rms)