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)