Fri, 13 Sep 1996

Steel workers go on strike

SERANG, West Java: Production at the cold rolling mill unit of state-owned PT Krakatau Steel has been partially crippled for three days because of a work stoppage by around 100 crane operators, Antara said yesterday.

The striking workers marched to the local office of the Ministry of Manpower demanding that management hire them as full- time employees rather than as contractors.

The unit employs around 200 workers but work virtually stopped in the absence of crane operators, the news agency said.

The striking workers told Antara that their status had changed with changes in the management of the company.

Originally known as PT Cold Rolling Mill Indonesia Utama, the company was saved from total closure in 1993 when Krakatau Steel bought it and incorporated it as part of the giant steel company.

Subsequent to the merger, the crane operators were retained but on an annual contract basis.

The management subsequently agreed to hire them full time but set tough conditions that they could not meet, the workers said.

Krakatau Steel management was not available for comment, Antara said. (emb)