Strike cuts Astra's output by 1,500 cars

Strike cuts Astra's output by 1,500 cars

JAKARTA (JP): Production at giant car assembler PT Astra
Toyota Motor (TAM) dropped by 1,500 vehicles in March due to a
two-week strike by workers at one of its suppliers, an executive
at TAM's parent company PT Astra International confirmed on
Thursday.

Astra corporate secretary Aminuddin said that because of the
strike, TAM's output in March reached only 5,000 vehicles from
its normal output of between 6,500 to 7,000 vehicles.

Aminuddin, however, dismissed media reports saying that TAM
had suspended assembly at its plants because workers at one of
its seat suppliers, PT Kadera-AR, were on strike.

"We've experienced only a minor interruption. I don't think
the 1,500 vehicles are a significant loss," he told The Jakarta
Post.

He added that TAM would resume normal production on Monday, as
the company had assigned other seat-makers to fill in for Kadera.

TAM, he said, could use six or seven seat-makers, which were
now increasing production to meet the seat shortfall caused by
Kadera's problems.

The drop of 1,500 vehicles were of various models, as Kadera
produced seats for different cars TAM assembled, he explained.

TAM operates two assembly plants, namely one in Sunter, North
Jakarta, and one in Karawang, West Java.

TAM opened its Sunter plant in 1974 with an annual production
capacity of 100,000 vehicles.

The newer Karawang plant opened last year at a Rp 500 billion
investment (about US$50 million) to produce passenger cars only.

It has a production capacity of 30,000 vehicles per year.

TAM, a joint venture between the widely diversified Astra
International and Japan's Toyota Motor Corporation, holds more
than 50 percent of the local car market.

Aminuddin declined to elaborate on the background of the
strike at Kadera, or of the prospect of it being resolved.

According to him, the strike was Kadera's internal problem on
which he could not comment.

Strikes have become a popular means for Indonesian laborers to
press their demands.

The downfall of former president Soeharto in 1998, gave rise
to an organized labor movement in Indonesia that has stung a wide
variety of businesses.

Strikes at oil and gas, mining, textile and shoe companies
have plagued foreign and local investors alike.

Earlier this year, several foreign investors in the footwear
industry were reported to have allocated orders to neighboring
countries due to Indonesia's unruly labor unions.(bkm)