Striking Shangri-La workers resign

JAKARTA (JP): The management of Shangri-La Hotel announced on Wednesday that 303 of its striking employees had resigned to pave the way for an end to a long-running labor dispute.

The resigning workers include executives of the labor union that prompted a strike over improvement in welfare in December last year.

Shangri-La senior manager Wastu Widanto said the resignations indicated that the two parties were making progress in solving the dispute. He added that the resigning employees admitted that they hadn't wanted to join the strike in the first place.

"They told us that they were happy to put the matter behind them and that the campaign, raised by a few union leaders, against the management was wrong," he told reporters.

"The company is expecting more of the striking employees to tender their resignation in the coming days. It's better for them than awaiting dismissal."

The row is being tackled by the government-sanctioned Central Committee for the Settlement of Labor Disputes.

Wastu claimed that the mass resignation, involving more than 60 percent of 579 striking employees, started in February and is being handled by a special committee.

He added that some of the employees had talked with the hotel's owner, PT Swadharma Kerry Satya, on an individual basis in seeking a solution.

Contrary to the management statement, chairman of the hotel's independent labor union, Halilintar Nurdin, said that the resigning employees were lured to quit and offered separation pay worth twice their monthly salary, depending upon the length of their working period, plus Rp 1 million bonus each.

He said three of the union's executives were assigned by the management to encourage other employees to resign.

"The three, Budi Susanto, Wawan Rusmana and Deny Setiadi, were promised "commission" for each worker they can tempt to quit. I've just dismissed them (from the union)," Nurdin told The Jakarta Post.

He said there are only around 250 employees who have resigned.

"The management is lying about the numbers," he added.

Nurdin said a dismissed employee will receive separation pay amounting to the same as a resigning worker.

"None of us will follow the call for resignation. This is just an attempt to keep us from the hotel since it will accommodate participants of the G-15 summit in May," he added.

Leaders of 15 developing nations are scheduled to meet here to enhance cooperation next month.

The labor dispute centers on the employees' demand for a salary hike and equal sharing of the hotel's service charges and pension fund.

Workers occupied the hotel on Dec. 22, forcing the management to halt the hotel's operations.

The hotel reopened on March 17, with the hope to make amends for US$ 8.59 million in financial losses that resulted from the closure.

Instead of meeting workers' demands, the management dismissed 420 members and executives of the union.

The hotel management has offered compensation of between one- and-a-half months and three months of basic salary to those dismissed.

The workers claimed basic monthly wages were only Rp 280,000, far below the Rp 384,000 official minimum wage (UMR). They said they earned more take home pay, because it included service charges.

The hotel management said that besides basic salary in line with the UMR, a worker received a Rp 100,000 monthly transportation allowance. (bby)