Tue, 12 Nov 2002

Thousands of workers demand outstanding severance pay

Multa Fidrus, The Jakarta Post, Tangerang

Thousands of workers launched demonstrations in Tangerang on Monday to demand outstanding severance pay.

The workers, representing four companies, staged separate rallies.

"We can not wait until the company sells all its assets because we need money for Idul Fitri preparations," Joko, a former PT Doson Indonesia employee, told The Jakarta Post during the rally on Jl. Raya Legok, Legok district.

PT Doson, an Indonesian company contracted to make Nike shoes, ceased operations on Sept. 24, leaving 6,890 workers without jobs.

Joko said only 500 workers had received severance pay, with the remainder told my management that they must wait until the company's assets were sold.

Around 700 workers previously employed by PT Koinus Jaya, a garment manufacturer, protested at the factory compound on Jl. Imam Bonjol, Karawaci district.

"We have been waiting for our severance pay since the company was closed in August due to declining orders, but as of today we don't know where we stand," Koisiyah, one of the workers, said.

She said the Korean company that employed mostly female workers had continually postponed payments promised for early September.

"We can no longer be patient because some of us have been forced to sell clothes or any valuables to survive," she added.

Meanwhile, 500 former workers from garment producer PT Cathay Murni protested outside the municipal manpower office.

The workers, who arrived at the agency office in several company buses, demanded agency officials help them recover their severance pay.

Lina, a worker with the Korean company for 10 years, said she was only offered severance equal to half her monthly salary.

Workers were paid the regional minimum wage of about Rp 590,000 per month (US$15 per week).

None of the laid-off workers were willing to accept the severance pay offers, demanding the company pay them in accordance with existing labor laws.

The regulations state severance pay depends on the working period. Generally, a worker made redundant is paid a months' salary for each year worked, up to a maximum of six years.

Lina said the staff were laid off on Oct. 25 without any prior warning, with management claiming the company was ceasing operations due to the absense of orders.

However, Lina alleged company management were using an old trick to rid itself of senior workers earning the maximum wage, and to avoid paying Idul Fitri and Christmas bonuses.

About 200 workers, all women, from shoe-part manufacturer PT Komas Rama Jaya Indonesia, also demanded severance during a rally at the regency manpower agency office in Cikokol.

Former employee Sugih, 20, said the Korean company was closed on Oct. 5 with management only offering severance pay equal to one month's pay.

The company said it was forced to close due to the lack of orders.