Tyfountex upset by govt's unfair handling of dispute

Tyfountex upset by govt's unfair handling of dispute

JAKARTA (JP): Indonesian-Hong Kong textile joint venture PT
Tyfountex Indonesia, based in Surakarta, Central Java, complained
on Wednesday of what it considered the unfair handling of its
labor dispute by the the arbitration board at the manpower
ministry.

Tyfountex director Suwatna Djajasaputra said his company had
met all the demands of the striking workers but operations
continued to be disturbed by demonstrating laborers.

"The management and the workers' trade union leaders have
agreed to increase monthly wages to an average of Rp 146,300
(US$13.30) a month, compared to the mandated minimum pay of Rp
130,000, as of August," Suwatna said.

He produced a copy of the agreement which also stipulated that
the monthly wage would be raised further to Rp 160,300 from
October.

"Moreover, only around 1,500 out the 8.000 workers employed in
our plant still reject the agreement," Suwatna said, suspecting
that the workers might have been manipulated by outsiders.

Tyfountex, an integrated textile company which started
operating in Surakarta in 1974, exports most of its fabric and
garments. Its annual export revenue is around US$60 million.

The protracted labor dispute, which culminated in a massive
demonstration by around 700 workers at the manpower ministry here
for five days last week, puzzled not only trade union leaders but
the manpower minister himself.

"I have no idea what more they want because Tyfountex has
proven to me that it has fulfilled all the workers' demands,"
Minister of Manpower Fahmi Idris told reporters after meeting
with the demonstrating workers last Thursday.

Tyfountex's lawyer, Sophar Maru Hutagalung, said the labor
dispute started in June when more than 1,000 workers went on
strike to demand higher pay.

"But the August agreement should have solved that problem
because the majority of them have returned to work," Sophar said.

Tyfountex, he added, had not fired the striking workers even
though they had abandoned their posts for more than five days
without prior approval which, based on labor regulations, could
have resulted in their dismissal.

"But obviously, Tyfountex cannot simply rehire the striking
workers without the proper procedure because of suspicions that
some of them have been manipulated by outsiders for ends not
related to the workers' welfare," he added.

The company, Sophar said, decided last month to apply for
approval to fire the striking workers after they refused to
register for reemployment during the allotted period. But the
Labor Disputes Arbitration Board at the manpower ministry
rejected the application as unacceptable.

The striking workers who grouped themselves under the Workers
Reform Committee have insisted that they be rehired without any
conditions.

"We have appealed to the manpower minister to veto the board's
decision because if this kind of labor law enforcement is
justified, more workers may be tempted to blackmail their
employers. Industrial plants will find it more difficult to
maintain discipline among their employees," Suwatna argued.

He added the 7,000 workers who accepted the August agreement
had criticized the Tyfountex management for spoiling the striking
workers.

"The loyal workers have even issued a statement expressing
their opposition to the rehiring of their undisciplined
colleagues," Sophar said, illustrating the dilemma faced by
Tyfountex regarding the reemployment of the recalcitrant workers.

Suwatna added that his company had hired almost 2,000 workers
out of more than 20,000 applicants to replace the rebellious ones
because "we have to continue production to meet delivery orders
from our customers, otherwise we may lose our market."

Sophar contended that Fahmi's decision on Tyfountex's appeal
could be a test case for the survival of other major textile
companies in Surakarta.

"If the minister decides in favor of the recalcitrant workers,
irrespective of what has been done by Tyfountex to meet their
demands, other textile companies may be highly vulnerable to
unreasonable demands from their employees," Sophar added. (vin)