Water firm workers in a lather over renegotiated agreement

Water firm workers in a lather over renegotiated agreement

JAKARTA (JP): About 100 employees of the city-owned tap water
company PAM Jaya held a rally at the City Council on Wednesday to
protest a renegotiated agreement between the city administration
and two foreign firms.

"We still demand the city administration and the City Council
cancel the water management deal with both foreign firms,"
chairman of PAM Jaya's workers union Amir Tanjung told councilors
on Wednesday.

"We do not care about the results of the renegotiation. The
water management agreement must be canceled."

The city administration decided to continue the water
management deal with Thames Pam Jaya (TPJ) and Pam Lyonnaise Jaya
(Palyja) after the renegotiation was completed earlier this
month. City councilors also provided their recommendations on the
matter.

Amir said the deal contravened Article 33 of the 1945
Constitution, which stipulates that the state is responsible for
the management of all vital industries.

The workers said they were not willing to work for either of
the foreign firms even though there were reportedly 1,300
positions available.

"They lied when they said that they would accept us as
employees," Amir said.

The original water management agreement was criticized because
PAM Jaya paid water charges which were higher than the water rate
to both firms.

The water rate was set at Rp 2,066 (27 U.S. cents) per cubic
meter of water. Previously, the water charge paid to Palyja and
TPJ was Rp 2,987 and Rp 2,490 per cubic meter of water
respectively.

The renegotiation decided the water charge should be lower
than the water rate. Palyja will receive Rp 1,825 and TPJ Rp
1,521.

The council's deputy speaker, Tarmidi Suhardjo, said the
renegotiated agreement was final and that both foreign firms made
concessions.

"Therefore, there is no reason for the city administration and
the City Council to cancel the agreement," he said.

Tarmidi, a councilor from the Indonesian Democratic Party of
Struggle (PDI Perjuangan), said the council would summon
executives from the foreign firms and city officials on Thursday
to obtain firsthand information.

Separately, Governor Sutiyoso vowed to order an investigation
into all PAM Jaya executives allegedly involved in Rp 800 billion
in graft. The huge losses led to the seeking of foreign
investment in the company.

"After the renegotiation, the city administration will soon
investigate the corruption cases," he said. (05)