Workers strike over fraud claims

TANGERANG (JP): About 1,000 workers of shoe manufacturing company PT Mitra Kumkang Shoes went on strike here on Monday, claiming that the management has for eight years been embezzling the Jamsostek social security funds meant for workers.

The work stoppage resulted in the management forcing the workers to leave the factory on Jl. Gajah Tunggal, in Pasir Jaya subdistrict here, in the middle of heavy rain.

Soldiers and police took the initiative to allow the protesting workers to reenter the building and shelter in the canteen to wait for the results of talks between 20 worker representatives and management executives.

The protest follow the management's failure to give a clear explanation of the use of the fund, which was composed of 2 percent deductions taken from workers' monthly wages since 1990.

"Based on information from the Jamsostek office in Tangerang, the company has never transferred the funds to the office," said a worker who asked not to be named.

However, Suripto Kadir, personnel manager of the company, denied that the management had mismanaged the social security funds for the workers.

He claimed the company deposited about Rp 7.8 million each month in the Jamsostek office in Tangerang. The funds were made up from the 2 percent deductions from the workers' wages plus 3 percent subsidies from the company, he said.

Suripto admitted, however, that deviations in the management of the funds could have occurred before he became personnel manager in 1997.

"Possibly yes, as the firm's personnel manager has been changed five times since 1990," he said. (41/hhr)