Workers strike over fraud claims

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)