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There has been a large labor problem taking place in Indonesia, specifically on the Batam island which is known for its free trade zone. Batam authorities have been unable to locate four foreign investors who locked up their businesses in the industrial estate and left the island; leaving 2,000 workers in uncertainty. The employees of the businesses filed complaints with the manpower and transmigration ministry office and the municipal legislative council. They have also asked for help to mediate this problem but have yet to receive any positive response. In the past, employees have staged massive rallies on these industrial estates to demand severance and service payments but they have to-date not met with management. It is thought the companies locked out because of decreasing foreign orders, the hike in the monthly minimum wage and the high-cost economy.
This is not the first time that an action like this has taken place on Batam. In 2002 two other companies did the same thing and left 480 people locked out. At that time, the companies were able to escape obligations to pay severance payments and suspended monthly wages to their workers. Chief of the local manpower and transmigration office Rudy Syakirti said he would bring the lock-out cases to court to settle the labor problems.
Actions such as these are very disturbing. This is a clear example of cheap labor being completely taken advantage of. These employees get paid very little yet with the head of the company’s business feels like the industry isn’t doing too well he has the right to lock it up with no penalty. I’m sure they feel this way because in the past when this has taken place they haven’t had to pay severance payments or suspended monthly wages. One can only hope that Rudy Syakirti can help out the labor dispute and the workers can be fairly compensated.
http://www.thejakartapost.com/detailnation.asp?fileid=20080125.G01
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