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Indonesian Factory Closed When Workers Demand Raise!Pressure Kohl's to use its leverage with the Indonesian factory so that the workers are given back their jobs with an appropriate wage increase!Information for this alert comes from the Federasi
Serikat Buruh Karya Utama (FSBKU) union in Indonesia. On February 6th, 2004, the Indonesian factory PT Sarasa Nugraha Tbk., Balaraja Unit announced that it was closing down after workers demanded the annual wage increase provided for in their collective bargaining agreement! Now workers are being pressured to accept a fraction of the legal severance pay, but may have to accept because their families are running out of money. Write Kohl's chief executive Larry Montgomery to demand that Kohl's use its leverage with the Indonesian factory so that the workers are given back their jobs with an appropriate wage increase! BackgroundThe Federasi Serikat Buruh Karya Utama (FSBKU) union and the management of PT Sarasa were operating under a collective labor agreement (CLA), effective between October 26, 2002 and October 26, 2004. Under this agreement, a wage increase was to be negotiated at the beginning of every January. Therefore, in December 2003, the union members requested a meeting, hoping that they could reach an agreement and have the raise apply as of January 2004. However, the employers violated the agreement, postponing the negotiations three times. In response to these delays, the workers decided to organize a work stoppage during half of the day of February 3rd, 2004. The employers' reaction was to close the factory down temporarily and to schedule a meeting with the union for February 6th. During the nights of the 3rd and the 4th of February, civil paramilitary groups were called upon to secure the gradual movement of the company's assets to another branch of the factory. These were worrisome signs that were confirmed at the meeting held on the 6th, during which the employers' announced that they would close down the factory. As a result, workers have not received the promised wage increase and currently do not even have access to any type of cash income. Since these people have been working in deplorable conditions their whole lives, they never received salaries high enough that enabled them to prepare savings in case of emergencies such as these. Hence, about 1652 workers and their families are now suffering from hunger and are unable to satisfy their daily needs. Several representatives of the factory were sent to the homes of the workers, proposing that they accept the compensation that the company is offering for laying them off. The problem is that the amount that the company is offering is about 25% of the sum required by Indonesian law. If the workers accept, they would be breaching the agreement and would have to work out a contract individually with the firm, which is much riskier than if they dealt with the company as a unified group. Unfortunately, many of the workers might be obliged to accept this offer since they don’t have access to any other form of income. The Workers' Union (SPTP) organized a meeting which brought together the Labor Minister, the employers and representatives of the union so as to come to an agreement, but the company failed to attend. After threats of a boycott of Sarasa products, the company finally agreed to a mediation that took place on March 31st. During the meeting, they offered a lay off of workers at the Balaraja unit of Sarasa with only bonuses paid to the workers, as opposed to paying severance benefits appropriate to each worker. The company is threatening to continue the procedural conflict if the union does not take up this offer. The SPTP, on the other hand, wants the company to guarantee that the workers will go back to the positions they previously held, that it will continue to pay the workers during this disruption, and that the wages it offers will enable the workers and their families to have decent living conditions. Several companies in the United States have contracts with this company, including Jones Apparel Group, Perry Ellis International and Kohl's. Although Jones Apparel and Perry Ellis have responded to inquiries about their business relations with PT Sarasa, Kohl's has not. Hence, we urge you to send a letter or a fax to the CEO of Kohl's and express your outrage at the violation of workers' rights by PT Sarasa. Pressure Kohl's to use its leverage with the Indonesian company so that the workers are given back their jobs with an appropriate wage increase. Below is a sample letter to the CEO of Kohl's. Please use the information in this letter to compose your own. Chairman and CEO R. Lawrence Montgomery Dear Mr. Lawrence Montgomery, I am contacting you about the alarming situation at the PT. Sarasa Nugraha Tbk. Factory, Balaraja Unit in Indonesia. I understand that your merchandise is manufactured by this company and that you are continuing to do business with it. The Federasi Serikat Buruh Karya Utama (FSBKU) union has reported distressing news about the situation in the Balaraja Unit of the factory. Apparently, union members requested several meetings with the employers of the factory in December 2003 so as to discuss a wage increase for the workers, as was stipulated by the collective labor agreement (CLA) under which they were operating. The management's only response was to postpone the meeting three times. Finally, two months after the first meeting was scheduled, on February 3rd, 2004, the union leaders organized a work stoppage in response to these continuous delays. The factory's employers then agreed to hold a meeting on February 6th. However, instead of discussing the wage increases as was planned, they announced that the factory had to close its doors. As a result, 1652 workers and their family members are suffering from malnutrition because they no longer have any source of cash income. The workers are therefore demanding that their employer re-employ them and pay the delayed wages. Representatives of the employer and staff of the village-level bureaucracy then visited workers in their homes and asked them to accept their dismissal along with an offer of compensation which is around 25% of the amount required by the Indonesian law. If the workers accept, which they might be forced to given their delicate financial situation, they would no longer be operating under the collective labor agreement and would have to negotiate a contract individually. PT Sarasa is blatantly contravening the workers rights to freedom of association and collective bargaining, rights that should be protected under the International Labor Organization Conventions 87 and 98, which the Indonesian government has ratified. The behavior of PT Sarasa is unacceptable, and I urge you to use your leverage with the Indonesian company so that the workers are given back their jobs with an appropriate wage increase. I am aware that concerned labor rights groups, including the Clean Clothes Campaign and Campaign for Labor Rights, have contacted you about this issue. They are still waiting for a response from your company about what actions you plan to take to address this grave violation of labor rights. Kohl's has the responsibility, and the leverage, to affect changes there. I will keep on monitoring with close attention the unraveling of this situation with the hope that you will act upon it promptly. Sincerely,
Dear Minister, I have learned very distressing news from the Federasi Serikat Buruh Karya Utama (FSBKU) union in Indonesia regarding events at PT. Sarasa Nugraha Tbk., Balaraja Unit, located at Jl.Raya Serang KM.24,5 Balaraja Tangerang 15610 Indonesia. Apparently, union members requested several meetings with the employers of the factory in December 2003 so as to discuss a wage increase for the workers, as was stipulated by the collective labor agreement (CLA) under which they were operating. The management's only response was to postpone the meeting three times. Finally, two months after the first meeting was scheduled, on February 3rd, 2004, the union leaders organized a work stoppage in response to these continuous delays. The factory's employers then agreed to hold a meeting on February 6th. However, instead of discussing the wage increases as was planned, they announced that the factory had to close its doors. As a result, 1652 workers and their family members are suffering from malnutrition because they no longer have any source of cash income. Representatives of the employer and staff of the village-level bureaucracy then visited workers in their homes and asked them to accept their dismissal along with an offer of compensation which is around 25% of the amount required by the Indonesian law. If the workers accept, which they might be forced to given their delicate financial situation, they would no longer be operating under the collective labor agreement and would have to negotiate a contract individually. PT Sarasa is blatantly contravening the workers rights to freedom of association and collective bargaining, rights that should be protected under the International Labor Organization Conventions 87 and 98, which the Indonesian government has ratified. I understand that the dismissal of workers from this factory is being considered by the arbitration committee in your Ministry. I am writing to ask that you ensure that the committee comes to a swift and just decision in this case, since unnecessary delays in reaching a decision will cause considerable hardship to the workers involved. I trust you will ensure that PT Sarasa respects the labor laws of your country and fulfill the workers requests that their employer re-employ them as well as pay the delayed wages. I therefore request that you ensure that the case is decided in a just manner and without any undue delay. Sincerely, |
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