Monthly Archives: May 2012

E-Action: Support Paper Workers Union of PT. Pindo Deli

You can sign a petition supporting striking paper workers of Serikat Pekerja Kertas Pindo Deli (SPK PD) in West Java by going here.

Paper Workers Union of PT. Pindo Deli (SPK PD) decided to hold second strike commencing on June 4, 2012 at 00. 00 am that will last for 14 days. This decision taken after a deadlock on wage negotiation held after the first strike. The Management of PT. Pindo Deli failed to positively respond the workers union’s (SPK PD) demand to raise the wages of workers based on the working appraisal /performance or commonly known as End-Year Assessment. The response of the management is a denial on the commitment they made when the workers held first strike on May 7 – 8th 2012.

PT Pindo Deli, a paper company with world-class production capacities, is a subsidiary of Sinar Mas Group and has become a very important part of Asian Pulp & Paper (APP) companies. As the major-class exporter for the American, Europe and Asian countries markets, this company employs not less than 13.000 workers.

The strike again is the last choice decided by the union when the door of negotiation has been closed or met dead lock. The company has neglected the demand submitted by the union to raise the workers wages by 18%, comprising of the wage increase due to the deviation of raise on the Regional Minimum Wages 2012 of Karawang District and raise upon the workers’ working appraisal. This formula of wage proposed by the union has become important aspect since the company has never given rewards or recognition to workers who had been serving for years. The current applicable system only allows wage raise of 16,000 rupiahs (2 US $) per year for workers who have been working for more than 20 years.


Settlement At Nestle Panjang

Workers at a Nestle factory in Panjang have reached a settlement in which 53 union members will be reinstated.  From the IUF:

The IUF and Nestlé welcome the settlement of the dispute at Panjang, Indonesia, around the status of 53 employees whose employment was terminated on October 5 and 6, 2011. Throughout the entire dispute dialogue was maintained and Nestlé Indonesia has now offered the 53 former workers the opportunity to be re-employed under the same conditions with no negative consequences to the workers concerned. This brings the labour dispute in Panjang, Indonesia, to a conclusion. The IUF-affiliated SBNIP will sign the Collective Bargaining Agreement with Nestlé Indonesia, and both local parties have committed to seek to resolve future challenges in a respectful and constructive manner.

For previous posts on the Nestle Panjang campaign, go here.

Victory for KSP2KI Paperworkers Union

From the International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM):

A strike by ICEM Indonesian affiliate KSP2KI at one of the world’s largest paper mills last week produced sizeable salary increases for over 13,000 workers. With strike support from nearly all workers at Asia Pulp and Paper’s (APP) PT Pindo Deli’s twin mills in Karawang, West Java, the union achieved substantially more than the minimum government-mandated increase that APP was at first willing to distribute.

As well, KSP2KI won substantial increases for the lowest paid paperworkers and an APP pledge that it would engage in continuous social dialogue with the union.

FSP2KI Strike Leaders

The two-year accord became retroactive to 1 April and grants workers, in some cases, a doubling of the provincial government minimum. KSP2KI, or  Federasi Serikat Pekerja Pulp Dan Kertas, the Pulp and Paper Union of Indonesia, announced a three-day strike on 7 May but because of the large strike turnout, management resumed talks and agreed to the across-the-board increases on the day the strike started.

E-Action: Support PT Kizone Workers

The Clean Clothes Campaign has posted an online campaign in which you can send an e-mail to Adidas urging them to pay the workers of PT Kizone the severance pay they are owed.

Adidas are refusing to pay a cent to Indonesian workers who are still owed US$ 1.8 million in severance pay a year after their factory, PT Kizone, closed down.

In January 2011, the owner of PT Kizone in Indonesia fled, resulting in the closure of the factory in April the same year, and leaving 2,800 workers without work and the severance pay they were entitled to. Sportswear brand adidas had been sourcing from PT Kizone for many years, where workers were paid as little as US$ 0.60 an hour.

For more information on the PT Kizone campaign, you can go to the Workers Rights Consortium (WRC) page here.

Wisconsin Students Demonstrate In Support of PT Kizone Workers

Students at the University of Wisconsin-Madison demonstrated on campus last week in support of Indonesian garment workers formerly employed by PT Kizone.  The PT Kizone facility in Indonesia produced collegiate-licensed apparel for Nike and Adidas and its owners are accused of closing down their facility and fleeing in January 2011 without paying workers the $3.4 million in severance pay that they are owed under Indonesian labor law.

The rally, organized by the Student Labor Action Coalition (SLAC), was held to demand the university hold Adidas accountable for the labor violations.  Adidas is a current supplier of athletic apparel to the university.

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You can find more information on the PT Kizone dispute and the campaign by university students in the United States to hold the garment industry accountable at the Workers Rights Consortium website.


After May Day: SBY’s ‘Gifts’ For Workers?

From The Jakarta Globe:

The government on Monday announced more plans to improve workers’ conditions.  “This May there will be gifts from president Susilo Bambang Yudhoyono for the workers,” Muhaimin said.

Muhaimin said the government would increase the threshold before which a salary is taxed from Rp 1.3 million toRp 2 million ($142 to $218). The government, he said, was also building hospitals and providing laborers with cheap transportation.

Propserous Justice Party (PKS) lawmaker Indra SH said the tax plan would increase laborers’ welfare and had his support.

But Indonesian Democratic Party of Struggle (PDI-P) lawmaker Rieke Dyah Pitaloka said the pledge was like “giving toys to children” and urged workers not to be swayed. She said the government should do more.