Issue No 118 | 02 November 2001 | |
NewsSTOP PRESS: Jakarta Shangri-La Hotel Workers Fined US$2 millionBy Jasper Goss
In a decision seen as precendent making, the South Jakarta District Court, has ordered seven dismissed union leaders from the luxury Shangri-La Hotel to pay over US$2 million in fines. The decision is highly unusual because a union representing workers has been regarded as a company under Indonesian law, in contradiction to the Trade Union Act of 2000, and the individual office bearers of that union have been held responsible, in a manner akin to company directors. If the decision is allowed to stand, a very powerful union-busting technique will be at the disposal of any company which wants to intimidate trade unions.
The case was brought against the workers for losses that the Jakarta hotel management claimed it had incurred during its three month closure and lock-out following an industrial dispute. On December 22 last year, a spontaneous protest occurred in response to the arbitary dismissal of the Shangri-La Jakarta Independent Labor Union (SPMS) president. Management reacted to this protest by closing the hotel and then in the following months dismissed hundreds of workers, including union members who were on holiday at the time and not invovled in the protest. While Indonesia's sham labour arbitration process gave management the right to fire the workers, the union has continued to maintain a peaceful and united campaign in order to secure the jobs back of the dismissed workers. Confronted with physical assaults and intimidati on Shangri-La workers have continue their struggle. This latest tactic is but one further sign of the lengths to which the hotel's owners will go to in their attempts to deny the workers their legitimate rights to be represnted by a union of their choice. The union's lawyer, Johnson Panjaitan, has said the case will be appealed to a higher court. Jasper Goss is Information and Research Officer with the Asia and Pacific regional secretariat of the International Union of Food, Agriculture, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations.
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