2nd January 2001, Strike at PT Citra Abadi Sejati

Dear Friends, The following is a report on the recent strike that took place at PT Citra Abadi Sejati. We heard from ABGteks that the situation at the factory last week was stable. We will keep you updated on the follow-up by management to this action and let you know if further pressure on the companies invovlved (Nike, Levi's H&M, Talbotts, Liz Claiborn, Ralph lauren, and Calvin Klein) is needed.

Information from ABGTeks (textile-garment sector of the GSBI union federation), Jakarta, 15.12.00, translated by Celia Mather.

PT Citra Abadi Sejati is a subsidiary of the Texmaco Group, producing: Nike, Levi's, H & M, Talbott, Liz Caiborne, Dockers, Ralph Lauren, Calvin Klein.

On 13 December 2000, the factory was hit by a strike involving about 4000 of its workers, with the strike continuing until today (15 December). The strike started when the management failed to give an Annual Bonus whereas in 1998 and 1999 all workers received such a bonus.

The demands of the workers of PT Citra Abadi Sejati are: - a 100% bonus for all workers - the public holiday (Lebaran) to be extended - removal of the pension fund - increase of food money from Rp.1300 to Rp.3000 - social insurance fund (Jamsostek/Askes) - leave provision (annual and menstruation).

On the first day the strike only lasted until 09.00, with no negotiations as the management failed to respond. On the second day the strike lasted until 16.00. At 11.30 the Director, Mr. Bonar, came and asked for representatives to discuss the workers' demands because all workers on strike were not prepared to be represented by the SP-TSK (SPSI) workers' organisation that exists in the factory.

The meeting lasted from 12.00-14.30 with unclear results, i.e.: - the Annual Leave awaits determination until Mr. Manimaren Manimutu, President Director of Texmaco returns from the USA on 21 December - the question of the Lebaran holiday to be rediscussed on 18 December. - the ending of the Pension Fund is agreed by management; workers will only be able to retrieve their contributions after the age of 45 years. - the raise in the food money will be implemented as from 10 January 2000 (sic, possibly 2001), taking into consideration the prices of food. - the social insurance (Jamsostek/Askes) will be re-evaluated and harmonised with that of PT Buana Perkasa Garment (another subsidiary of Texmaco) - leave (annual and menstruation) will be clarified and implemented according to the Collaboration Agreement (KKB) (signed between SP-TSK and management). - All workers will return to work on 15 December 2000.

When these results of the negotiation were read out in front of about 4000 workers of PT Citra Abadi Sejati, the workers' response was to continue their strike and to plan a meeting with the workers of PT Busana Perkasa Garment in Bogor to ask them to join in the strike and go to the headquarters of Texmaco in Jakarta.

Various of the workers approached ABGTeks/GSBI to accompany them and give guidance because the strike underway was not under the coordination of the SP-TSK union that exists in the factory, and according to information received the SP-TSK leadership did not want to take responsibility for the strike and its consequences.

The latest developments are that the factory has agreed to give an Annual Bonus of 50%, but according to Managing Director Mr. Murugappa, if the workers continue to demand 100%, the factory will close because this three-day strike has cost the firm billions of rupiah.

During the strike, local security apparatus from the Army and the Police have been present at the factory but there has been no use of force or intimidation.

The workers' lack of credibility in SP-TSK results from the fact that deductions are made from the workers' wages for unclear reasons, and there has been an increase in membership dues to SP-TSK from Rp.500 to Rp.1,700. The reaction of the workers at PT Citra Abadi has been to question the existence of the SP-TSK. The workers are also concerned over the Employees Cooperative which is owned by the factory, whose funds from workers' contributions amounting to billions of rupiah over the years do not amount to much and have never been enjoyed by the workers. The information from workers is that they suspect the Cooperative funds are being used by the management.

We are passing on this information now, in case there is intimidation or workers are dismissed because of the strike.