Demand reinstatement for Indonesian Polo Ralph Lauren workers!

11 June 2004,
Dear Friends,

On February 3th, 2004, PT Sarasa Nugraha Tbk., Balaraja Unit, a factory in Indonesia that produces for Polo Ralph Lauren, announced that it was closing down after workers demanded the annual wage increase provided for in their collective bargaining agreement. On February 4th, the employer hired civil paramilitary groups and vigilantes to hinder workers from entering the factory and to secure the gradual movement of the factory assets to another factory owned by PT Sarasa. 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.

November 2004 update -
Settlement reached in PT Sarasa case
The last month of pressure on buyers and management to settle the PT Sarasa resulted in an agreement on October 11. The agreement included the promise to re-open the factory, under new investment, and reinstate 800 workers. This is good news, however the terms of the agreement are not in keeping with Indonesian legal standards, and are not up to the standards of the verdict reached in this case by the Central Labor Court.
Read more >>

December 2004:
PT Sarasa Nugraha is expected to reopen in January 2005;
management has promised to reinstate 800 workers. At this point in time, the campaign to pressure management to improve upon the agreement that was reached with workers in October has been suspended. However, the CCC will continue to monitor the situation at PT Sarasa and should continued efforts be needed to see that management lives up to the promises already made, requests for action will be posted to the website. The CCC thanks everyone who has helped to push for justice for the workers at PT Sarasa Nubraha!

For more information on this case, please contact Federasi Serikat Buruh Karya Utama (FSBKU) at fsbku@yahoo.com.

Source: Federasi Serikat Buruh Karya Utama (FSBKU)

The 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 half-day work stoppage on 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. Hence, about 1,652 workers and their families are 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 that 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, Kohl's Department Stores and Polo Ralph Lauren. Although Jones Apparel and Perry Ellis have responded to inquiries about their business relations with PT Sarasa, Polo Ralph Lauren and Kohl’s Department Stores haven’t. American consumers are writing to Kohl’s Department Stores to pressure the company to take responsibility for workers who have been producing their garments. We urge you to send a letter or a fax to the European head office of Polo Ralph Lauren in Geneva and express your outrage at the violation of workers' rights by PT Sarasa.

November 2004 update -
Settlement reached in PT Sarasa case
more action needed