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Aug 5, 2005
Workers Reinstated at PT Sarasa
Balaraja
 Following
a long remediation process spearheaded by the CCC,
the Campaign for Labor Rights (CLR), and the Worker
Rights Consortium (WRC), hundreds of workers have
been reinstated at an Indonesian garment factory
that was the site of a long-running dispute and
the subject of several CCC calls for action.
PT Sarasa Balaraja (now PT Panca Brothers Swakarsa),
a garment production facility in Balaraja (Northwest
Jakarta), Indonesia was unlawfully closed in February
2004 by its parent company as a means of preventing
the factory union from completing wage negotiations.
Pressure on buyers and management to settle the
dispute resulted in an agreement on October 2004
to re-open the factory, under new investment, and
reinstate unjustly dismissed 800 workers. Several
PT Sarasa clients, including Polo Ralph Lauren,
The Limited and Jones New York, contacted management
to during this process to push them to settle the
dispute. We are pleased to report that as of August
2005 PT Sarasa Balaraja has now fully complied with
its commitment to reinstate all of the 800 previously
illegally terminated employees who were interested
in returning. Approximately 700 employees returned,
while the other 100 either took up employment at
other locations or chose to take severance pay instead.
In some instances PT Sarasa Balaraja management
also helped former employees find work at new factories.
The WRC reports that the factory’s orders seem
to be stabilising and the workers are hopeful that
factory conditions will soon be stable enough for
them to resume the formation of their union. As
the factory’s orders continue to stabilise,
the CCC and allies working on this case will continue
to monitor the broader, basic code compliance issues
(such as occupational health and safety, wages,
hours and overtime) and address any concerns that
arise as needed. Thanks to all CCC supporters who
took the time to send messages of concerns to factory
management and the brands involved in this case!
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