News Room - Business/Economics

Posted on 28 Mar 2013

Krakatau Steel workers in wage dispute

Hundreds of workers grouped under PT Krakatau Steel Labor Union Federation (FSBKS) staged a rally at the Banten gubernatorial office on Jl. Brig. KH. Syam’un in Serang on Tuesday.

 

Muhari, one of the workers, said they demanded for the provincial administration to mediate the dispute with the state-owned management firm over monthly wages, as the administration had promised.

 

“As of today, we have yet to see the administration take any concrete steps to mediate between workers and the company,” he said.

 

Manpower agency head Erik Syehabudin said the administration had contacted the company to set up a meeting. “We have turned down the company’s request to suspend the implementation of the 2013 wage rate that obliges them to pay a minimum Rp 2.2 million [US$230] to the workers,” he said.

 

Krakatau Steel spokesman Wisnu Kuncara said they had agreed to comply with the regulation in a meeting on March 18. “But we still need to discuss the details regarding wages with the administration.”