Wednesday, July 04, 2007

Reebok maker owes billions to employees

The Jakarta Post
City News - April 17, 2007

TANGERANG: More than 6,500 employees from Reebok shoe producer PT Dong Joe Indonesia staged a rally at the company's Tangerang factory Monday in demand of close to RP 100 billion in unpaid salaries and severance pay.

The employees were suspended and have not been paid since September because of the company's apparent financial constraints, Ismail, chairman of the Indonesian National Workers Union (SPN), said.

Manpower agency head, Hasdanil, said company operators, known only as Cheon and Kim, suddenly halted factory operations last year and left for their homes in South Korea.

"Based on a previous agreement signed at the Jakarta Commercial Court, company management and workers agreed to terminate employee relations starting (Monday)," Ismail said.

The court declared the company bankrupt on December 7 last year and Bank Rakyat Indonesia has been appointed to auction company assets between March 21 and May 21 this year.

The company owes the workers Rp 26.2 billion in unpaid salaries and Rp 69 billion in severance pay.

Factory manager Harold Kussler said remaining assets on the site included the company's land, buildings and machinery.

"The shoes produced until September are too damaged to be sold," Kussler said.

"Based on the explanations given by several managers at the factory, there were no signs that the company would go bankrupt -- but the two bosses suddenly halted the production and left the country," Hasdanil said. -- JP



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