Fadli, Batam – Japan-based company PT Toyo Kanetsu Indonesia's plant in Batam, Riau Islands, has been forced to suspend operations after 400 of its workers, demanding an increase in their wages, began a strike on Thursday evening.

Apart from seeking a wage increase from Rp 1.5 million (US$156.51) to Rp 2.7 million per month, the workers also demanded their company, which has been established since 1976, scrap an outsourcing system.

The current strike, according to Djakfar, 55, one of protesting workers, was launched because the company still pays its workers below-standard wages even though they have demanded increases every year.

He said the company's wages were lower than comparable companies in Batam. For instance, he said, the company only paid its welders, both qualified and entry-level, Rp 8,000 per hour. In the area, he said, the standard hourly rate for welders was Rp 13,000.

Another worker, Mulyadi, said that he only earned Rp 1.5 million per month to feed his wife and two children. He said "Other similar companies in this area pay even new staff Rp 2.5 million per month."

"Every year, we've always held rallies demanding our employers increase our wages. I wish the company would treat its workers better," Djakfar said.

Meanwhile, Fadli, the chairman of the All Indonesian Workers Union (SPSI) branch at PT Toyo Kanetsu, said that the workers would continue their strike until their demands were met.

"We urge the company to eliminate the outsourcing system because it closes off the opportunity for temporary workers who have worked for years to become permanent staff," Fadli said.

Currently, workers and representatives from the company are meeting to discuss the demands. However, it would appear the talks have yet to reach an agreement.

Meanwhile, Batam Manpower Agency chief Zarefriadi said that he had no idea about the strike, and therefore, could not comment on it.

PT Toyo Kanetsu Indonesia produces various logistic products for the oil and gas industry such as pipes and fuel tanks.(riz)