Jakarta – The management of Shangri-La Hotel has accepted the decision of the government-sanctioned Central Committee for the Settlement of Labor Disputes which granted its request to lay off 248 of the hotel's striking employees.
The number added to the 303 employees who finally resigned last month after staging a strike over improvement in welfare in December last year.
Shangri-La senior manager Wastu Widanto said on Saturday the 248 employees will receive separation pay as stipulated in the Minister of Manpower decree No. 150/2000 on workers dismissal and separation pay.
He said that the workers will receive a dismissal bonus, which also includes a sum received according to their length of service and medical benefits plus their salary for January. "Each former employee may take home between Rp 8 million and Rp 15 million on average, depending on their period of service," he told The Jakarta Post.
Wastu believed that the labor dispute committee's decision, which was issued on Thursday, had settled the prolonged dispute. "With this decision, we are confident that the labor issue that began over three months ago is finally settled. We can now fully focus on the future." However, the dismissed employees rejected the committee's decision, saying they would ask the Jakarta Administrative Court to annul the decision since it only benefits the hotel management, but not the employees.
Chairman of the hotel's independent labor union Halilintar Nurdin said the dispute could not be settled by the committee since it was a criminal case so it should be brought to court. "The hotel management charged us with violating the law and violating our contracts. Such accusations must be proven before a court," he added.
The dispute revolved around the employees' demand for better salaries and welfare facilities. The workers claimed they were paid only Rp 280,000, far below the Rp 384,000 official minimum wage. According to Wastu, the monthly salary of the resigned and dismissed employees was more than Rp 482,000.
Workers occupied the hotel on December 22, forcing the hotel to close for about three months, the closure of which had caused some US$8.59 million in financial losses.
Instead of meeting workers' demands, the management dismissed 420 members and executives of the labor union. Some accepted it, but many others rejected what they claimed was a one-sided decision of the hotel management. The hotel resumed operations on March 17.