Home

About Us

Alerts

Campaigns

Join CLR

Resources

Kahatex, Indonesia: Reinstate Workers Now!

Workers at the PT Kahatex factory in Indonesia are STILL fighting to get management to comply with past agreements including paying the minimum wage and legally required benefits. After being bribed into accepting illegally-low severance pay, the factory is now asking locked-out workers to pay back this money in order to get reinstated even though the factory will strip them of their seniority.

Despite these outrageous circumstances, workers believe that management could be ready to give in to their demands and have asked us to renew pressure on factory manager Liz Chen. Workers will be meeting with Ms. Chen in the next few days, so it is important that we act quickly to show her that the international community will not stand for this abuse of workers' rights!

TAKE ACTION TODAY

Send a letter to the following decision maker(s):
Ms. Liz Chen, factory manager
Chicera Kaha Headquarters
Jakarta Kaha Headquarters
Kahatex Head Office

BACKGROUND

Chronology of Events at PT Kahatex Sweater

April 28th: Due to extremely low and wage discrimination between female and male employees, worker representatives from each line (there is no union yet) asked the president, Ms. Chen to raise their wages in accordance with the law; she refused to do this. She has stated on several occasion that her workers are "lazy" -- particularly the men -- and that’s why they are getting such low wages. She said she’s trying to "teach employees how to become competitive in the global market place."

May 1st: The workers asked for KPS (Kelompok Pekerja Sweater), an informal union-like organization consisting of mainly Kahatex Sweater employees and a few outside labor organizers, to represent them in negotiation with management over wage issues. At the end of the meeting the members of management promised to deliver a response the next day about specifically raising the piece rate of a few styles.

May 2nd: Management reported that they did not intend to give any wage increase for any of the styles or otherwise.

May 3rd: Management refused to negotiate again with employees or their representatives.

May 5th: The knitting department went on strike.

May 6th: All employees joined in the strike. Later in the day workers and management negotiated in the presence of a representative from the Ministry of Manpower.

May 7th: Second negotiation session with the Ministry of Manpower.

May 9th: Agreement was reached between employee reps, the Kahatex management, and the Ministry of Manpower stating that the company would raise the piece rate of two styles.

On this same day, the factory personnel manager Paulus Setiawar signed a declaration from the company promising that PT Kahatex Sweater would pay the legal minimum wage, as well as provide health insurance, overtime compensation, and menstrual/maternity/annual leave.

These two settlements appeared to have been made in good faith by management, ending negotiations of several days; however, when the next pay period arrived (May 24th), the expected change in wages reportedly did not take place, resulting in the spontaneous strike of the majority of workers.

May 27th: Management declared that those who were willing to accept the pay of PT Kahatex Sweater could go back to work, but those who refused the pay rate could not re-enter the factory and should sign their names up on a list. THE 537 EMPLOYEES WHO REFUSED THE SUB-MINIMUM WAGE PAY REMAIN LOCKED OUT UNTIL THIS DAY.

June 4th: Management offered the 537 employees who had demonstrated their discontent with the sub-minimum wage pay only 15% of their legal severance. To this day these 537 employees have held strong, refusing the bribes and ridiculously low severance.

June 10th: PT Kahatex Sweater management and employees received arbitration from the local parliament of Bandung, resulting in the parliament’s recommendation that all 537 currently locked-out employees should be reinstated immediately.

July 8th: The 537 illegally locked-out workers, joined in solidarity by dozens of other workers from other Kahatex facilities, form a picket line in front of the factory grounds in an attempt to prevent any good from going in or out. Scores of police and hired thugs close in on the scene.

July 10th: Two worker leaders are arrested and jailed for allegedly harassing and hitting a member of management who was trying to convince protesters to accept illegally low severance pay. The picket line comes to a halt as workers flee in fear of police brutality and further arrests.

July 16th: After days of long negotiations and intimidation tactics used by all levels of Kahatex management, hired thugs, and security guards of the factory grounds the locked-out workers are pressured into accepting termination and a sub-standard severance package. In exchange of forcing workers to accept a severance package that falls 30% short of what the law requires workers are given the "carrot" (only a verbal promise) of the release of the two jailed worker leaders and jobs at the factory again as soon as orders "return to normal". Many workers have reported seeing orders being subcontracted to local home industries to give the impression that the company is now vacant due to the strike.

July 17th: The two worker leaders are released from prison but not all of the charges are dropped.

July 23rd: Many workers haven't received the full amount of severance as agreed upon on July 16th. Managing Director of Kahatex Sweater, Liz Chen, tells some of the worker leaders that the workers can return -- but she refuses to provide back pay, demands that the workers repay the severance they have received, while also giving up all of their seniority, and expects the workers to return at their old (illegally low) wage levels.

TAKE ACTION

Send a letter to the following decision maker(s):
Ms. Liz Chen: [email protected]
Chicera Kaha Headquarters: [email protected]
Jakarta Kaha Headquarters: [email protected]
Kahatex Head Office: [email protected]

Please also email [email protected] with Subject: Kahatex, letting CLR know about the actions you have taken and any response you get, so that we can keep our partners informed.

SAMPLE LETTER

Dear [decision maker],
United Students Against Sweatshops (USAS) and Campaign for Labor Rights (CLR), which combined constitute a network of thousands of students and other citizens across the United States, remain concerned about the mistreatment of workers at your PT Kahatex Sweater factory in Bandung, Indonesia.

I have been following the situation in the past weeks and understand that not only have many of the locked out workers been denied the full severance package you agreed to on July 16, but that you are requiring that these workers pay this money back to the factory in exchange for reinstatement in addition to forfeiting their accrued seniority. These outrageous demands will not be accepted by your workers or their supporters in the international community.

I support PT Kahatex workers in their demands that:
-All 537 locked-out workers be reinstated immediately
-Employees must not be required to pay back any of the severace pay they have received
-Workers who have not received the full amount of severance agreed to on July 17 must be given the outstanding amount immediately
-All locked-out employees must be fully reimbursed for their unused annual leave during their entire time of employment at Kahatex
-Most importantly, you must begin paying the legal minimum wage (UMK) and all other normative rights agreed to on May 9

I expect that you will immediately fulfill your legal obligations and commitments to workers by complying with these demands. As consumers of brands such as Levi's, Columbia, SEARS, Reebok, Nike, H&M, Jones Apparel, and Target/Mervyn's, USAS is prepared to bring this situation to the attention of these companies if you continue to violate workers' rights.

Sincerely,
[your name and contact information]