Adidas Workers Cannot Seize Company’s Assets
Monday, 03 September, 2007 | 13:22 WIB

Tempo Interactive, Jakarta: Manpower and Transmigration Minister Erman Soeparno stated that the workers of PT Tong Yang Indonesia (TYI) Group, which produces Adidas and Reebok shoes, cannot seize the company’s assets for their severance pay. This is because the main function of the company’s assets is for repaying debts to creditors, such as Bank Mandiri. “The remaining assets will then be distributed to employees,” he told Tempo yesterday (2/8).

He said PT Tong Yang has signed an agreement of salary and severance pay for its 9,000 workers. However, Erman was pessimistic that the company will fulfill its obligation. This is because PT Tong Yang did not have a complete financial statement. “They just signed the agreement. There’s no sign of payment,” said Erman.

PT TYI along with its group, PT Tirai Tapak Tiara, PT Tampuk Yudha Inti and PT Hi Woo Indonesia, are the receivers of Reebok and Adidas shoe orders. PT TYI Group has dismissed 9,000 employees since December 1, 2006 following the halt of shoe orders from Adidas since October 2006.

Since then, for eight months, thousands of workers have not received salaries. This is despite the fact when they were dismissed, the company promised to pay the workers’ salary by the calculation of 100 percent in the first month, 75 percent in the second, 50 percent in the third, and so on.

Based on the agreement among PT Tong Yang, employees and the Manpower and Transmigration Department on August 1, it was concluded that August 31 was the deadline for the company to give assurance of business continuation. If until the deadline the company is still unable to employ the workers, it must give the severance pay and the right of wages.

Earlier, Ratna Susilawati, Head of Industrial Relations at the Manpower Service, Bekasi Regency, stated that this case has already been filed at the Industrial Relations Court (PHI) West Java. So, when a company is declared bankrupt and unable to give severance pay, the court has the right to execute PT TYI’s assets.

Erman estimated that Tong Yang workers’ fate will hover like that of the other 60,000 workers who had a Termination of Work Relationship.

It is planned that on September 8, the workers will come to the company again to ask for assurance about their severance pay.

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