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UOB Buana workers launch strikes, disrupt bank operations
Thousands of workers of UOB Buana Bank, a local unit of Singapore-based United Overseas Bank Ltd launched a three-day strike on Monday, disrupting the bank’s operations nationwide
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Thousands of workers of UOB Buana Bank, a local unit of Singapore-based United Overseas Bank Ltd launched a three-day strike on Monday, disrupting the bank’s operations nationwide.
UOB labor union secretary general Endang Sutisna said the strike was launched after the management and workers failed to make a deal during a meeting on Sunday night over the workers’ demands for a pay rise and annual bonus payment.
“We have been demanding it since January, but there has not yet been any response from the management, and the last night’s meeting was the climax to the problem,” Endang said.
He said at least 4,000 workers from 23 branch offices were joining the strike, which was expected to last until Wednesday. Currently, UOB employs 5,800 workers and operates 35 branches nationally.
The strike has disrupted the bank’s operation as most of its branches could only provide limited service to customers with a majority of workers going for the strike.
The management announced in a letter distributed to the bank’s branches on Monday that only some branches in Jakarta, Surabaya, Semarang, Batam, Medan, Bandung, and Palembang were able to provide full services for customers.
UOB director for corporate services Safrullah Hadi Saleh said the company had not yet calculated the losses from the strike, but “it would try to minimize the level, while trying to renegotiate with the workers”.
He said the company had asked the Manpower and Transmigration Ministry to mediate in negotiations.
“We will meet again with the workers tomorrow (today) at the ministry’s office,” Safrullah said.
The meeting will discuss four proposals from the workers, including demands that the management increase workers’ salaries by 26 percent and pay the 2008 annual bonus at the same level as in 2007.
The management has so far refused to grant the workers’ demands given that the banking industry has been severely hit by the global economic crisis, forcing the bank to restrain its cash flow.
However, the bank’s latest financial result show that UOB posted a net profit before tax of Rp 179.3 billion (US$15.9 million) in the first quarter of 2009, an increase from Rp 112.65 billion in the same period of last year. Its assets also grew by 22.5 percent to Rp 22.37 trillion as of March 2009.
Endang said the workers would insist on fighting for their rights until the management granted their requests.
“We will be back for work next Monday (April 13), but if the management do not give what we want, we will plan for another strike.”
Businesses will be closed on Thursday for the legislative election, and Friday for Easter.
UOB Buana went private in November last year after its subsidiary, United Overseas Bank brought its share ownership up to 98.99 percent from 61.13 percent.
