300 members of the ITF-affiliated union at Jakarta International Container Terminal (JICT) took action on Wednesday to condemn the extension of Hutchinson operations at the terminal.
Since making a deal in 2015, Hutchison is obligated to pay a rental fee of USD 85 million a year to the state operator for the extension of it’s operations in Jakarta. But according to investment documents, if that obligation isn’t met the rental fee falls to JICT to pay leaving Hutchison with bumper profits and the cost of the fees potentially being passed on to workers.
ITF president and dockers’ section chair Paddy Crumlin said: “This agreement seems to us to be totally pitted against workers and against honest investments in the economy of Indonesia.
“Workers were outside Hutchison offices this week in Jakarta to send the message loud and clear that they don’t want their rights donated to support a multinational company in this way. If the state operator is left to foot a bill that should be paid by a private company it follows that investment in health and safety and worker wages at the port could be impacted.
“The union, and we, are not against foreign investment but on this occasion they would much rather the port was managed independently in a way that values their input and is driven by consultation and shared interest.
“We will continue to support the union at JICT in its mission to expose this agreement for the dud deal it is and ultimately to see it cancelled.”
The ITF is committed to raising health and safety standards, ensuring decent rates of pay and tackling union busting at global multinationals regardless of their operating location.