Asia

Noodle maker in hot water over crew payments

Jakarta: Listed instant noodle maker PT Indofood Sukses Makmur, owned by the Salim Group, is under fire for allegedly failing to properly pay its seafarers working on its Singapore-flagged ships.

The Australian Maritime Union stopped the MV Ocean Hiryu in Melbourne Port recently as the vessel transported wheat from Australia to Indonesia.

The International Transport Workers’ Federation (ITF) in Australia said all members of the crew were paid around $600 per month, including overtime payments and insurance coverage, well below International Labour Organisation (ILO) and ITF standards.
ITF Australia assistant coordinator Matt Purcell told the Jakarta Post: “The vessels are obliged to pay their crews in accordance with the ILO, ITF or Singaporean standards, although they’re registered in Jakarta because they are sailing under [flags of convenience] and their operators have never negotiated industrial relations with any unions in Indonesia, Singapore or Australia.”

As well as Ocean Hiryu there are another five ships also run by third party Apex Ship Management in Singapore, which the Jakarta Post misreported that it is owned by the Salim Group. SeaShip News contacted Apex. It is a third party manager, not owned by the Salim Group, but officials at the manager did confirm they are managing these ships for Indofoods. Another two ships are being built for Indofoods in China. The group also operates at least 14 Indonesia-flagged ships too.

“The Salim Group, now controlled by the late Sudono Salim’s prominent and influential son Anthony Salim, is too greedy. It has enjoyed various facilities and incentives to do business in the country since the New Order era, but it has underpaid its workers and has shown no commitment to making contributions to progress in the country,” said the chairman of the Indonesian Seafarers’ Association (KPI).

Indofood Sukses Makmur spokesman Indrayana denied the accusation.

He told the Jakarta Post his company had only five vessels and the management had paid the vessels’ crews in accordance with Singaporean and Indonesian standards.  [27/03/13]

Splash

Splash is Asia Shipping Media’s flagship title offering timely, informed and global news from the maritime industry 24/7.
Back to top button