Commercial Law Case Analysis Plaintiff: Panitia Penyelesaian Perselisihan Perburuhan Pusat (P4P) Defendant: PT. Bouraq Indonesia Airlines Background to the Case The defendant is an airline that had 900 employees. The economic crisis followed by the monetary crisis had adverse effects on the accused. They should decrease the number of their planes from 9 to 2 planes. They also had to carry out efficiency on their employees bringing them to 700. On the efficiency process, there was an agreement between the respondent and the employee representation on 30 October 1998. The agreement stated that they would call an independent public accountant to analyze the company's financial situation. During the process, all parties should work on their duty. The defendant should pay the salary of the employees. The agreement was not a guarantee, which did not mean that the dispute process was over, but the negotiation continued anyway. During the trial, another agreement was concluded between the defendant and several employees. They agreed to bring the disputed trial to a close and that the employees would receive separation pay. Meanwhile other employees, 153 people, did not agree with that agreement. Since they did not agree with each other, the employees handed the case over to the "Panitia Penyelesaian Perselisihan Perburuhan Pusat (P4P)". Dissatisfied Employee Motivation They explained to P4P that they were understanding of the efficiency, but the decrease in productivity was not the employees' fault. Furthermore, there was an indication that the defendant would diversify the business, rather than pay redundancy payments to employees. Plaintiff's Reason During the tribunal, P4P issued the decision letter (No. 660/48/17-10/IX/PHK/4- 1999) that the defendant was not allowed to fire its employees. The reason was that there was no agreement between the defendant and the 153 employees. The defendant refused this decision letter because this would force the defendant to give the employees their jobs back and pay their wages.
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