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In Indonesia, Unions Hit a Roadblock: Contract Labor

By WAYNE ARNOLD

SINGAPORE, May 20 - Only six years after being allowed to flourish following the Asian financial crisis, Indonesia's fledgling labor movement is backfiring on workers like Luluk Setyowati.

Last year, Ms. Luluk helped organize a union at CV Lengtat Tangerang Leather, a factory outside Jakarta that makes pieces for exported gloves and shoes. Then in November, she organized a protest against what union members say were broken promises by the company to increase employee benefits.

The company responded by locking out Ms. Luluk and her fellow demonstrators, replacing them with temporary contract workers. It has not paid them, and, to avoid paying a severance, it has not fired them.

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