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Strike Closes Bali Hai Beach Club

Island Staff Walk Off Jobs to Protest Suspensions. Evening, Reef and Ocean Rafting Cruise Programs Continue to Operate.

(2/13/2004) Following the suspension by Management of four staff for misappropriation of company assets, a large number of Bali Hai Cruises island beach resort staff called a wildcat strike on Tuesday, February 10, 2004, disrupting the Company's beach resort cruise and accommodation programs at Nusa Lembongan Island. Because the strike is limited to the Company's island staff, operations of Bali Hai's Reef cruises to an off-shore pontoon, their Ocean Rafting Dolphin Cruises and Evening Dinner Cruises continue to operate without interruption.

According to the Company's Management and Local Labor Department Officials quoted in the Indonesian-language Bali Post, the strike is illegal, failing to conform to Government regulations that require 7 days prior notice to the Company and local labor officials before launching any industrial action.

Local press reports state that representatives from the Klungkung Regency Labor Office and Police are continuing to monitor the situation while meeting with the Company's management and representatives of the striking workers.