Govt to dismiss 2,000 to restructure PPD<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
Adding insult to injury of the employees of state-owned Djakarta
\nTransportation bus company (PPD), the government has planned to
\nlay off about 2,000 workers as part of its efforts to improve the
\ncompany's feasibility.<\/p>\n
Minister for Transportation and Telecommunication Agum Gumelar
\nsaid on Thursday that the dismissal would take place within the
\nnext six months, and added that the company would buy 150 new
\nbuses during the same period.<\/p>\n
"To restructure the company, we have to buy more buses and
\nreduce the number of employees," the minister said, adding that
\nthe restructuring was being supervised by the office of the State
\nMinister of State Enterprises.<\/p>\n
He said that currently, the company employed 12 workers to run
\na single bus, while the ideal number was five workers per bus.<\/p>\n
"We have 450 operating buses and plan to buy 150 more," Agum
\nsaid, and explained that this plan would improve the ratio of
\ncrews to buses.<\/p>\n
The company has about 5,000 workers, but with the new
\narrangement, it would only need 3,000 workers to operate 600
\nbuses.<\/p>\n
"We have to do this to improve the performance of the company
\nand to provide better public services for the people, and we need
\npublic support on this issue," Agum remarked.<\/p>\n
His comment came a day after PPD workers went on strike to
\nprotest the company's inability to pay their salaries for the
\nlast three months.<\/p>\n
In response to the strike, Minister of Manpower and
\nTransmigration Jacob Nuwa Wea planned to hold a meeting between
\nPPD employees and management on April 14.<\/p>\n
Wednesday's strike was the latest incident in the prolonged
\ndispute of the company, which has suffered many losses and is
\nrenowned for providing substandard public service.<\/p>\n
The central government once proposed to the Jakarta
\nadministration to take over the company, but the city was
\nreluctant to accept the proposal, as they would also be taking
\nover PPD's huge loans.<\/p>\n
Agum said that the government needed about Rp 190 billion
\n(US$21.6million) to finance the restructuring and that the money
\nwould be raised by selling several assets of the company.<\/p>\n
"For severance pay, the company needs around Rp 100 billion,
\nwhile it needs Rp 30 billion to buy buses and Rp 33 billion to
\npay the employees' monthly salaries, and the remaining balance
\nfor supporting the six-month restructuring program," Agum said.<\/p>\n
He said the asset sales was expected to generate about Rp 200
\nbillion for the government.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-dismiss-2000-to-restructure-ppd-1447893297",
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"sponsor": "Okusi Associates",
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