HI group to dump 1,300 employees<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The management of Hotel Indonesia and Inna Wisata Hotel, PT Hotel
\nIndonesia Natour (HIN), is adamant it will dismiss around 1,300
\nemployees of both hotels.<\/p>\n
The company's president director, A.M. Suseto, told a press
\nconference on Monday that the planned build, operate and transfer
\n(BOT) agreement with investor PT Cipta Karya Bumi Indah (CKBI), a
\nsubsidiary of cigarette giant Djarum Group, would be in jeopardy
\nif the new management was obliged to accommodate the employees.<\/p>\n
\"We will continue the dismissal process, while the cases of
\nworkers who reject dismissal will be settled through another
\nprocedure based on regulations,\" he said.<\/p>\n
The two hotels stopped accepting guests on April 15 and will
\nfully stop operation on April 30.<\/p>\n
Suseto said the severance packages of dismissed workers would
\nbe 150 percent of that stipulated in Article 156 of Law No.
\n13\/2003 on manpower.<\/p>\n
Hotel Indonesia workers union president Sahrul Sidiq reject
\nthe dismissals on behalf of the workers.<\/p>\n
\"We have worked here a long time, so why would the management
\nabandon us when it wants to upgrade our workplace?\" said Sahrul,
\nwho led his colleagues in another protest rally in the Hotel
\nIndonesia compound.<\/p>\n
Suseto said that although there was no guarantee the 1,300
\nhotel workers would be employed by the new investor when
\nrenovations were completed, they would be among the first to be
\nconsidered by the new management for recruitment.<\/p>\n
Kastorius Sinaga, PT HIN commissioner, argued that the new
\nhotel and the supermall, to be built on the site of Inna Wisata
\nHotel, would create around 5,000 jobs.<\/p>\n
The government, as owner of both of the hotels, has
\nprincipally agreed on the takeover. However, the BOT agreement
\nhas yet to be signed by PT CKBI and PT HIN.<\/p>\n
According to Suseto, PT CKBI was the only investor ready to
\ninvest US$150 million in the project after three foreign
\ncompanies withdrew from bidding due to security concerns in the
\ncountry.<\/p>\n
Built in the 1960s, Hotel Indonesia was facing the possibility
\nof being closed next year if no investor had been found because
\nthe management could not afford to improve the existing
\nfacilities of the four-star hotel.<\/p>",
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"sponsor": "Okusi Associates",
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