IBRA urged to settle severance pay issue<\/p>\n
JAKARTA (JP): The Indonesian Legal Aid Institute Foundation
\n(YLBHI) has urged the government to immediately settle severance
\npay demands made by employees of the 38 banks closed down by the
\ngovernment.<\/p>\n
YLBHI senior official, Teten Masduki, said in a letter sent to
\nchairman of the Indonesian Bank Restructuring Agency (IBRA) on
\nMonday, that the government had to increase the compensation
\npackage because the proposed one was based on 1996 economic
\nconditions.<\/p>\n
\"There has to be an immediate solution to prevent the bank
\nliquidation process from dragging on,\" he said.<\/p>\n
The government closed down 38 banks on March 13 in a bid to
\nrestructure the country's ailing banking industry, making
\nredundant more than 17,000 employees.<\/p>\n
Since the closures, the bank employees have been staging
\ndemonstrations demanding a higher severance pay than the one
\nproposed by the government.<\/p>\n
Their strike has caused difficulties for depositors, whose
\nfunds are guaranteed by the government, to withdraw funds from
\nchanneling banks, due to an inability to obtain account
\nverifications from bank employees.<\/p>\n
Several economists and politicians have supported their
\ndemands, urging IBRA to force the bank owners to provide
\nadditional redundancy payments for their former employees.<\/p>\n
Legislator Paskah Suzetta said that based on the 1998 Banking
\nLaw, the government was responsible for settling the severance
\npay problem.<\/p>\n
Secretary General of the Indonesian Banking and Financial
\nSector Workers Association Saepul Tavip, urged IBRA to force the
\nbank owners to settle the severance pay demand.<\/p>\n
Separately, Thomas Suyatno, a chief commissioner at the closed
\nBank Aspac, said the owners of the 38 banks had appointed banking
\nlaw expert Remy Sjahdeini, as their representative in any
\nnegotiation. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-urged-to-settle-severance-pay-issue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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