Kartika promises no forced layoffs<\/p>\n
JAKARTA (JP): The management of Hotel Kartika Plaza promised
\nyesterday that it will not fire any workers as the hotel closes
\nfor as long as three years for major renovations. However, the
\nhotel is offering strong financial incentives to anyone willing
\nto resign.<\/p>\n
The hotel's chief commissioner, Brig. Gen. L. Mulyanto, said
\nin a statement that Kartika Plaza has set aside Rp 6.6 billion
\n($2.9 million) in severance pay for staff who opt to resign.<\/p>\n
The statement, written on the stationary of the Army's
\nInformation Service and made available to the press, stated that
\nboth the management and the Army leadership \"strongly hope there
\nwill be no layoffs.\"<\/p>\n
Employees who do not opt to participate in the voluntary
\nresignation scheme will continue to receive their monthly pay for
\nthe duration of the renovations, the statement said. The
\nmanagement promised that it will rehire workers who choose to
\nresign when the hotel reopens, expected within three years.<\/p>\n
The levels of severance pay offered are higher than those
\nmandated under the present labor regulations, it said, adding
\nthat the offer stands until Oct. 11.<\/p>\n
Employees of the three-star hotel, strategically located on
\nJl. Sudirman, Central Jakarta, went on strike on Monday after
\nthey heard rumors about impending dismissals.<\/p>\n
Their action caught the management by surprise and many guests
\ncomplained about the absence of even basic services. The hotel
\nformally ceased operations on Wednesday.<\/p>\n
The hotel is partly owned by PT Wisma Kartika, a business
\nmanaged by the Army's Cooperative. Last year, 60 percent of the
\nhotel's equity was acquired by businessman Fredy Gozali of PT
\nLuminari.<\/p>\n
Under the current renovation plans, the hotel will be enlarged
\nfrom 11 stories to 35 stories and will become a five-star
\nestablishment.<\/p>\n
The Ministry of Manpower has reportedly approved the voluntary
\nresignation program offered to Kartika Plaza employees.<\/p>\n
Suwarto, the ministry's director general of industrial
\nrelations and labor control, said the move was \"wise\", according
\nto the statement. (03)<\/p>",
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