Laid-off BNI workers agree to $4.2m compensation offer<\/p>\n
JAKARTA (JP): After a series of meetings with Bank Negara
\nIndonesia (BNI), 438 laid-off workers of the state bank accepted
\non Tuesday compensation packages totaling Rp 32 billion (US$4.2
\nmillion).<\/p>\n
Although the date of payment has yet to be set due to
\ntechnical problems, the workers expressed satisfaction with the
\nagreement.<\/p>\n
\"We're relieved to be able to say that the bank's compensation
\nscheme finally meets our expectations,\" said Asikin Yunus, one of
\nthe workers' representatives in meetings with BNI executives.<\/p>\n
The last meeting between the two parties was held at the
\nJakarta Legal Aid Institute (LBH) on Tuesday, watched intently by
\n60 former employees from several BNI branches in the country.<\/p>\n
BNI previously informed the 438 people -- aged from 53 to
\nunder 55 and employed in positions ranging from low-ranking staff
\nto heads of branch offices -- they were laid off effective on
\nJuly 1 this year. They were told they would receive a full
\nmonthly salary until they reached retirement age of 55 and their
\npensions took effect, Muhammad Sadili, one of the group, said.<\/p>\n
However, the bank subsequently announced the early retirement
\nof 750 workers, including the 438, effective on Aug. 1, the
\nformer head of the BNI branch in Harmoni, Central Jakarta, said.<\/p>\n
The workers objected because the early retirement decision
\ncanceled their monthly salaries.<\/p>\n
Their representatives asked the LBH office on July 7 to seek a
\nbetter compensation scheme from BNI.<\/p>\n
After six meetings with the bank's executives at the LBH
\noffice, both parties agreed on the new scheme offered by BNI in
\nwhich the laid-off workers would receive their full salaries,
\nincluding several allowances inclusive of housing, telephone
\npayments and transportation.<\/p>\n
BNI's director of planning and human resources, Syaifuddien
\nHasan, told employees on Tuesday: \"We've made lots of
\ncompromises. In fact, it would cost us only Rp 17 billion if you
\nall went back to work until your retirement.\"<\/p>\n
He did not explain the additional costs entailed in the
\ncompensation package.<\/p>\n
According to one of the former employees, BNI budgeted Rp 225
\nbillion for the 750 employees, but most of the money was allotted
\nfor employees laid off at its overseas branches.<\/p>\n
The bank has branches in Singapore, London, Hong Kong, New
\nYork, the Cayman Islands and Tokyo.<\/p>\n
Along with other state banks, BNI agreed to lay off 5 percent
\nof its workforce in line with the arrangement between the
\nInternational Monetary Fund (IMF) and the government to
\nrestructure the banking sector.<\/p>\n
The measure is expected to enhance the banks' efficiency and
\nrender them suitable for the government's sweeping
\nrecapitalization program.<\/p>\n
A lawyer at LBH, Rita Olivia, believed that BNI used the
\nrecapitalization stipulation as the pretext to lay off the
\nworkers.<\/p>\n
\"It's odd that BNI would only have to pay Rp 17 billion
\nwithout the layoffs, not Rp 32 billion. So where is the
\nefficiency they are talking about?\"<\/p>\n
She said BNI should pursue its bad debtors instead of
\ndisrupting the lives of its employees through unsuitable cost-
\ncutting measures. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/laid-off-bni-workers-agree-to-42m-compensation-offer-1447893297",
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