PPD workers object to reduced severance pay<\/p>\n
Bambang Nurbianto
\nJakarta<\/p>\n
Around 700 employees of state bus operator PPD have demanded they
\nreceive severance pay of 50 times of their monthly salary as
\npreviously agreed to in a meeting between employees, company
\nmanagement and the House of Representatives earlier this year.<\/p>\n
PPD employees legal advisor Azas Tigor Nainggolan told The
\nJakarta Post on Wednesday the workers were dissatisfied with the
\nmanagement's decision to cut their severance pay to only 34 times
\ntheir salary.<\/p>\n
\"They can't accept this unilateral decision by the
\nmanagement,\" Tigor said after a meeting with worker
\nrepresentatives here.<\/p>\n
As part of the company's restructuring plan, PPD management
\nplans to dismiss about 2,000 of its 5,149 employees, including
\nbus drivers, crews and administrative staff.<\/p>\n
The dismissal of about 700 workers is the first phase of the
\nrestructure.<\/p>\n
An employee, who requested anonymity, said the company had
\npromised to prepare about Rp 34 billion (US$3.78 million) in cash
\nto compensate the dismissed workers.<\/p>\n
However, the company's new executives were now arguing they
\ndid not have enough money.<\/p>\n
\"We don't believe the reason given by the management -- that
\nthey don't have the money. The new executives must implement the
\ndecision made by their predecessors,\" the worker said.<\/p>\n
Tigor blamed the State Minister of State Enterprises office
\nfor approving the management's proposal to cut the payout.<\/p>\n
\"Due to the cut, the workers are now alleging there were
\ncorrupt practices involving officials from the PPD management and
\nthe state minister's office,\" he said.<\/p>\n
Currently, PPD has about 350 buses and 5,419 employees. To
\nmake the company financially healthy, it wants to reduce the
\nnumber of workers to about 3,000 people. PPD also plans to buy a
\nnew fleet of 170 buses this year.<\/p>\n
Company administrative and financial director Hendarpo said
\nthe restructuring would cost from between Rp 100 billion and Rp
\n150 billion.<\/p>\n
The employees said while they had agreed with the company's
\nrestructuring plan, workers becoming eligible for pensions must
\nbe paid a fair compensation.<\/p>\n
\"I support the restructuring program but I hope we, as the
\nworkers, won't be sacrificed for it,\" another employee said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ppd-workers-object-to-reduced-severance-pay-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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