'RCTI' plans to lay off employees<\/p>\n
JAKARTA (JP): In a bid to continue operations, the privately
\nowned RCTI television station will lay off 20 to 30 percent of
\nits 620 regular employees, Eduard Depari, public relations
\nmanager at the station, said on Friday.<\/p>\n
Eduard said a final decision on the plan was expected on
\nMonday from the board of directors of the Rajawali Citra Televisi
\nIndonesia and would be effective as of March 1.<\/p>\n
As required by law, the station has asked the Ministry of
\nManpower's permission to carry out the mass firing, he said. The
\nministry will consider the request when the company forwards the
\nname of the employees to be dismissed.<\/p>\n
\"We have enacted cost-saving measures in all other phases of
\nour operation,\" Eduard told The Jakarta Post, adding that
\npolitical uncertainty contributed to the decision. The ministry
\nwill likely allow the dismissals considering the company's
\nfinancial difficulties, he said.<\/p>\n
Eduard said that station management predicted net revenue by
\nthe end of this year would reach a maximum of Rp 140 billion.
\nLast year the station netted Rp 200 billion, while in 1997 the
\nstation's income was Rp 360 billion.<\/p>\n
He said that advertisers were discouraged by the declining
\npurchasing power of consumers.<\/p>\n
\"We have to make a choice between reducing the number of
\nemployees or sinking all together,\" Eduard said.<\/p>\n
The layoffs will affect all departments, including editorial,
\nfinancial, sales and production. In response to how much the
\nstation, run by publicly listed PT Bimantara Citra, expected to
\nsave from the layoffs, Eduard said he could not reveal figures.
\nHe added that couples working at the station would have to choose
\nif it would be the husband or wife who would leave the company.<\/p>\n
\"We've been hit by this crisis for the last two years,\" he
\nsaid, adding management hinted to employees two years ago that
\nthey were not ruling out the possibility of layoffs.<\/p>\n
Since the economic crisis began, the station, which turns 10
\nyears old this year, stopped recruiting new employees and buying
\nforeign programs, dismissed a number of expatriate employees and
\nfroze wage hikes.<\/p>\n
Eduard added that local programs were still expensive, costing
\nat least Rp 75 million.<\/p>\n
The planned firings were recently conveyed to employees in an
\n\"open dialog\", he said. Severance pay for dismissed employees
\nwill be based on manpower laws and the company's \"best offer\".
\n(anr)<\/p>",
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