Semen Cibinong fires 600 temporary workers<\/p>\n
Agus Maryono, The Jakarta Post, Purwokerto, Central Java<\/p>\n
The Cilacap plant of the country's third largest cement producer
\nPT Semen Cibinong recently dismissed 600 of its 900 temporary
\nworkers in the name of efficiency, an official said here on
\nMonday.<\/p>\n
The plant's community relations and security affairs manager,
\nTribowo, said the company decided to terminate the 600 workers
\nfollowing the sale of 74 percent of Semen Cibinong to the
\nSwitzerland-based international cement firm, HOL Cim.<\/p>\n
"PT Semen Cibinong's Cilacap plant was considered to be
\noverstaffed by 1,700 workers (both permanent and temporary). And
\nwith a total debt of US$500 million, the decision to terminate
\nthe temporary workers was unavoidable," Tribowo said.<\/p>\n
Besides dismissing the temporary employees, the company has
\nalso offered its 800 permanent employees early retirement.<\/p>\n
"For those applying for early retirement, they will receive
\ntheir monthly salaries until December of this year," Tribowo
\nsaid, adding that 27 permanent employees had accepted the offer
\nso far.<\/p>\n
He said the company paid out Rp 8.5 billion ($944,444) in
\nseverance benefits to the 600 workers.<\/p>\n
"On average, we gave each of them severance pay equal to their
\nsalary for 23 months, as required by government regulations," the
\nofficial said.<\/p>\n
Tribowo insisted the dismissal of the 600 workers was a
\nnecessary step, because the plant did not have enough work to go
\naround for all of its employees.<\/p>\n
"There were lots of workers standing around talking during
\nworking hours because there was nothing for them to do. This
\ncould have a negative impact on other workers who are working,"
\nhe said.<\/p>\n
The Cilacap plant has an annual production capacity of 4.1
\nmillion tons of cement. However, the plant is only able to
\noperate at 60 percent of capacity this year, he said.<\/p>\n
The plant produces cement under the Nusantara brand name.
\nEighty percent of its products are exported, while the remaining
\n20 percent is sold domestically.<\/p>\n
Though Tribowo said the dismissals were necessary, the 600
\nfired temporary workers staged a protest at the Cilacap regency
\nlegislative council on Monday.<\/p>\n
The workers claimed the terminations were unilaterally carried
\nout by the cement company, and they also demanded more severance
\npay than the company was offering.<\/p>\n
As of Monday afternoon, the two sides had not settled their
\ndifferences.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-cibinong-fires-600-temporary-workers-1447893297",
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"sponsor": "Okusi Associates",
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