SOEs labor union wants stock option facility<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta Post<\/p>\n
The Federation of State-Owned Company Labor Unions (FSP-BUMN)
\ndemanded that employees of state-owned enterprises (SOEs) be
\nallowed to own shares in the SOE they work for via a stock option
\nfacility so that they can have a role in supervising the SOEs.<\/p>\n
Chairman of FSP-BUMN Bambang S. Syukur said on Wednesday that
\nthe stock option facility should be included in the bill on SOEs,
\nwhich is currently being drafted by the government.<\/p>\n
\"If employees could buy shares in the SOE, we could have
\nrepresentatives on the board of commissioners as supervisors,\" he
\ntold reporters on the sidelines of a seminar on SOEs and
\nprivatization.<\/p>\n
He said that employees should at least have a 20 percent stake
\nin the SOE they work for to protect their interests, which
\nincludes fending off the adverse affects of privatization.<\/p>\n
In addition, based on Law No 21\/2000 on Labor Union, employees
\nmay buy SOE shares.<\/p>\n
FSP-BUMN who staged an anti-privatization protest in mid-April
\nsaid the privatization program would only inflict losses on the
\ncountry, including massive layoffs.<\/p>\n
\"There have been cases where the privatization of SOEs has
\nbeen successful, but many cause trouble, and spark disputes
\nbetween employees and the company's board of directors,\" Bambang
\nsaid, referring to the failed privatization of some SOEs that
\nhave met resistance from employees.<\/p>\n
For the past three years, the government has been trying to
\nprivatize SOEs in a bid to raise more cash for the state budget
\nand improve the poor performance of SOEs.<\/p>\n
At present there are more than 160 SOEs in Indonesia.
\nAccording to a 1997 audit result, more than half are in a weak
\nfinancial condition. SOEs poor performance was mainly due to
\ninefficiency, poor management and corruption.<\/p>\n
However, the government effort to push the privatization
\nprogram has met opposition from various parties, including SOE
\nemployees.<\/p>\n
Last year, the government failed to complete the sale of a
\nstake in 16 SOEs that was expected to rake in some Rp 6.5
\ntrillion (US$730 million) to help plug the deficit in the state
\nbudget.<\/p>\n
Revrisond Baswir, a noted economist of Gajah Mada University,
\nsaid that giving shares to employees was an important part of
\nrestructuring SOEs.<\/p>\n
\"Giving share ownership to employees will increase their share
\nin supervising SOEs,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soes-labor-union-wants-stock-option-facility-1447893297",
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