10,000 jobs on the line, official says

10,000 jobs on the line, official says

JAKARTA (JP): Some 50 companies have asked the government for
permission to dismiss 10,000 employees because of economic
difficulties caused by the monetary crisis and forest fires, a
senior Ministry of Manpower official said yesterday.

"Most of the companies have asked for the authorization to
dismiss their employees," S. Sianturi, director of work rules at
the Directorate General of Industrial Relations Counseling and
Manpower Control, said.

"They come from various fields, including plywood, sawmill,
textile and shoes," Sianturi said after witnessing the signing of
a new collective labor agreement between management and employees
of PT Unilever Indonesia.

He declined to name the companies, but said their managements
had tried to settle their problems with workers' representatives
before turning to the government.

"Most have reached agreements with the workers, including on
the question of severance pay," he said.

The number of jobs on the line could swell the 6,000 lost
because of the government's decision on Nov. 1 to close 16
private banks, Sianturi said.

He suggested the banks redeploy employees instead of firing
them.

"Most of these banks are members of particular holding
companies."

The manpower law requires all companies to inform the
government of any decision to dismiss workers.

The monetary crisis has severely hit the property sector, and
textile and shoe manufacturers. Many companies have been forced
to either close down, or scale down employment.

Sianturi said wood-based companies affected by the forest
fires were among the 50 companies applying to dismiss workers.

He said his office had been closely monitoring companies'
activities in view of the monetary crisis, and had been producing
a weekly report on the situation.

There could be more companies seeking to dismiss their
employees to cope with the economic downturn in the coming weeks,
he said.

Some companies tried to avoid laying off their workers by
cutting working hours. "At least four or five companies have
reported decisions to cut working hours or shifts," he said.

One company has suspended its entire workforce with pay, he
said.

He appealed to the companies to give priority to their old
workers if and when the situation improves and they decide to
hire more workers. (cst)