Thu, 13 May 2004

50 HI workers reject package

JAKARTA: At least 50 out of the 1,115 employees of Hotel Indonesia and Hotel Inna Wisata were still refusing to accept the severance packages offered by the hotels' old management as of Wednesday -- the deadline set by the management for them to accept the offer.

Maman Resmana, one of the employees, argued that the package being offered was smaller than that available to workers before the agreement between the labor union and the old management PT Hotel Indonesia Natour (HIN) was signed last Monday.

He claimed he would only get Rp 44.8 million (US$5,270) in severance pay plus Rp 9.8 million as a lump-sum payment in lieu of his pension for his 20 years of service. By contrast, he said he was holding out for Rp 100 million.

Most of the protesting workers have been working for the hotels for between 15 and 25 years. Due to their age, they are unlikely to be reemployed by the hotels' new management.

The new management is currently renovating the Hotel Indonesia, while the Inna Wisata will be replaced with a supermall.

PT HIN has set aside about Rp 41 billion on severance pay for the 1,115 employees.--JP