Bank workforce vulnerable

Bank workforce vulnerable

JAKARTA (JP): Approximately two-thirds of the banking and
financial sector workforce could be laid-off as a result of the
economic crisis and reforms which need to be taken, the
Federation of All-Indonesia Workers Union (FSPSI) said.

Head of the union's commerce and banking industry sector,
Bomer Pasaribu, said here Tuesday that people would continue to
lose jobs in the banking sector until only one-third of those
originally employed remained.

He added that the cuts were in accordance with reforms
stipulated in the letter of intent signed by Indonesia in
exchange for assistance from the International Monetary Fund
(IMF).

"Indonesia doesn't have any other choice, and neither do the
employees," he said, adding that the current predicament was a
result of poorly planned development in the banking sector.

Bomer lamented the layoffs in the banking sector because the
employees were both skilled and educated.

"About 95 percent of them are educated, so it would be
dangerous to leave them unemployed for long," he remarked.

Bomer did not say exactly how many people could eventually
lose their jobs. However, he pointed out that the seven banks
suspended by the government on Saturday and the seven which are
now under state management employed a total of 25,000 workers.

From the banks now under the supervision of the Indonesian
Bank Restructuring Agency (IBRA), Bank Danamon, Bank Umum
Nasional and Bank Dagang Nasional Indonesia employ the highest
number of workers.

Antara quoted Bomer as saying that although the three banks
continued to operate, layoffs in response to a decline in
business resulting from public loss of confidence would be very
likely.

Bank Danamon was in the process of dismissing 700 workers even
before Saturday's announcement placed it under state management,
he noted.

"And remember that 40 other banks are already under IBRA
management and supervision, although the banks have not yet been
named," he said. (mds)