BBD offers high severance pay

BBD offers high severance pay

JAKARTA (JP): State-owned Bank Bumi Daya (BBD) will provide up
to Rp 150 million (about US$17,000) in severance pay to bank
officials who choose to resign or take an early retirement.

"BBD employees who have been with the bank for five to six
years are entitled to good severance pay if they want to resign,"
BBD's director, Ira Hendraman, was quoted as saying by Antara on
Monday.

Hendraman said the merger of the four state banks -- Bank
Dagang Negara, Bank Ekspor Impor, Bank Pembangunan Indonesia and
Bank Bumi Daya -- into Bank Mandiri had resulted in the
redundancy of many employees.

"We want all 8,000 employees of BBD to continue to work, but
the facts say otherwise. BBD's employees have to compete with
employees of the other three state banks to pass the Bank Mandiri
recruitment test," Hendraman said.

Bank Mandiri is currently selecting 18,000 of the 26,000
employees from the four state banks.

BBD's severance pay offer, amounting to about 50 months'
salary, contrasts with the severance package offered to employees
of the 38 banks recently closed by the government.

The employees of those closed banks who worked for less than
one year will receive two months' salary as severance pay, while
those having worked for four years or longer would be entitled to
10 months' salary. (02)