E. Java workers may lose jobs

SURABAYA, East Java: The economic crisis has caused 10 companies in East Java to ask for the government's permission to dismiss 2,864 workers.

An official with the province's manpower office, Mul Effendy, said yesterday the request for the mass dismissal had been made in the last three months.

"The number of layoffs may increase in the coming months, but we hope we can curb it," Effendy was quoted by Antara as saying, adding that the figure excluded individual dismissals.

He refused to name the 10 companies, but said they were firms exporting shoes, engines, textiles, electronic and metal goods, and construction companies.

Altogether they employ 8,865 workers.

The companies are located in Surabaya and the neighboring towns of Gresik, Sidoarjo and Malang.

Effendy said six of the companies had reached agreement with their workers on severance payment, while the other four are still negotiating the payment.

"We have called on management of the companies to reduce working hours and the extra work of their employees or improve efficiency by not wasting energy, but to no avail," he said. (amd)