Firms neglect to pay holiday bonuses

Firms neglect to pay holiday bonuses

Andi Hajramurni, The Jakarta Post/Makassar

Lukman's hopes of celebrating the Idul Fitri holiday have been
dashed after his company PT SGP decided not to pay Idul Fitri
bonuses.

The 28-year old worker has no idea why his company has
not paid the bonuses. "There is no explanation from the company
even though Idul Fitri is only five days away," said Lukman, an
employee of the timber company.

Lukman was disappointed as he had planned to purchase clothes
and household equipment for his loved ones to be used on the
special day.

If he were to rely on his salary, it would be not enough
because it is barely enough to make ends meet after the fuel
price hike.

"I was really counting on the bonus to celebrate Idul Fitri,
but what can I say," said the father of one.

Similarly, Vina, an employee of PT SM, a chocolate processing
factory, also said she had not received an Idul Fitri bonus
although her company had earlier promised to pay the equivalent
of one month's salary.

Vina, however, said it was understandable because the company
had faced financial difficulties since the government raised fuel
prices.

The rising fuel prices had jacked up production costs, making
it difficult for the company to cover its overhead costs. The
company has even suspended several employees.

"Hopes are still high that we will be given the Idul Fitri
bonus, moreover, currently we are spending a lot of money to
cover Idul Fitri expenses. But it is disappointing," said Vina.

Candrayana, the director of timber company PT Kahutindo, said
the fuel price hike had increased operational costs such as the
transportation. "While the operational cost is on the rise,
people's purchasing power is declining, resulting in less timber
sold," said Candrayana.

If the fuel price is increased yet again by the government,
the company will surely lay off its employees, said Candrayana.

PT Kahutindo is just one among many companies in Makassar
which have not paid the bonuses on the back of fuel price hike.

The government itself cannot do anything to resolve the
problem as paying Idul Fitri bonuses is voluntary, meaning that
the companies are not obliged to pay the bonuses if they are not
financially sound, said chief of Makassar Manpower Office, Baso
Bachtiar.