IBRA to take on up to 30% of closed banks' employees
IBRA to take on up to 30% of closed banks' employees
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
plans to recruit from 20 percent to 30 percent of the 17,000
employees laid off following new bank closures, the agency's vice
chairman Eko Budianto said on Saturday.
"About half of the closed banks' employees who could not be
recruited by IBRA can still stay for one to two months at their
banks to help the agency do the final reconciliation work on the
closed bank," he said.
He guaranteed all of the workers affected by the closure of
the 38 banks would receive severance pay, merit allowances and
compensation for loss of work and benefits.
Based on Manpower Minister Decree No. 3, 1996, he said,
employees who worked for less than one year would receive two
months salary as severance pay, while those having worked for
four years or longer would be entitled to 10 months salary.
For merit allowances, valid for employment of a minimum five
years, employees of five years to 10 years are entitled to two
months salary. Those employed 25 years or longer will receive six
months salary.
In addition to severance pay and merit allowance, employees
also receive loss compensation for unused annual leave or
outstanding medical benefits.
The government on Saturday closed 38 insolvent banks and took
over seven others in a massive bank restructuring program. It
also agreed to recapitalize nine banks.
Eko said severance package payments would be made in April but
in the meantime employees would remain on the payroll.
He said some employees recruited by IBRA would be assigned to
oversee the assets of the closed banks.
IBRA has prepared a number of programs for the dismissed
workers, including opening employee grievance settlement centers,
which would help arbitrate any disputes over severance
entitlements.
The center, located at Plaza Bapindo, will open on March 20.
Other programs include a job and business opportunity fair,
with participation from companies in various industries seeking
employees or offering investment opportunities in sectors such as
agribusiness or trading. (02)