Mon, 28 Jul 2003

Intirub's pension benefits

I have worked with a tire producer, PT Intirub, in East Jakarta, which is owned by the government (9.9 percent) and PT Mega Safe Tyre Ind (of the Argo Pantes Group). Intirub's employees are members of the employer's pension fund, with contributions paid by both employees and the company.

In May 2003, Intirub rationalized and dismissed about 20 percent of its employees, including myself. In this case, the board of executive directors decided to pay compensation pursuant to Minister of Manpower Decree No.150/2000, article 27, paragraph 3, plus contributions of members of the pension fund.

I wish to obtain an explanation about the following matters from the relevant authorities: * How should Law No.13/2003 on manpower be observed? Can the unilateral decision of Intirub's executive board be justified? The company's argument is that Law No.13/2003 is not yet effective before a relevant presidential decree is issued, although the manpower minister has declared the law applicable. * How should pension fund members' contributions be calculated? As the president director of Intirub requested the dissolution of the company's pension fund, if Law No.13/2003 were enforced, would I be entitled to pension benefits or only member contributions?

RR SUPRIHATIN Jakarta