IPTN to lay off 2,500 workers

BANDUNG (JP): Consistent with streamlining its workforce due to financial problems, the state-owned aircraft manufacturer PT IPTN plans to retire early at least 2,500 employees within 10 months, a company manager says.

The company's human resources development and administration manager, Jusman SD, told journalists here on Friday that the company still employed 10,294 people. "The ideal number is 7,500 personnel."

The first phase of the workforce reduction was carried out last year when the company still employed a total of 15,750 people. Now it has reached the sixth phase of the layoff plan.

"There are still five phases, with between 500 and 600 people to be retired at each phase," Jusman said, adding that each phase took about two months to complete.

The early retirement in the sixth phase was offered to 9,800 staffers with academic titles or high level positions, mostly in the general administration and general technician and maintenance departments, Jusman said.

"Severance pay is based on working experience and employees' grade from A to E. The E grade employees get severance pay plus a bonus equal to one year's salary," he said. "Employees get one month to think about the offer."

To cover the huge amount of severance pay for the retired employees, the financially-strapped IPTN is selling 46 houses for foreign staff in Bandung. (25/sur)