IPTN to lay off 2,500 workers

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)