Kartika promises no forced layoffs
Kartika promises no forced layoffs
JAKARTA (JP): The management of Hotel Kartika Plaza promised
yesterday that it will not fire any workers as the hotel closes
for as long as three years for major renovations. However, the
hotel is offering strong financial incentives to anyone willing
to resign.
The hotel's chief commissioner, Brig. Gen. L. Mulyanto, said
in a statement that Kartika Plaza has set aside Rp 6.6 billion
($2.9 million) in severance pay for staff who opt to resign.
The statement, written on the stationary of the Army's
Information Service and made available to the press, stated that
both the management and the Army leadership "strongly hope there
will be no layoffs."
Employees who do not opt to participate in the voluntary
resignation scheme will continue to receive their monthly pay for
the duration of the renovations, the statement said. The
management promised that it will rehire workers who choose to
resign when the hotel reopens, expected within three years.
The levels of severance pay offered are higher than those
mandated under the present labor regulations, it said, adding
that the offer stands until Oct. 11.
Employees of the three-star hotel, strategically located on
Jl. Sudirman, Central Jakarta, went on strike on Monday after
they heard rumors about impending dismissals.
Their action caught the management by surprise and many guests
complained about the absence of even basic services. The hotel
formally ceased operations on Wednesday.
The hotel is partly owned by PT Wisma Kartika, a business
managed by the Army's Cooperative. Last year, 60 percent of the
hotel's equity was acquired by businessman Fredy Gozali of PT
Luminari.
Under the current renovation plans, the hotel will be enlarged
from 11 stories to 35 stories and will become a five-star
establishment.
The Ministry of Manpower has reportedly approved the voluntary
resignation program offered to Kartika Plaza employees.
Suwarto, the ministry's director general of industrial
relations and labor control, said the move was "wise", according
to the statement. (03)