Laid-off workers to get some financial relief

JAKARTA (JP): Workers who have been laid-off due to the economic crisis may get some reprieve as the state-owned insurance company, PT Jamsostek, has promised to provide each of them between Rp 100,000 (US$7.15) and Rp 250,000.

Bambang Poerwoko, Jamsostek's director for program development and members' service affairs, told journalists yesterday that workers dismissed as a result of the economic crisis were eligible for social assistance regardless of their participation in the social security program.

He said the company had allocated Rp 1.4 billion in aid for dismissed workers.

The allocated funds are being taken from the special fund for the improvement of workers' welfare, which the company has set aside from its annual profit.

"Workers dismissed because of the economic crisis will be given between Rp 100,000 and Rp 250,000 to help them seek other jobs," he said.

Dismissed workers are asked to take to the company, or a branch office, notification that they have been dismissed to claim the cash, he said.

Bambang added that those who have been laid off due to the crisis but had participated in the social security program for at least five years could also claim their pension funds.

"Despite the small sums involved, the pension funds are also expected to be helpful for dismissed workers to survive the economic crisis," he said,

Bambang said that since January, the company has paid out Rp 70.2 million in pension funds to dismissed workers who had contributed to the pension fund for at least five years.

"Everyday, all Jamsostek branch offices in Java serve about 250 dismissed workers who want to draw their pension funds," he said.

According to official data from the Ministry of Manpower, between October 1997 and July 11, 1998, 718 troubled companies fired 108,910 workers, 96 companies are currently in the process of dismissing 13,352 workers and another 196 companies are planning to dismiss 57,836 workers.

Companies are required to report to the ministry prior to dismissing workers.

However Pudji Astuti, a Ministry of Manpower spokesperson, estimates that the number of dismissed workers had reached 350,000 since many troubled companies which did not have collective labor agreements with their workers had not reported dismissals. (rms)