Laid-off workers to get some financial relief

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)