Layoffs

Layoffs

The company where I was once employed, PT IBP, located on the
fifth floor of Plaza Aminta, Jl. TB Simatupang Kav. 10, Jakarta
12430 between March and June 1998 laid off hundreds of employees,
including me, solely on the grounds of declining activities and
without observing prevailing laws/procedure, particularly the law
on labor, such as for example: nonpossession of a license from
the manpower ministry, no transparent financial reports, no
economization efforts such as a reduction in the salaries of
members of the board of directors, abolition of overtime,
reduction in work hours, salary adjustment and so forth.

It should be noted that 81 percent of the shares of PT IBP are
controlled by a French company, ALSTOM, domiciled at Mulia Tower,
Jl. Gatot Subroto Kav. 9-11, Jakarta 12930 and dealing in
international-scale manufacturing and construction of electrical
instruments and facilities and other technological equipment. On
June 22, 1998 ALSTOM went international (Indonesian Observer,
June 23, 1998 and Kompas, June 24, 1998) when it listed its
shares on stock exchanges in Paris, New York and London. In view
of ALSTOM's condition, PT IBP should not have laid off hundreds
of its employees. We have tried to hold dialogs with the company
but to no avail.

For the sake of law enforcement and legal certainty, we hope
that relevant government agencies and readers/observers may
respond to the matter at hand so that what has happened to me and
hundreds of other employees subjected to these layoffs will not
set a bad precedent for other companies.

ASIKIN EFFENDI

Jakarta