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