Wed, 13 Jul 2005

MCC to dismiss 433 employees

JAKARTA: The Mercure Convention Center and Hotel (MCC) has been given the authority to dismiss 433 of its employees who have been protesting the change in the hotel's management.

"We have to settle the matter to regain trust from the bank where we're applying for a loan to rennovate the hotel," MCC director Andi Sofyan said as reported by Antara on Tuesday.

Andi said the workers were disputing management company PT Hotel Realty International's decision to put the hotel under the supervision of Accor Hotel management. Employee protests outside the hotel in Ancol, North Jakarta, had sent guests away and caused losses to the business, he said.

The dispute has been brought to settlement body the Ministry of Manpower and Transmigration, which has given its approval for the layoffs.

A hotel manager, Baby Noviani, said the company was now calculating the amount of the severance payouts to be given to the dismissed employees.

The hotel is temporary closed pending the dispute's settlement and the recruitment of new employees. -- JP