Over 300 Bouraq employees protest dismissal plan

JAKARTA (JP): More than 300 employees of privately run Bouraq Indonesia Airlines staged a demonstration at the firm's head office on Jl. Angkasa, Central Jakarta, yesterday, to protest the management's plan to dismiss them amid the economic crisis.

The employees, consisting of pilots, flight attendants and technicians, started the demonstration at 11 a.m. by sticking posters that mocked and criticized the firm's executives on windows.

Capt. Jarot H., spokesman for the demonstrating employees, said the company's management had announced it would dismiss employees starting Sept. 1.

Another employee, Rudi, said the number of employees to be dismissed in stages would be 1,300. The company's total workforce is 1,700.

"The company promised only to give severance pay amounting to half the amount stated in the existing manpower regulation," Jarot said.

He said the company planned to pay out the employees' severance pay in installments over one year.

The protesters have rejected the plan, claiming that the company's financial problems originated from corruption and inefficiency and had not been caused by the economic crisis.

Jarot said most of the employees had been given furlough since February and their salaries had been cut by 50 percent. The employees' monthly salaries range from Rp 2 million and Rp 300,000.

"We offered to continue working despite the salary cuts. But the company rejected the idea, saying that with half a salary we would lose our spirit to work," Jarot said.

He said Bouraq currently operated four Boeing planes and four smaller planes which were wholly owned by the company.

The company's former president, Benny Rungkat, met with the demonstrators and promised to deliver their demands to the company's board of directors.

"I think the directors will still listen to me. I support your demonstration, but don't cause any damages," Benny told the protesters.

He agreed with the protesters that the company could survive if the company was clean from corrupt and inefficient practices.

He disagreed with the company's attempts to dismiss the employees, saying that they were the company's priceless assets.

"The company spent billions of rupiah to improve your work skills," Benny said.

The employees dispersed at 1:30 p.m. after accepting that no executive of the company wanted to meet them.

In July, the company dismissed 21 contract flight attendants and gave them severance pay of between Rp 1.5 million and Rp 3 million each.

The economic crisis has severely hit the local airline industry and thousands of employees have been dismissed.

The largest number was from Sempati Air, a company controlled by former president Soeharto's youngest son Hutomo Mandala Putra, which dismissed its 1,800 employees following its closure on June 6.

Financial turmoil has also hit Mandala Airlines, forcing it to dismiss 40 flight attendants. (jun)