PPD staff welcome layoff plan

PPD staff welcome layoff plan

M. Taufiqurrahman, The Jakarta Post, Jakarta

Employees of ailing state-run Djakarta Transportation Bus Company
(PPD) unexpectedly welcomed the government's plan to lay off
around 2,000 workers early next year in a bid to improve the
company's poor performance.

Some drivers told The Jakarta Post on Sunday that they would
be more than happy to be laid off in the first phase, which will
affect around 1,000 employees, on the condition that the Djakarta
PPD would provide considerable compensation in accordance with
manpower ministry regulations.

"If the plan to lay off some 1,000 employees is realized, I
prefer to be the first. There's not much we can do for the
company now," said Darmin, a tour-bus driver.

Although he has yet to reach retirement age, Darmin would
submit a resignation letter to the PPD management as soon as the
restructuring program commenced.

He argued that the company was overstaffed, but the bus fleet
had been declining over the past few years.

Currently, the Djakarta PPD employs 5,388 workers as public
servants. The company suspended recruitment in 1995, due to its
declining profit.

The Ministry of Communications issued a plan in April to lay
off about 2,000 Djakarta PPD employees and purchase 150 new buses
to rejuvenate the aging fleet.

The company has 751 buses, all of which are over 10 years old.
Of these, only 315 are roadworthy and they serve only 44 routes
of the 152 originally mapped out by the Jakarta administration.

Another driver, Ahmad (not his real name), said he preferred
to quit and start a new business.

"Instead of working under uncertain conditions like this, it's
better for me to start my own business with the compensation
money, if the amount is sufficient," said the intercity bus
driver.

Djakarta PPD data shows that the average monthly income is
around Rp 7.5 billion, while expenses -- including salaries,
fuel, maintenance, meal allowances and administrative costs for
the company's 15 offices and one garage -- average Rp 11 billion
a month.

Rampant corruption and mismanaged assets have been blamed for
the deterioration of the company, which once boasted the largest
fleet in the capital.

Bonar Manurung, an official from the office of the State
Minister for State Enterprises who has been tasked with
supervising the restructuring of the company, said last month
that the government had only Rp 75 billion to finance the lay-
offs and the restructuring program.

He said the Djakarta PPD would need around Rp 60 billion to
compensate the 1,000 employees of the first lay-off phase.

PPD spokesman Safrudin Dahlan said a joint team from the
Ministry of Communications, the office of the State Minister for
State Enterprises and the PPD would complete the lay-off scheme
early next year.

"The scheme ... will determine which employees will go, based
the education, loyalty to the company and achievements during
their tenure," he said.

Safrudin also said he would like to see his name on the lay-
off list soon.