Staffs of closed banks vow to continue strikes

JAKARTA (JP): Employees of banks closed by the government late last week pledged on Tuesday to continue their strike unless demands for fair severance payment were met.

Striking employees of most of the 38 closed banks frustrated bank customers who were anxious to retrieve money from their accounts and valuable items from bank safety boxes.

Bank branch office employees across the country participated in the strike.

"We'll work again to serve customers after our demands are met," said a bank employee.

Some 50 employees from 14 closed banks who visited the Jakarta Legal Aid Institute on Tuesday, rejected the severance payment offered by the Indonesian Bank Restructuring Agency (IBRA).

"It's too small. The bank closure is not our mistake, it's the owner's (fault). We need more (money)," bank employee spokesman Yusuf said, without specifying IBRA's payment offer.

According to Yusuf, an Aspac Bank employee, bank staff demanded a severance payment between three times and five times that stipulated in the existing manpower regulation.

He said IBRA had offered severance payments in accordance with the regulation but failed to discuss the amount with the employees as required by the regulation.

The ruling states that a worker who has been with a company for less than five years is entitled to severance pay equal to one-month's salary.

Maximum severance

The maximum severance pay is for employees who have been with a company for over 35 years. These employees are entitled to severance pay equal to 11 months of salary.

On Saturday, the government closed 38 private banks, nationalized seven other institutions and announced plans to recapitalize nine private banks.

It is estimated that 17,000 workers will loose their jobs as a result of the closures.

The announcement ignited workers of the closed banks across the country to stage a full-blown strike for fair severance payments.

Yusuf said employees of several closed banks, including Bank Papan Sejahtera and Bank Intan, would continue to strike until their demands were met.

"We will not serve customers who want to withdraw their deposits. We don't care if the customers destroy our office," a Bank Intan employee said.

He said the bank's owner, businessman Fadel Muhammad supported the employees, advising staff from bank branches across the country to go on strike.

The employee, who asked for anonymity, gave no further details.

"We also refuse to provide data on bank employees and customers to IBRA until our demands are fulfilled," Yusuf said.

Employees of Bank Papan Sejahtera locked computer lines to prevent IBRA from obtaining bank data, a bank employee said.

"We will open the computer lines only after we receive a sign that a fair severance payment will be given," an employee said.

Support

Lawyer Surya Chandra of the Jakarta Legal Aid Institute expressed support for the bank employees' agenda.

"Legally, they are still bank employees. They have the right to go on strike if there's a working dispute."

He suggested the employees unite to push their demands, saying they must confront IBRA executives, who would firmly uphold their decision.

Separately, the Association of Banking and Finance Worker Union which arranged the meeting, encouraged the striking employees to maintain a sense of solidarity.

"Based on our experiences on past bank closures, we will win if we stay united," association spokesman Nicolaus Laga said.

The association demanded the government review the manpower regulation, suggesting it increase the severance payment to at least 10 times the employees' salary.

The difference between packages offered to private bank employees as opposed to state banks employees was extreme, Nicolaus said.

He said the government would give an average Rp 100 million (US$11,100) each to about 800 employees of four state banks -- Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bank Bapindo -- who face dismissal when the banks merge with Bank Mandiri. (jun/bsr)