Indonesian Political, Business & Finance News

Staffs of closed banks vow to continue strikes

| Source: JP

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)

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