Steel workers seek retirement

SERANG, West Java: Apparently lured by the handsome severance pay offered to employees dismissed earlier in an efficiency drive, at least 1,000 staff members of PT Krakatau Steel in Cilegon are seeking early retirement.

"I don't think we can grant their request because the funds made available for mass retirement are limited," PT Krakatau Steel director Soetoro Mangoensoewargo said yesterday.

Earlier, the company dismissed 452 employees in a move to trim its staff for better efficiency. It reportedly offered up to Rp 68 million (US$30,000) in severance pay to each of them.

Under the restructuring program, the company intends to reduce the number of its employees from 9,000 to 6,000. Many have been transferred to its sister companies.

Soetoro declined to mention how much PT Krakatau Steel has made available for severance payments. "But it will certainly not affect the company's financial performance," he said as quoted by Antara. (pan)