Steel workers seek retirement

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)