Indonesian Political, Business & Finance News

Thousands of timber workers laid off

| Source: JP

Thousands of timber workers laid off

JAMBI, Jambi: Almost 2,000 timber workers have been laid off
in Jambi during the past few weeks because of slow business
there, with workers complaining their severance pay was illegally
low.

Among those laid off were 1,300 former workers of PT NPP,
which operated in Muarojambi regency, Jambi province.

A NPP worker, Purwanto, who received a single month's wages of
severance pay this week, said the company was not holding to an
earlier agreement it would give workers severance of two month's
wages.

Chief of the local manpower office Haris Rachim said the
company had paid an adequate amount to the workers. "The
government can not force the company to pay severance pay in full
as the company is really bankrupt," Haris said.

Many timber companies lack raw materials since the government
launched a nationwide campaign to eradicate illegal logging in
March this year. -- JP

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