PT BA will lay off 344 workers to boost efficiency

State owned coal mining company PT Batubara Bukit Asam (PT BA) which is based in Tanjung Enim, South Sumatra, will lay off as many as 344 workers as part of its management slimming program to boost efficiency, Sumatera Ekspres reported on Wednesday.

The company?s general director Mahbub, however, dismissed the allegation that the workers? reduction was part of the program to support the company?s privatization. "The lay-off is aimed at improving the efficiency not for privatization," he added.

The labor reduction will be the second time since the company laid off 280 workers in 2000. This time, the reduction is aimed at reducing the employment to the ideal level of 1,500 workers. "This indicates that the company could launch the same program next year," he added.

Mahbub said that the company has allocated about Rp 76 billion as the compensation payment for the workers. "After the deduction of tax, the total fund which will be received by the workers amount to Rp 57 billion," he said.

PT Bukit Asam, s one of the country?s major coal producers, has been included in the government?s privatization list, but the privatization has been opposed by the workers. (*)