Tripatra's massive layoff plan cannot be avoided

The head of the manpower office in Batam M. Arifin said that the plan of PT Tripatra Engineers and Constructors, the main labor supplier of PT Caltex Pacific Indonesia, could not be avoided due to the continued decline in exploration and production activities in the giant oil company, Neraca reported on Wednesday.

"Our task now is how to ensure that the massive layoff plan is carried out properly under the existing regulation," he said.

PT Tripatra plans to lay off 1,655 of its 6,000 workers beginning September this year. The Riau police have been on a full alert to prevent possible destruction of Caltex's exploration and production equipment by the workers to be affected by the layoff measure.

The workers union has threatened to mobilize their members in a protest of the layoff measure. The workers mobilization is feared to result in a major destruction of Caltex's assets.

PT Tripatra has recently offered an early pension package to about 2,700 of its workers but the offer has been turned down because the compensation to be provided by the company will be based only on work experience beginning 1998, while most of the workers have been working since 1993. (*)