Mass Layoff Of 600 Employees, Waskita Beton Make Sure To Give Severance Pay

Construction illustration (Photo: dock. Antara)

JAKARTA - A subsidiary of PT Waskita Karya (Persero) Tbk (WSKT), namely PT Waskita Beton Precast Tbk, plans to terminate employment (PHK) for 600 employees. The company also ensures that it will fulfill the rights and compensation for affected employees.

Through the information disclosure of the Indonesia Stock Exchange (IDX), Waskita Beton Precast's management revealed that this decision was taken so that the company could run effectively with savings in terms of employee costs.

WSBP Director of Finance & Risk Management Asep Mudzakir said that the implementation of human resource management (HR) is carried out while still considering the performance and needs of each section or division while maintaining the company's target can be achieved optimally.

"The company's HR management policies always consider post-restructuring financial conditions, company performance targets, and the amount of contracts being managed. This is done so that the company can run effectively with efficient workloads of workers," he said, quoted on Tuesday, August 15.

The issuer with the stock code WSBP cannot confirm when the layoff was realized. However, Asep ensured that layoffs would be carried out throughout 2023.

"It can be conveyed that throughout 2023 the company will rationalize the number of employees in stages according to the end of the work period of employees in all divisions taking into account the condition of the company's workload and performance," he explained.

Make Sure Employee Rights Are Fulfilled

Asep emphasized that WSBP will ensure that all employees affected by the termination of employment will receive the rights and compensation in accordance with applicable regulations.

"The company ensures that the fulfillment of all rights and compensation of employees is in accordance with applicable laws and regulations. So that the rationalization process can run well and smoothly," he said.

Asep said, the company also ensures that the entire production and project work process will run as it should according to the time set in the contract with the customers.

Asep explained that the layoffs on 600 employees are in line with the company's financial transformation and restructuring program, with a target efficiency of operating expenses.

Through efficiency, he continued, the company targets the recovery of financial conditions to run well so that the Company can fulfill its debt payment obligations to Creditors according to the restructuring scheme.

"There is no material important information/event that can affect the company's survival and can affect the company's share price," he said.