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Jakarta Post

Bank Ekonomi Raharja employees call on OJK to postpone merger with HSBC

Anton Hermansyah (The Jakarta Post)
Jakarta
Thu, October 13, 2016

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Bank Ekonomi Raharja employees call on OJK to postpone merger with HSBC Lawyer Hotman Paris Hutapea (second right) speaks at a press conference held for the Bank Ekonomi Raharja labor union in Jakarta on Thursday. The union has called for a two-day strike on Oct. 27 and 28 to protest what it calls "discriminative" treatment in the Bank Ekonomi Raharja-HSBC Indonesia merger. (JP/Anton Hermansyah)

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labor union representing 1,980 employees of Bank Ekonomi Raharja (BER) will hold a two-day strike Oct. 27-28 to demand the Financial Service Authority (OJK) order the postponement of a merger between BER and foreign bank HSBC Indonesia until all parties agree to the terms and conditions, the union’s defense lawyer has said. 

"The union previously discussed the matter with BER and HSBC Indonesia managements in a forum facilitated by the Manpower Ministry's industrial dispute settlement department on Oct. 12, but the problem has not been resolved. However, the managements are continuing with integration," the union’s lawyer, Hotman Paris Hutapea, said at a press conference on Thursday.

The union wanted another round of negotiations with the two banks' managements regarding “discriminative” treatment between BER employees and HSBC Indonesia employees, Hotman said. 

He added that the merger would lead to the laying off of workers from both sides, but more BER workers would lose their jobs.

HSBC Indonesia voice regret over the union’s decision to call for a strike.

"We respect the comments and input from the labor union, and we are committed to solving the problem in a positive way," an HSBC Indonesia management spokesperson said in a letter.

Hong Kong-based HSBC Asia Pacific owns both banks and the merger is expected to be completed by April 17, 2017. (dan)

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