Saturday, November 22, 2008

Riau Andalan Pulp and Paper termination 1.000 employess


Riau Andalan Pulp and Paper (RAPP) announced on Friday (21/11), forced to non-job thousand employees and impose to terminate of thousand employees. "This is to ensure the operational sustainability," said Director of Home RAPP Rudi Fajar.

Related to that policy, Rudi also said since 2007, the RAPP operational activities was  constraint of wood supply. Until now, there is no certainty guarantee of sufficient wood supply in order to maintain a stable level of production and efficient.

"The cause is the main difference in interpretation of the regulations in the forestry department between the government and bureaucratic obstacles in the permit," said Rudi.

In addition, the decline RAPP also the amount of production and high production costs. This is related to the global economic crisis at this time.

Previously, the service contractors of RAPP which not extend the contracts, have to do to terminat thousands of employees, in connection with the supply of wood materials crisis and the policies are effective RAPP.

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