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December 12, 2024 | 12:04 pm
TEMPO.CO, Jakarta - Axiata Group Chief Executive Officer Vivek Sood has made a statement on what will happen to the employees of PT XL Axiata Tbk (IDX: EXCL) after the company's merger with PT Smartfren Telecom Tbk (IDX: FREN) is completed. Vivek said there will be no rationalization, including termination of employment, at least before the merger process is completed.
"If there is rationalization later, after a certain period of time, the support payment and compensation have been calculated fairly, maybe even more than fairly," Vivek said in Jakarta on Wednesday, December 11.
According to Vivek, shareholders have held discussions to ensure that the merger will deliver satisfactory results for employees. He said the company is very welcoming to employees who wish to continue working at MergeCo, the combined entity of XL Axiata and Smartfren.
Axiata Group estimates that the merger process can be completed within the next three months and the resulting entity launched in the first half of 2025.
Vivek added that the merger will make the company a stronger and more competitive platform, as well as provide opportunities for more diverse new roles. "There will be access to interesting roles, diverse projects and new experiences for employees," he said.
Meanwhile, XL Axiata president director Dian Iswarini said that she had held a meeting with employees to discuss incentive mechanisms and bonuses to make employees feel comfortable during and after transition to MergeCo.
Separately, XL Axiata Workers Union secretary-general Henry Machsuni confirmed that a meeting with XL Axiata and Axiata Group Berhad executives had taken place on Wednesday morning. However, he could not reveal the details of what was discussed at the meeting.
Earlier, Henry said that XL Axiata employees had expressed concern over the uncertainty of their employment status amid the company's plans to merge with Smartfren. He said many employees were worried about the possibility of a termination of employment (PHK).
"We understand very well that there will be rationalization in the merger process. The merger of the two companies will definitely reduce the number of jobs," Henry said when contacted by Tempo on Monday, December 9.
Regardless of the potential impact of the merger on employees, Henry is hoping for clarity from XL Axiata's parent company, Malaysia-based Axiata Group Berhad. He said SPXL has met with Axiata Group representatives twice since the merger plan began. But so far, there has been no clarity on the projected state of the company after the merger.
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