Jakarta – Merza Fachys, President Director of Smartfren, provided a breath of fresh air for his employees amid the merger process with XL Axiata. He emphasized that the employment status of employees will remain the same after merging into the new entity, XLSmart. “We will follow the applicable labor regulations,” said Merza.
Furthermore, Merza explained that XLSmart will implement two main principles in the employee integration process, namely the lift and shift policy and the no loss policy. The no loss principle guarantees that no employee will be disadvantaged in this merger process. “What does no loss mean? “No one will be disadvantaged,” Merza emphasized.
Meanwhile, the lift and shift principle means that all Smartfren employees will be lifted and brought to the new entity XLSmart. “So no one will be disadvantaged, no one will be demoted, everyone will be brought along,” added Merza.
When asked if the employment status will remain the same? Merza answered with a nod and a smile, as if to affirm that the employees’ tenure would still be recognized and counted just as before.
It was previously reported that both XL Axiata and Smartfren assured that they would not rationalize employees when the two merged. Even employees are promised bonuses when joining XLSmart.
“We have agreed, both shareholders, that all employees will join PT XLSmart. So there are no plans for rationalization,” said Merza Fachys, President Director of Smartfren, at a corporate activity update press conference in Jakarta last Thursday (12/12).
Merza assured that employees would have many new opportunities when they become employees at XLSmart. Therefore, he invites all employees to join.
“All employees will be placed, of course, new opportunities will be opened to channel all their competencies. “This is what both parties have agreed upon,” he said.
Meanwhile, Smartfren CEO Andrijanto Muljono revealed that the shareholders have approved the lift and shift policy and no loss policy. Therefore, XL Axiata will implement two HRD systems.
“Of course, there will be differences in the compensation systems. Well, with the implementation of leave and shift, we will move towards harmonization where the best will become the benchmark. If there is something good from Smartfren or from XL, it will become the reference that will be used. Well, this is certainly very beneficial for employees who join this company,” explained Andrijanto.
With the no loss policy, continued the CEO of Smartfren, XL Smart will provide employee guarantees. One of the promises is a bonus.
“There is a joining bonus. So one day after the employee signs, they will immediately receive the joining bonus. Then, if they contribute well with good performance and meet the KPIs, by the end of 2025, there will be another performance bonus that is twice the amount of the normal performance bonus that applies. And so on,” explained Andrijanto.
When there is duplication or redundancy during the merger, XL Smart will offer a much higher amount than the government regulations.
“This is a commitment from the shareholders to guarantee the rights of employees and even provide more than what is required,” concluded Andrijanto.
Smartfren Boss Reveals Employee Tenure Status After Merger
