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Article

5 Giu 2023

Damiana Cut Emeria, CNBC Indonesia

Indonesia: Nine factories announce mass layoffs, amid reduced or non-existent buyer orders

See all tags Allegations
Read more

"Danger Warning, 9 Factories Ready for Mass Layoffs", 5 June 2023

The wave of layoffs (layoffs) is still not over. Currently, 9 factories are reportedly in the process of cutting their workforce, starting with laying off employees.

President of the Confederation of Nusantara Trade Unions (KSPN) Ristadi revealed, the 9 factories are:

Location: Central Java

  1. Duniatex: 3000s of workers laid off in the direction of layoffs
    2. Agungtex Group: 2000s workers laid off in the direction of layoffs
    3. PT Kabana efficiency laid off the direction of layoffs of 1200 workers
    4. PT Pismatex went bankrupt in the process of resolving layoffs of 1,700 workers
    5. PT Sae Aparel laid off thousands due to partial relocation.

Location: West Java

  1. PT Pulaumas laid off to lay off 800 workers
    2. PT Adetex 500 workers laid off the layoff process.

Hotel Area: Banten

  1. PT Nikomas phased layoffs of thousands of workers
    2. PT Chingluh 2000s workers laid off.

The data, said Ristadi, could be larger because it only includes data on companies that have KSPN member unions. He gave an example, the layoffs carried out by PT Panarub and PT Tuntex around a total of 3,000 workers in Tangerang, were not included in the KSPN data because they were not members...

"We have lawyers who will accompany fellow workers to Industrial Relations. But yes, the process is tough. For example, the factory in Pekalongan, went bankrupt, as a result the severance pay is not yet clear," he said.

If the process is tough and indeed it is found that the company is unable to meet the severance provisions for layoffs, said Ristadi, in the end workers accept according to the results of negotiations mediated by KSPN. However, there are also those who persist in filing objections to the court...

"Currently, the condition of the textile industry, garments, and shoes is indeed severe... the order[s are] reduced or non-existent. Domestic ones are also eroded because of imported products," he said.

"What's worse is indeed the textile industry, including garments...the [shoe factories] still have orders from some international brands, "added Ristadi.

In addition, said Ristadi, layoffs in several labor-intensive industrial center locations also occurred not because factories closed or permanently cut their capacity.

But because it relocated its factory to a new, more efficient location.

"Because the brand or buyer will pay the same. The factory must try to find ways to be cost efficient, or profitable, "concluded Ristadi.

[Translation via Google Translate]

Part of the following timelines

Global: Garment workers face mass layoffs, suspended employment & reduced working hours as suppliers report reduced & cancelled orders from brands amid cost-of-living crisis

Indonesia: Multiple garment factories lay off workers amid reduced or non-existent buyer orders; incl. co. responses