100,000 textile workers may lose jobs in 2002<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Some 100,000 textile workers may lose their jobs next year due
\nto a combination of the global economic slump and unfavorable
\ndomestic conditions, according to a top industry executive.<\/p>\n
\"If the (global and domestic) situation keeps worsening, it is
\npossible that the workforce will be cut by up to 100,000,\" Benny
\nSutrisno, chairman of the Indonesian Textile Association (API),
\nsaid on the sidelines of an industry discussion on Tuesday.<\/p>\n
He said that job cuts would be inevitable due to sluggish
\ndemand caused by the world recession and as a cost-saving measure
\namid plans to raise fuel and electricity prices, and shipping
\ncosts.<\/p>\n
Workers' salaries account for about 12 percent of the
\nindustry's production costs, he added.<\/p>\n
Citing latest reports, Benny said that about 5,200 workers in
\nthe industry had been laid off this year, but he suspected that
\nmany other employees had been suspended to minimize costs.<\/p>\n
The textile industry employs about 1.2 million people, mainly
\nin Bandung (West Java), Tegal, Pekalongan, Surakarta (Central
\nJava), Mojokerto (East Java) and Bali. Of the total workers,
\n600,000 people work in textile companies in Bandung.<\/p>\n
The global economy slowdown, exacerbated by the Sept. 11
\nattacks against the U.S., has caused the country's textile orders
\nto drop significantly throughout the year.<\/p>\n
The association has said that because of the global slowdown,
\n2001 textile exports would likely fall by 25 percent to US$6.15
\nbillion in value from $8.2 billion last year.<\/p>\n
The export volume is also expected to drop to 1.5 million tons
\nthis year from 1.7 million tons in 2000, it said.<\/p>\n
It also forecast that 2002 textile exports would fall by 20
\npercent to a value of $4.96 billion, while volume would decrease
\nby 10 percent to 1.35 million tons.<\/p>\n
Meanwhile, Minister of Manpower and Transmigration Jacob Nuwa
\nWea said that the government was planning measures to try to
\navoid the massive layoffs predicted by API.<\/p>\n
\"It's still an estimation ... we'll do our best to help avoid
\nlay offs in the textile industry,\" he told The Jakarta Post.<\/p>\n
But he did not specify the action to be taken.<\/p>\n
Jacob urged textile companies to take several steps to avoid
\njob cuts, including reducing work hours and stopping kickbacks to
\ngovernment officials.<\/p>\n
Workers should also refrain from doing anything to worsen the
\nsituation, such as staging strikes to demand higher pay, he
\nadded.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/100000-textile-workers-may-lose-jobs-in-2002-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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