Texmaco hit by protests over layoffs, suspensions<\/p>\n
The Jakarta Post, Jakarta\/Semarang<\/p>\n
Thousands of workers of PT Texmaco Group, the country's biggest
\ntextile manufacturer, held separate demonstrations in three
\ncities on Wednesday, demanding that the government save the giant
\ncompany from imminent bankruptcy.<\/p>\n
The workers also complained about being laid off in January
\nthis year, and urged the government to help solve their problems.<\/p>\n
In Jakarta, more than 1,000 Texmaco workers flocked to the
\nIndonesian Bank Restructuring Agency (IBRA) building, demanding
\nit help lift their company out of financial trouble.<\/p>\n
Texmaco owes a total of US$3.4 billion to IBRA, according to
\nBloomberg news agency. It also owes at least US$1 billion to
\nforeign bondholders, a debt that has not been restructured,
\nincluding about $700 million owed by its main textile unit, PT
\nPolysindo Eka Perkasa.<\/p>\n
The ongoing financial trouble has forced the company to
\nsuspend and lay off thousands of its workers.<\/p>\n
In a hearing with the House of Representatives last June,
\nTexmaco Group's owner Marimutu Sinivasan said that his company
\nneeded at least US$25 million in fresh working capital to survive
\nits financial troubles.<\/p>\n
However, the central government and IBRA were reluctant to
\ninject any new funds into Texmaco, putting the giant company
\nunder disarray.<\/p>\n
Texmaco's financial turmoil was partly blamed in the death of
\nSinivasan's brother, Marimutu Manimaren, who committed suicide on
\nAug. 5 in Jakarta.<\/p>\n
In the East Java town of Malang, more than 2,000 workers of PT
\nWastra Indah Batu, a subsidiary of PT Texmaco Group, held a
\nsimilar rally in front of the mayoralty administration office.<\/p>\n
They called on the government to inject fresh funds in order
\nfor their company to avert bankruptcy, Antara reported.<\/p>\n
"We want the government to solve PT Texmaco's problems
\nimmediately, so that there would not be more massive layoffs in
\nthe company," said a protester in Malang.<\/p>\n
PT Wastra Indah recently suspended the contracts of at least
\n1,000 out of its 2,340 workers in Malang due to the financial
\nproblems with its holding company, Texmaco Group, leaving their
\nfate uncertain.<\/p>\n
However, the suspended workers are still paid 75 percent of
\ntheir monthly basic salaries.<\/p>\n
Also on Wednesday, more than 3,000 other workers with Texmaco
\nrallied at the Central Java capital of Semarang in a protest
\nagainst being laid off by the company.<\/p>\n
Grouped in the Communication Forum for the Rescue of Texmaco
\nWorkers (FKPKT), they conveyed their grievances at the provincial
\nlegislative council.<\/p>\n
It was the second time the group staged a protest in Semarang
\nin the past week.<\/p>\n
The forum said PT Texmaco had suspended 2,550 workers and laid
\noff 1,540 others in Central Java during the January to September
\nperiod.<\/p>\n
From 1998 to 2003, the company suspended about 11,000 out of
\nits 24,000 workers in total.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-hit-by-protests-over-layoffs-suspensions-1447893297",
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"sponsor": "Okusi Associates",
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