367 Workers at PT Victory Apparel Semarang Still Fighting for Fair Severance Pay

A total of 367 workers at PT Victory Apparel Semarang are continuing their fight for fair severance pay. They are refusing to accept a settlement based on 0.5 times the provision stipulated in Government Regulation (PP) Number 35 of 2021, a derivative of the Job Creation Law. Lusiatun, Chair of the PT Victory Apparel Semarang Labour Union, revealed that 205 other workers had already accepted layoffs. She stated their average length of service was between 10 and 20 years, though most of them were not union members. Lusiatun said the 205 workers who accepted termination were only given severance pay at the 0.5 rate and did not receive other entitlements such as long-service awards. She added that the 367 union members are demanding justice in the form of full severance pay and an ex-gratia payment from the company. Lusiatun noted that the 205 workers who accepted the reduced severance were worried the foreign owner might flee without fulfilling obligations if they did not accept the offer quickly. She also claimed the Semarang City Manpower Office convinced workers that the management’s actions were in accordance with PP Number 35 of 2021 and warned that they would likely lose if they took the case to the Industrial Relations Court. Lusiatun feels the Manpower Office has not sided with the workers, appearing instead to favour the company. She added that a recent visit by a presidential adviser on labour affairs had not changed the company’s stance.