Sat, 24 Nov 2001

5,000 garment workers to lose jobs

JAKARTA: At least 5,000 workers of garment factories in Bogor regency might lose their jobs due to the decline of orders from Europe and the United States over the past three months.

Head of the local manpower agency, Suherdis, told Antara on Wednesday that a number of employers had reported to his office about their plan to lay off workers because of declining orders.

He said he told them that, after laying off staff, employers should pay their workers at least 85 percent of their monthly payment every month. If business improves, employers should rehire them. But if things get worse, they could ask for approval from the Ministry of Manpower to dismiss their workers.

For the past two months, there has been no overtime work at the garment factories and the workers now work shifts every other week.

The workers used to earn at least Rp 300,000 a month in overtime fees.

One of them, Marno, said that he now brings home Rp 400,000 a month - the minimum wage set by the government - compared to between Rp 700,000 and Rp 1 million, which he earned before the factory where he works began to face declining orders. --JP