Deputy Manpower Minister Confirms 4,000 PT Feng Tay Workers Suspended, Not Laid Off
The Ministry of Manpower has issued an official clarification regarding the threat of mass layoffs at PT Feng Tay in Bandung Regency, West Java. Deputy Manpower Minister Afriansyah Noor confirmed that around 4,000 workers at the company have not lost their jobs but are instead undergoing a rotating suspension of working days.
This confirmation came after a ministry team conducted a direct inspection together with the West Java Provincial Manpower Office, the Bandung Regency Manpower Office, trade union representatives, and company management.
“We have checked. The issue concerning 4,000 workers is not about layoffs, but rather the company is implementing a reduction in working hours. This is being done to ease the burden on the company, which is currently experiencing a decline in demand from export destination countries,” Afriansyah said when contacted by Media Indonesia on Monday (22/6).
The impact of the decline in global demand has triggered a reduction in production activity since 17 June. As a solution, management has implemented a rotating work pattern. Based on an agreement between the company and the workers, wages during the suspension period are paid at 50 percent.
Afriansyah explained that this measure is lawful under manpower regulations as long as it is based on a mutual agreement between both parties. He stressed the importance of deliberation and consensus within the Pancasila industrial relations framework to face challenging economic conditions.
“They are being rested because there is indeed no work. The company also hopes that demand from export countries will recover soon,” he added.
The Ministry of Manpower has pledged to continue monitoring tripartite and bipartite communications to safeguard national economic stability amid global economic uncertainty. The government is committed to responding swiftly to every report related to layoff issues in order to find the best solutions for both workers and employers.
The Deputy Minister also cited that flexibility in employment relations, such as adjustments to overtime schemes or substitute holidays, is common as long as it is mutually agreed. The efficiency measures at PT Feng Tay are expected to prevent permanent layoffs in the future.