Garment factories go bankrupt

Garment factories go bankrupt

JAKARTA (JP): Nine garment companies have gone bankrupt within
the last three months, according to data from the Jakarta All-
Indonesia Worker's Union.

"This is the worst period in our history, showing the bad
garment business this year" said Franky Tan over the weekend.
Franky is deputy chairman of the garment, textile and leather
sector of the union.

Some businessmen and members of workers' union had previously
predicted that 1996 would be the worst year for the garment
industry due to the current overtime wage system and declining
orders, making it uncompetitive in international trade.

"These most unfortunate events have caused the companies'
workers to lose their jobs because the factories were forced to
dismiss them," Franky said.

He said that the plight of garment workers has been made even
worse because many other garment factories are making
rationalizations, reducing the number of their workers.

"A healthy business can move its workers to the company's
branches or other sectors instead of just firing them," Franky
said.

But in some cases, the workers do not want to work in the
branches, which are usually located out of town, because the
company does provide their families with facilities, such as
providing funds for their children's' education.

With the bankruptcy of the nine companies, there are now 171
garment companies left in the city. This number does not include
the approximately 2,000 other companies which do not have units
of workers' union yet, he said.(03)