Indonesian Political, Business & Finance News

Management Absent, Mediation on Garment Factory Workers' Severance in Sleman Fails

| Source: DETIK_JOGJA Translated from Indonesian | Legal
Management Absent, Mediation on Garment Factory Workers' Severance in Sleman Fails
Image: DETIK_JOGJA

Attempts at mediation between workers and the management of PT Mataram Tunggal Garment (MTG) have once again reached a deadlock. The company side failed to attend the meeting facilitated by the Sleman Labour Department (Disnaker) today.

The scheduled deliberation at the Disnaker office did not proceed as not a single management representative was present. However, in the previous meeting at the Sleman DPRD on Friday (24/4), the company had agreed to send five representatives with decision-making authority regarding severance pay.

Chair of the Advocacy Division of the DPD KSPSI DIY, Waljito, views the company’s absence as a sign of disrespect towards the government-facilitated process and the DPRD.

“We are disappointed because the DPRD had previously recommended that the company send five people to attend today’s deliberation,” Waljito told reporters on Tuesday (28/4/2026).

He considers the unexcused absence as a reflection of non-compliance with state institutions.

“The Labour Department invited both parties, but once again they did not attend without reason. This is a form of harassment against the institution. They do not respect the DPRD or the government,” he emphasised.

Waljito revealed that this is the fourth time the PT MTG management has failed to honour mediation invitations. Out of several scheduled agendas, the company only attended once, for clarification on 1 April 2026.

Subsequently, three tripartite mediation sessions on 8 April, 17 April, and 24 April were again boycotted by the management.

In their demands, the workers remain firm on the Collective Work Agreement (PKB), namely payment of severance at twice the stipulated amount. According to Waljito, the company’s excuse of only being able to pay 0.5 times the severance due to force majeure from a fire cannot be accepted.

“According to PKB rules, severance in such conditions must be twice the provision. They cite the fire and force majeure, so they only offer 0.5 times,” he said.

The PT MTG workers plan to complain to the Yogyakarta Governor and the DIY DPRD.

“Yes, going forward we will appeal to higher authorities. The DIY Governor and the Provincial DIY DPRD,” he stated.

Contacted separately, the Head of Sleman Disnaker, Epiphana Kristiyani, stated that her office will issue a written recommendation as follow-up since the mediation did not yield an agreement.

“The mediation did not reach an agreement so we will issue a recommendation. If not agreed, it proceeds to the PHI. But if agreed, we will make an agreement again to implement the joint agreement,” she explained.

She estimated that the recommendation will be issued around 10 days after the last mediation. Subsequently, each party will have 10 working days to submit written responses.

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