Minister assures government intervention in Central Java layoff crisis
Jakarta (ANTARA) – Minister of Manpower Yassierli has assured that the government is present to handle the issue of planned layoffs at garment companies operating in Central Java through coordination, verification and assistance to all parties involved.
“Regarding layoff news or anything else, I often say that it is a long process. So, for instance, a company has only just announced a plan to carry out layoffs. We then try to verify and clarify whether the issue is true or not,” Yassierli said in Jakarta on Tuesday.
The statement was made in response to reports of planned layoffs affecting hundreds of workers at PT Victory Apparel Indonesia, a garment company operating in Semarang, Central Java.
Yassierli said the Ministry of Manpower continues to maintain close coordination with the President’s Special Advisor on Employment and Workers’ Welfare, Said Iqbal, in monitoring various labour issues developing across the regions.
According to him, every field visit conducted by Said Iqbal also involves officials from the Ministry of Manpower, allowing the government to obtain information first-hand while accelerating the handling of various employment problems.
He explained that the government first carries out verification and clarification of any information about layoff plans to ensure the accuracy of the data and to understand the underlying causes of the company’s situation.
If the verification shows the information to be true, the government will study the causes and pursue various solutions so that layoffs do not become the last resort for the company concerned.
Yassierli stressed that information circulating in public about layoff plans does not necessarily constitute a final decision, as there is still room for dialogue and resolution through the applicable mechanisms.
The government encourages companies and trade unions to prioritise deliberation and mediation to find the best solution before a layoff decision is actually finalised by each of the parties involved.
According to Yassierli, every layoff case has different causes, so it must be handled carefully, taking into account the company’s condition as well as the interests of the workers directly affected.
If layoffs ultimately cannot be avoided, the government ensures that all workers’ rights are fulfilled in accordance with prevailing laws and regulations without reducing protection for the workforce.
Beyond ensuring workers’ rights are met, the government is also overseeing the implementation of the Job Loss Insurance programme so that affected workers continue to receive benefits during the transition period towards their next job.
“Regarding Job Loss Insurance, we monitor it. For six months after being laid off, workers still receive 60 per cent of their salary. Then we open up access to return to work, provide information and training packages,” the Manpower Minister said.
Previously, the President’s Special Advisor on Employment and Workers’ Welfare, Said Iqbal, emphasised the importance of swift action so that thousands of garment industry workers in Central Java do not lose their jobs and companies can maintain their operations.
“If the company can still be saved, then it must be saved. If government policy intervention is needed, the state must be present,” Said Iqbal said in Jakarta on Wednesday (22/7).
Said Iqbal revealed the potential for a wave of layoffs at two garment and textile companies in Central Java Province, which could affect nearly 1,500 workers.
He received this information from the Central Java Workers’ Union leadership. According to preliminary reports, PT Victoria Apparel in Semarang City, a company with Chinese investors, is suspected of potentially laying off around 800 workers.
Meanwhile, PT Samwon in Jepara Regency, a company with South Korean investors, is reported to be planning layoffs affecting around 670 workers.
To that end, Said Iqbal stressed that he would immediately report these developments to the Head of the Layoffs Task Force, Minister of State Secretary Prasetyo Hadi. The report will also be copied to Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad and Deputy Speaker Cucun Ahmad Syamsurijal as part of coordination in handling the potential layoffs.