Minister assures government intervention in Central Java layoff crisis

Manpower Minister 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 related parties. “Regarding the news of layoffs or anything else, I often say that it is a long process. So, if there is a company’s plan to carry out layoffs, we 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 the issue of planned layoffs of hundreds of workers at the garment company PT Victory Apparel Indonesia, which operates in Semarang, Central Java. Yassierli said the Ministry of Manpower continues to coordinate closely with the President’s Special Advisor for Manpower and Workers’ Welfare, Said Iqbal, in monitoring various labour issues developing in the regions. According to him, every field visit carried out by Said Iqbal involves elements of the Ministry of Manpower so that the government can obtain information directly while accelerating the handling of various labour problems. He explained that the government first verifies and clarifies any information regarding layoff plans to ensure the accuracy of the data and understand the causes behind the company’s condition. If the verification results show the information is correct, the government will examine the causes and seek various solutions so that termination of employment does not become the last resort for the company concerned. Yassierli stressed that information about layoff plans circulating in the community is not necessarily a final decision because there is still room for dialogue and resolution through applicable mechanisms. The government encourages companies and labour unions to prioritise deliberation and mediation to find the best solution before a decision on termination of employment is actually made by each party. According to Yassierli, each layoff case has different causes, so the handling must be carried out carefully by considering the company’s condition and the interests of the directly affected workers. If layoffs are ultimately unavoidable, the government ensures that all workers’ rights are fulfilled in accordance with the provisions of the applicable laws and regulations without reducing protection for workers. In addition to ensuring the fulfilment of workers’ rights, the government also oversees the implementation of the Job Loss Insurance programme so that affected workers continue to receive benefits during the transition period to the next job. “Regarding the Job Loss Insurance, we oversee it. For six months after being laid off, they still receive 60 percent of their salary. Then we open access for them to work again, information and training packages,” said the Manpower Minister. Previously, the President’s Special Advisor for Manpower 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 it requires government policy intervention, 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 industry companies in Central Java Province that could affect nearly 1,500 workers. The information was received by Said Iqbal from the Central Java Labour Union Management, based on initial reports, that PT Victoria Apparel in Semarang City, a company with Chinese investors, is suspected of planning to lay off around 800 workers. Meanwhile, PT Samwon in Jepara Regency, a company with South Korean investors, is reported to be planning to lay off around 670 workers. For this reason, Said Iqbal stressed that he would immediately report the development to the Head of the Layoff Task Force, Minister of State Secretary Prasetyo Hadi. The report will also be forwarded to Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad and Deputy Speaker of the House of Representatives Cucun Ahmad Syamsurijal as part of the coordination for handling the potential layoffs.