Over 16,000 laid off since January

JAKARTA (JP): The city office of the Ministry of Manpower has approved the laying off of 16,481 workers from 98 companies since January, and the number is likely to continue rising as the recession deepens.

S. Sianturi, head of the office, said the administration has done all it can to minimize the number of layoffs, but most companies were having a hard time keeping workers on.

"We're sorry about the situation but many of these companies found that business was virtually dead," Sianturi said.

Not all layoffs are reported to the administration although by regulation, a company must have its approval first.

Sianturi said most of the affected employees had worked for companies in the trading, construction, garment and textile, electronic, food and beverage, and pharmaceutical sectors.

He predicted that more companies would be seeking to lay off workers during the economic crisis.

"We have been appealing to companies first introduce cost- cutting and efficiency measures. Laying off workers should be a last option," he said, citing cuts in overtime and alternating work shifts as examples of other options.

Jakarta Legal Aid Institute (LBH) is not impressed by the administration's attempts to keeping job losses to a minimum.

LBH Jakarta is currently handling 29 cases in court for laid off workers. And it is representing 1,194 workers who have lost their jobs since October.

"The administration is doing little to help laid off workers. There's a tendency among officials to approve applications to lay off workers without a thorough investigation," Surya Tjandra, an LBH staff member, said.

Christina Rini Yuliarti, another staffer, noted that many laid off workers gave up easily without bothering to contest the decision at the ministry or in court.

"Workers don't feel that the government is protecting them. It always uses the same argument every time it approves mass layoffs. It's either layoff or simply close down the business."

But the city administration has been busy creating jobs for displaced workers, both skilled and unskilled.

It has allocated Rp 8 billion from the budget for the purpose of creating labor-intensive projects to absorb people who recently lost their jobs

The first tasks are canal clearing, which absorbs many unemployed construction workers.

Sianturi said the administration is drafting a program to channel displaced white-collar workers to work at cooperatives.

"Cooperatives could benefit from the services of these skilled workers," he said.

The administration is also preparing projects to provide jobs for displaced women workers, he said, citing home industries such as tailoring, food preparation and handicraft among the potentials.

He said Rp 1.6 billion in funds have been set aside for the women's projects. (ind/edt)