Over 16,000 laid off since January
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)