Said Iqbal Confirms No Mass Layoffs at PT Fengtay Bandung

Bandung (ANTARA) - Special Adviser to the President for Employment and Worker Welfare, Said Iqbal, has confirmed that there will be no mass layoffs (PHK) of 4,000 workers from PT Fengtay in Bandung Regency, West Java. During a visit to Bandung on Monday, Iqbal stated that this assurance was obtained after he and the Ministry of Manpower (Kemnaker) held discussions with company executives. “The result of the discussion is that the company’s explanation states it is not true that 4,000 employees have been laid off. It is true that thousands of workers have experienced a suspension of workdays, but this is done on a rotating basis,” he said. He emphasised the company’s good faith in not laying off workers, a point that will be conveyed to the President to correct circulating news reports on the issue. The company is considered to have shown a commitment to avoid layoffs, so the suspension policy is understood as a measure to maintain business continuity amidst fluctuating orders. “The company is committed to not carrying out layoffs, so the suspension measure is part of a strategy to avoid PHK,” he added. Regarding the reason for the suspension, he explained that the policy is a management strategy to maintain stability and order sustainability from global buyers connected through the company’s headquarters in Taiwan. According to him, the company stressed there is no intention to conduct layoffs, but rather to manage operations through a rotating work system during order gaps. Therefore, the term used is not furloughing workers, but a suspension of workdays. “It is more of a rotating system. In one month, 500 workers might be suspended for two days, then the next month 1,000 workers. So they take turns with their work shifts,” he said. In addition to correcting the information regarding layoffs, the government is also highlighting the provisions in the work agreement that regulate the payment of 50 percent of wages during the suspension period. According to him, this provision will be reviewed by Kemnaker together with the regional government because the affected workers receive monthly wages, and their rights must remain in accordance with statutory regulations. “The principle is that there must be no wage deductions that violate the law. This will be enforced by the government through the Ministry of Manpower and its subordinate ranks,” he said. Meanwhile, the Director of Labour Social Security at the Directorate General of Industrial Relations and Labour Social Security Development (Ditjen PHI & Jamsos) of Kemnaker, Decky Haedar Ulum, said his party would discuss the contents of the agreement with the company to ensure all provisions operate according to the rules. “If there are any violations of the rules, they will be returned to the proper provisions. There must be no wage deductions that violate the rules,” he said. He also stated that the government will continue to monitor the implementation of this policy to ensure workers’ rights are protected while maintaining the company’s business continuity.