Textile factory fires 600 workers

PURWAKARTA, West Java: A financially troubled nylon factory, PT Yusung Mayer Textile (Yumatex), has dismissed roughly 600 employees including a number of managers.

It stopped operations last week after it could not afford to purchase raw materials, whose prices have skyrocketed over the past few weeks.

Chief of the local manpower office Gumbira confirmed the news on the mass dismissal at the company which began operations in 1993, Antara reported.

According to Gumbira, the firm failed to follow official procedures in firing employees, although it had promised to give severance pay.

"They have not yet acquired a permit (to dismiss the workers) from our office," said Gumbira. (anr)