Thousands of textile workers fired

Thousands of textile workers fired

About more 70,000 workers have been laid off since the government hiked fuel prices recently, Indonesian Textile Association chairman Benny Sutrisno said on Monday.

"The workers are from Bandung in West Java and Surakarta in Central Java. I expect the number to reach 100,000 by the end of this year," said Benny.

"In total, some 500,000 will have to be laid off because fuel comprises 30 percent of production costs, not to mention other costs."

Benny said that some 300,000 workers were from medium and large industries while the remaining 200,000 workers were from small-size industries.

"Laying off workers is a tough decision to make because of the strong relations with workers and the high severance pay.

"A worker who has worked with a company for nine years, for example, is entitled to get 26 to 29 months salary as severance pay." -- Antara