Unable To Pay Employee Salaries, 25 Companies In East Java Apply For Suspension Of UMK

SURABAYA - The Department of Manpower and Transmigration (Disnakertrans) of East Java noted that there were 25 companies in its area, applying for the suspension of the City/Regency Minimum Wage (UMK). This suspension was carried out because the company had not been able to afford the salaries of employees according to the 2022 UMK that had been set by the East Java Provincial Government.

"So far, there are 25 companies that have applied for the suspension of UMK. Most of them are from the ring one area of East Java," said Head of the East Java Manpower and Transmigration Office, Himawan Estu Bagijo, confirmed on Monday, January 17.

Himawan detailed 25 companies spread out in the ring one area, namely two companies each in Surabaya City, Gresik Regency, and eight companies in Sidoarjo. Then nine companies in Pasuruan, three in Mojokerto, and one company in Malang.

"On average, the companies that apply for the suspension of the UMK are engaged in textiles, private clinics, printing, construction and the footwear industry," he said.

Himawan said the reason for the company to apply for a suspension was because the company's capitalization was not enough to pay the minimum wage.

If the UMK decision is implemented, then the company that proposes the suspension will be forced to reduce its workforce and will disrupt production.

"From the application for the suspension, we are still waiting for a decision from the Governor of East Java," he said.

In the future, said Himawan, his party will verify the data on the application for the suspension of the UMK in accordance with the facts at the company.

"Later we will score the validity of the information and real conditions, and later the Governor will consider it," he said.