A Wave Of LAYOFFS OCCURRED In The Labor Intensive Industry, The Ministry Of Manpower Expressed The Cause

JAKARTA - Waves of layoffs (PHKs) are currently occurring in labor-intensive export-oriented industries. One of the reasons is because of the impact of the COVID-19 pandemic that is still being felt, to global geopolitical issues. The Director General of Industrial Relations and Labor Social Security (PHI and Social Security) of the Ministry of Manpower (Kemnaker) Indah Anggoro Putri revealed that her party has coordinated with cross-ministerial/institutional, employment agencies, as well as related partners to monitor the development of layoff issues in Indonesia. From the results of coordination, Indah said, it was found that layoffs have occurred in several sectors. However, all parties have made efforts to avoid and seek layoffs as a last resort for industrial relations. "We have received some information related to the number of layoffs, especially in the labor-intensive industrial sector, export-oriented works such as garment, textile, and footwear," he said, in an official statement, Wednesday, November 2. However, Indah said, his party still had to re-check or cross-check related to the number of employees affected by layoffs. "However, we still have to cross-check this information and data from other Ministries/Institutions, including the Department of Trade, the Department of Industry, and the Manpower Office in each province and district/city," he said. The cause of Putri layoffs reveals a number of reasons for layoffs at some of these times is the impact of the COVID-19 pandemic which is still being felt by labor-intensive industries. "Then, business transformations in the digitalization era to global geopoliticals that have an impact on weakening purchasing power in a number of Indonesian product export destinations," he said.

In order to prevent the increasing number of layoffs and industrial relations disputes, said Indah, the Ministry of Manpower encourages all parties to prioritize bipartite social dialogue. "Let's address the issue of layoffs in a balanced manner by continuing to prioritize dialogue with stakeholders, so that layoffs become the last resort in the event of business chaos. The Ministry of Manpower together with all Manpower Offices in the province, regencies/cities will always be ready to assist in finding the best solution," she said. Furthermore, Indah explained that this dialogue aims to find common ground on obstacles at the company level that will have an impact on layoffs and industrial relations disputes. "The spirit of deliberation and consensus we believe can overcome constraints/challes at each company, and for that the Ministry of Manpower and Labor Services throughout Indonesia are ready to assist the achievement of these consensus," she explained. Indah said, her party also encourages Mediators of Industrial Relations in the Ministry of Manpower and throughout the region to continue to provide assistance to employers and workers, to discuss layoff prevention options; as well as coordinate with Manpower Supervisors regarding such prevention efforts. "We also hope that the Manpower Offices can continue to monitor labor conditions in their respective regions and report them to the Ministry of Manpower," he said.