Meeting Michelin Ban Manufacturers, Ministry Of Industry: There Is A Decline In Demand That Ends In Reducing Workers

Tire illustration (Unsplash)

JAKARTA - The Michelin tire factory, namely PT Multistrada Arah Sarana Tbk (MASA) in Cikarang, West Java, is reported to have terminated hundreds of employees.

In this regard, the Ministry of Industry (Kemenperin) claimed to have summoned the company to convey the latest conditions at the company.

During the meeting, said Ministry of Industry spokesman Febri Hendri Antoni Arif, the company said that his condition was currently experiencing a decline in demand, resulting in a decline in production.

"This forces the company to carry out efficiency, which is forced to reduce workers," said Febri in a written statement, Saturday, November 1.

Febri explained that the tire company is located in a tied area, so the production is mostly for export, with one of the destination countries being the United States (US).

For this reason, the Ministry of Industry continues to remind industry players to follow all labor mechanisms before layoffs, including consultation with trade unions, implementation of Collective Work Agreements (PKB) and fulfillment of workers' rights according to regulations.

"We encourage a tripartite dialogue between the government, companies and trade unions, so that every decision is taken fairly, measurably and prioritizing the interests of workers," he said.

Febri does not deny that there is global market pressure that affects a number of industrial segments, including the tire industry.

"However, the government remains committed to maintaining a healthy business climate, encouraging efficiency and innovation, and ensuring the sustainability of investment in Indonesia," he said.

Moreover, continued Febri, the national tire industry has an important role in the Indonesian automotive, transportation and manufacturing ecosystem.

"Therefore, strengthening this sector is part of the priority of national industrial policies," explained Febri.

To ensure the situation is conducive, the Ministry of Industry has prepared assistance steps, such as assessing industrial conditions and workforce with related parties, preparing a reskilling and upskilling program through the Industrial Education and Training Center (BDI) if needed.

In addition, the Ministry of Industry also facilitates communication between companies and workers to ensure that the process runs according to the provisions, coordinating with local governments and other agencies to ensure that there is no escalation in the field.

"We urge all parties not to speculate before the verification process is complete. The Ministry of Industry will convey further developments if it has obtained official and complete data from related parties," he added.

The news of the layoff of the Michelin tire factory was protested by the All-Indonesian Workers, Energy and Mining Union (SKEP-SPSI). Hundreds of workers raided PT Multistrada Arah Sarana Tbk in Cikarang, Bekasi, West Java, Thursday, October 30.

Citing the Bekasi SPSI page, as many as 280 people were unilaterally laid off from the factory. Chairman of SP KEP SPSI PT Multistrada Arah Sarana Tbk Guntoro said the management argued using the basis of the Job Creation Law, even though according to the Constitutional Court's decision No. 168. According to him, each layoff must be negotiated first with the union.

"Believe me, this is the struggle of all of us. We reject layoffs, reject the handover of logistics to third parties that have the potential to cause new layoffs and send a letter of protest against PKB violations (joint work agreements)," Guntoro explained.

Guntoro seemed not satisfied with the company's management statement. He emphasized that there needed to be negotiations with the union regarding the layoffs.

"We have emphasized that work calls are not in accordance with norms and violating PKB do not need to be fulfilled. These layoffs must be stopped and if the company wants to talk about efficiency, let's sit down together to discuss them openly," he said.