The Job Creation Law Is Deemed Not To Guarantee Fate, Giant Workers Union Hopes To Still Work At Other Hero Stores, IKEA And Guardian?

IKEA booth at Alam Sutera. (Photo: Doc. BOSS)

JAKARTA - The Association of Indonesian Workers Unions (ASPEK Indonesia) as the national level federation of unions that houses Giant workers, expressed their concern over the management decision of PT Hero Supermarket Tbk (HERO) to close all Giant outlets in July. The business conditions and the impact of the pandemic have made this retail "giant" in Indonesia have to permanently close its business.

"We are concerned because more and more layoffs (layoffs) are occurring in Indonesia. More and more Indonesians are losing their jobs. However, in terms of industrial relations, ASPEK Indonesia hopes that the management of PT Hero Supermarket Tbk will maximize the bipartite mechanism in a transparent manner by involving PT Hero Supermarket Workers Union affiliated to ASPEK Indonesia, "Mirah said in a written statement, Thursday, May 27.

Besides that, continued Mirah, ASPEK Indonesia hopes that there will still be opportunities to be able to continue to employ Giant workers in other PT Hero Supermarket business units. Mirah Sumirat also reminded the management of PT Hero Supermarket to continue to respect the Collective Labor Agreement (PKB) which has been agreed upon with the Hero Supermarket Workers Union and not to use the Job Creation Law.

"Because the Job Creation Act actually only regulates the minimum provisions. Meanwhile, PKB can provide better than the Law and bind the parties, both management and workers. In addition, management needs to give more appreciation to its workers who have worked even dozens of years. decades of serving at PT Hero Supermarket, "explained Mirah.

Mirah Sumirat also emphasized that the increasing number of companies carrying out mass layoffs need to be the attention of the Government, in this case, the Ministry of Manpower. The stimulus that the government has given to employers has been ineffective in being able to save the business world or to save the fate of workers.

"The Omnibus Law on the Employment Creation Law is proven to be unable to provide guaranteed job security, guaranteed wage certainty, and certainty in social security. So that the government needs to cancel the existing labor cluster in the Job Creation Law. If not, then a tsunami of prolonged layoffs will occur. And This of course will also have an impact on post-pandemic economic recovery efforts and on efforts to create welfare for all Indonesian people, "concluded Mirah Sumirat.

Severance pay does not follow the provisions of the Job Creation Law

Head of Corporate and Consumer Affairs of PT Hero Supermarket Tbk, Diky Risbianto, said that the company has communicated with employees regarding the company's decision to close all Giant outlets. Diky said, his party also treats all parties fairly and respectfully.

"As an expression of our gratitude for the support and hard work of the affected employees, we will provide compensation above the amount recommended in the Job Creation Law to facilitate their transition period," he said when contacted by VOI, Thursday, May 27.

Furthermore, Diky said the closure of the five Giant outlets was because the company wanted to convert to IKEA and was considering converting a number of outlets into Hero Supermarkets, and was negotiating a number of outlets to transfer ownership to third parties.

"With a heavy heart, all other Giant outlets in Indonesia will stop operating at the end of July 2021," he said.