Thousands Of Employees Of PT Sritex Have Been LAID Off, KSPI: The State Has Failed To Protect Workers

The Labor Party and KSPI took legal steps for the laid-off Sritex workers (Doc. ANTARA)

JAKARTA - The Labor Party and KSPI are ready to intervene in response to the mass dismissal of Sritex employees. They will file a Citizen's Lawsuit against the government and the Company's Leadership regarding the case.

The President of the Labor Party who is also the President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal emphasized that the termination of mass employment relations against thousands of workers of PT Sri Rejeki Isman Tbk (Sritex) due to the bankruptcy process is an illegal act and is contrary to the Manpower Act. This is as regulated in the latest Constitutional Court Decision No. 168/PUU-XXI/2023 and the current law on employment.

Said Iqbal conveyed that the reason for the mass layoffs carried out by Sritex against his workers was an illegal act.

The first reason is that the layoffs on thousands of Sritex workers do not go through a bipartite mechanism between the union and the company's management, let alone proceed to the tripartite stage with the mediator from the Manpower Service.

"If there is indeed a result of negotiations between the trade union and management, show the notule," said Said Iqbal in a written statement received by VOI, March 2.

In fact, what can be seen is that workers are asked individually to register layoffs. If it is true that this happened, it should be suspected that it was accompanied by intimidation. Workers are stupid. Because there is no clarity on what rights the workers will receive.

"Who guarantees severance pay? Is it the company or curator? And is the money there?" Iqbal questioned.

The second reason is that workers are not given the opportunity to refuse layoffs through the process in front of mediator employees if they do not agree with their rights. Workers should have room to express their disapproval of layoffs or the amount of rights received. But in reality, what happened was that the workers were invited to sing while crying.

"What drama is being played? This is not the most beautiful memory, this is the bitter memory. The President Director of Sritex does not need to cry using memory songs if there is no clarity on the rights of workers," said Said Iqbal. The labor rights in question are severance pay, service awards, THR 2025, and so on.

The third reason, where is the role of the Minister of Manpower, Deputy Minister of Manpower, and the Manpower Service? The state is absent from protecting workers. The Minister of Manpower and the Deputy Minister did not carry out their role properly. The Manpower Service did not show any involvement in this mass layoff process.

"The Minister and Deputy Minister of Manpower are only lip service, do not understand the mechanism for the layoff dispute. Even one Sritex case cannot be handled, how will it save the national industry" Iqbal criticized.

Therefore, the Labor Party urged that the Minister and Deputy Minister of Manpower be removed from his position.

The fourth reason is that the number of workers affected is not only Sritex workers, but also workers in subsidiaries and their supply chains which involve providers of raw materials, food, transportation, and other suppliers. If calculated, the affected workers can reach hundreds of thousands of people.

Based on the information we received, the number of workers in PT Sritex and all its subsidiaries is estimated to reach tens of thousands of people. If calculated more widely, the ecosystem that relies on Sritex's sustainability is much larger, because it also includes workers from raw material suppliers, food supply services, transportation, and various other suppliers. They all depend on Sritex's production activities.

So, if calculated as a whole, there is a potential for hundreds of thousands of people affected by Sritex's bankruptcy, either directly or indirectly. This situation is increasingly concerning because until now there is no clarity regarding the rights of workers who have been laid off. There is no transparency regarding the value of the rights that workers will receive, whether in accordance with the provisions of the law, or even below the standard.

The public has also not received information whether there is an official agreement between the curator and the laborers or trade unions to guarantee the payment of these rights. In fact, at this time, the company's full control of finances is in the hands of the curator. Without clear legal certainty, workers are threatened with losing their severance pay, wages and other normative rights. This is why we urge full transparency in this process.

Fifth, the auction conducted by the curator will also involve labor unions. Because the curator can sell auctions below the price. From the results of the auction, it will be known how much money was collected from the sale of the Company's assets.

"Is there an agreement with the curator? How much is the value of the labor rights? Does the asset auction involve the union? Do not let the assets be sold cheaply and the workers are left without clarity," said Iqbal.

The question is, why is the company still running, why is it bankrupt. Will it enter a new investor by buying prices below the asset price? Or may the Company leadership form a new PT? It could be that the company leadership makes new companies, countries lose taxes, lose already educated workers, workers lose pay cheap severance pay.

It is reasonable to suspect that there are groups currently playing. I don't know who played, but I suspect. Whether a government person, a minister, a businessman who collaborates with the Minister, they want to buy it at a low price.

Supposedly, as long as the auction asset has not been sold, wages should still be paid. That's what the deal is, there's certainty, as long as wages are paid.

,, workers are asked to disburse Old Age Security and Job Loss Guarantee as a substitute for their rights, even though many workers still want to fight layoffs and have not received confirmation of their rights. In fact, to disburse these rights, a certificate of service and Paklaring is needed, which has the potential to force workers to accept layoffs without a fight.

The sixth reason, it is very painful, this mass layoff was carried out ahead of the month of Ramadan, when workers desperately needed additional income to meet their family's needs. This moment is actually used to weaken the position of workers who are under pressure economically.

Seventh, workers are asked to disburse Old Age Security and Job Loss Guarantee as a substitute for their rights, even though many workers still want to fight layoffs and have not received confirmation of their rights. In fact, to disburse these rights, a certificate of service and Paklaring is needed, which has the potential to force workers to accept layoffs without a fight.

For these various reasons, the Labor Party and KSPI will take a number of strategic steps. First, open the Sritex labor advocacy post to help workers who refuse layoffs, fight for severance pay rights, holiday allowances, and other rights. Second, form a legal team to file a lawsuit against citizens or citizens lawsuit at the Central Jakarta District Court. This lawsuit will be filed against the Coordinating Minister for the Economy, the Minister of Industry, the Minister of Manpower and their deputy, the Minister of Investment, and the leadership of PT Sritex.

The Labor Party and KSPI will also hold a national action with a main point at the State Palace and the Ministry of Manpower, as well as simultaneous actions in various regions including Semarang on March 5, 2025.

"This action is our way of supporting a clean government, by showing that violations of workers must be stopped," said Iqbal.

Selain itu, Partai Buruh dan KSPI akan membentuk Satuan Tugas atau Satgas Sritex. Satgas ini bertugas menjaga aset perusahaan agar tidak dijual secara sembarang, memantau keluar-masuk, serta mencegah kerugian pekerja akibat pekerja yang diganti oleh tenaga outsourcing murah.

The Labor Party and KSPI emphasized that the state must not let go of this tragedy. Sritex workers must get their full rights, and the dirty game behind Sritex's bankruptcy must be revealed.

"As long as the assets have not been sold, the wages of workers must still be paid. This is a matter of certainty and justice," concluded Said Iqbal.