JAKARTA - Special Advisor to the President for Employment and Labor Welfare Said Iqbal said the government has taken steps to mitigate the wave of layoffs (PHK) in the labor-intensive sector through a reduction in the price of non-subsidized industrial gas.
Said Iqbal said this step was taken so that labor-intensive sectors such as the ceramic, granite, and textile industries could remain competitive and be able to maintain employment.
"The reduction in industrial gas prices is one of the government's concrete steps to prevent waves of layoffs. With more competitive production costs, companies have room to retain their workers," said Said Iqbal as quoted by ANTARA, Monday, June 29.
This follows a report by the General Chairman of the Indonesian Confederation of Trade Unions (KSPSI) Andi Gani Nena Wea on Tuesday (23/6) which said there was a potential for layoffs of more than 50 thousand people at one of the largest ceramic factories in Bekasi, West Java.
In addition to the ceramics industry, Said Iqbal said the government together with the trade union/workers also carried out mitigation to prevent the relocation of the production of two automotive component companies, PT JAI Pasuruan and PT SAI Mojokerto, East Java, which are part of the Yazaki Group.
He said, through dialogue between management and labor unions, the plan to move about 50 percent of production lines to Vietnam was successfully suppressed to only about three to five production lines.
"Based on the company's business plan until 2030, the reduction of employees will be carried out naturally through the non-extension of some expired work contracts, not through mass layoffs," he said.
Said Iqbal said his party was also active in ensuring that the payment of the rights of workers who were laid off could be carried out properly in accordance with the applicable regulations.
"We chose to go directly to the field to mitigate so that layoffs can be prevented. Even if layoffs cannot be avoided, workers' rights must be ensured to be paid in accordance with the provisions," said Said Iqbal.
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