MAP Group Cuts Salaries Of SOGO Et Al Employees By 50 Percent To Home 300 Employees

Illustration. (Photo: SOGO)

JAKARTA - Head of the Legal Division of the Indonesian Retail Industry Workers Union, Onny Assad, admitted that currently the workers' union under the MAP Group is upset about the threat of layoffs.

Since June, Onny said management had also cut the salaries of thousands of employees by 20 percent. In fact, from August 1 to the end of November about 300 employees were sent home in the layoff plan.

Furthermore, he said, employees who were sent home also received a salary cut of 50 percent and would take effect this November.

"Salary cuts for all employees of SOGO, Seibu and others under the MAP group, without the permission of employees or labor unions," he said, when contacted by VOI, Wednesday, November 11.

Furthermore, he said, the company management had also written to each employee to offer the availability of voluntary resignation.

"It has been given a letter, if you want to voluntarily request dismissal from the company, you will be given 1 PMTK," he said.

Onny said that the COVID-19 pandemic was sometimes used as an excuse by employers unilaterally without discussing it and the consent of employees and / or existing labor unions. In fact, the condition of the company is still able to score a net profit.

Furthermore, Onny assessed that what the management had done seemed to go beyond and violate the Manpower regulations.

"Layoffs have been planned since the entry of the foreign manpower director, because of the COVID-19 incident, COVID is used as an excuse for an opportunity to cut wages and layoffs. Which later becomes the reason for layoffs on the grounds of COVID and losses. Even though the results of the GMS that have announced the group's net profit are approximately Rp1.2 trillion, "he said.

According to Onny, even before the pandemic occurred in February, the MAP group had already laid off permanent employees and outsourced around 400 employees.

For your information, some of the leading brands managed by PT Mitra Adiperkasa Tbk (MAP) include Starbucks, Zara, Marks & Spencer, SOGO, SEIBU, Oshkosh B'Gosh, Reebok. MAP is listed on the Indonesia Stock Exchange, and on its official website claims to have more than 25,000 employees.

VOI is still trying to confirm the management of the case. Until this news was published, there was no answer from the management of MAP Group.

In the first semester of 2020, MAP recorded a net income of IDR 2.08 trillion, down from IDR 5.34 trillion in the second quarter of 2019. MAP said the decline in revenue was due to the closure of most outlets, the effect of the COVID-19 pandemic.

"Along with MAP's efforts to increase sales and reduce the level of aging stocks, our net loss was recorded at Rp. 483.1 billion in the second semester of 2020," said Ratih D. Gianda, VP Investor Relations & Corporate Communications of MAP Group, quoted from the company's disclosure on the Exchange website. Indonesian Securities on August 4, 2020.