12.680 Workers had been Layoffs in Two Months

Jakarta, Aktual.com – President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal revealed that as many as 12,680 workers in Indonesia have experienced layoffs (PHK) by the company during January-February, 2016.

“Until now, layoffs are still happening in the electronics industry, the automotive and motorcycle components, oil and pharmaceuticals. Already there are bargains to layoffs and early retirement,” said Said Iqbal in a press conference on the sidelines of the National Working Meeting KSPI in Jakarta, Tuesday (1/3).

Therefore, Iqbal said that is not true when the government announced layoffs that occurred just 1,377 only. According to Iqbal, the difference was due to government figures waiting for a report from the company.

“The new company reported the layoffs to the employment agency after the process is complete, including the matter of taxes and others. In contrast to our receiving direct reports from workers after they were laid off,” he said.

Iqbal said the layoffs were made by the company due to several factors. layoffs in the oil industry, triggered by a drop in oil prices thus reducing industrial workers.

However, the main cause layoffs in many industries, according to Iqbal, is a low wage policy that is currently imposed by the government led to the purchasing power of workers has declined.

“Due to declining purchasing power, workers can not buy industrial products. Workers are no longer able to buy electronic goods or motors. So it was not solely because the industry can not compete in Indonesia,” he said.

Moreover, Iqbal assess the economic policy package issued by the government to employers and industries far more in the downstream sector. Supposedly, the economic policy package issued by the government is also strengthening the upstream sector.

“For example, the government set a policy of cheap raw material prices so that the price of industrial products are not too expensive. By doing so, the existing industries in Indonesia will not compete,” he said.

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