TEMPO.CO, Jakarta - The threat of mass layoffs is increasingly haunting labor-intensive industries. Thousands of workers of textile, garment and footwear industries have lost their jobs since early this year. Data from several business associations shows that as of October, 114,649 employees were laid off. They constituted 1.83 percent of the total workforce of national textile, garment and footwear industries.
What raises fear is the projection of the Indonesian Textile Association, the Indonesian Footwear Association and the Korean Garment Association, which sets the potential to lay off 1.05 million people at the end of the year or 16.8 percent of the entire labor-intensive industrial workforce. It means that the unemployment rate will be higher and difficult to reverse amid the uncertain economic condition.
The wave of layoffs is a consequence from the declining performance of labor-intensive industries. Exports are sluggish as demand from foreign countries is decreasing due to recession. At home, textile and footwear demands should be able to cover the export slump. However, there is another problem, which is the influx of cheaper imported products. Consequently, local garments, shoes and textile products are less competitive in their own country.
Why is there no anticipation? Or why has the anticipation failed to curb the wave of layoffs? Why do government’s figures differ from those of business associations?
The manpower ministry only records 10,000 workers lost their jobs, while business associations say the number is more than 100,000. Is there any attempt to cover up the real situation? It is because the layoff storm also arises as a result of the opening of importation, a policy that also hurt domestic products.
Baca Juga:
Apart from the layoffs, we also report the chaotic program of the migration of analog to digital television broadcasting. Major television business groups, including Media Nusantara Citra or MNC, reject this program and plan to sue the government. How do they maneuver to defy the analog-digital TV migration? Enjoy reading our stories.
Fery Firmansyah
Main Editor
Who is Capable of Curbing Layoffs?
Sluggish exports have caused a storm of layoffs in labor-intensive industries. Why are government and business data different?
Imported Textile Products Flood the Market
There is a policy that allows imports, especially for textiles, which makes domestic products suffer. How can this happen?
How Workers See the Wave of Layoffs
Workers’ unions are against the wave of layoffs. They view it from the perspective of wage negotiations.
OPINION
The Layoff Storm is Imminent
What should the government do to prevent the storm of layoffs?
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