The Coordinating Minister for Human Development and Culture (Menko PMK) Muhadjir Effendy asked the textile, garment and footwear industries not to lay off their workers. The industry is allegedly prone to layoffs due to declining production levels and export performance. Muhadjir appealed to layoffs not to be carried out until the domestic and global market situation returns to normal. "The important thing is to avoid layoffs as far as possible while waiting for market conditions, especially the global market where the product has been supplied so far, until it returns to normal," said Muhadjir after the Germas Award ceremony at the Coordinating Ministry for PMK Building, Jakarta, Tuesday (6/12/ 2022).
He advised companies to look for other options instead of laying off workers. Options that can be taken include reducing working hours, cutting working days, or making wage adjustments.
However, these options must be discussed and agreed with the workers concerned. He has also conveyed this option to employers and workers' organizations in the field, including one of the textile industries in Serang that had laid off workers.
"They already have meeting points, for example reducing working hours, cutting working days, laying off (working from home) employees, all of that is permissible as long as there is an agreement. And it really is mutually agreed between the workers and the company," he said.
Muhadjir conveyed that the steps and warnings were taken by the government to suppress unemployment when the economic situation was not yet stable.
Moreover, the textile industry is one of the industries with sluggish performance, considering that it is very dependent on export demand.
"Right now, the textile, garment and footwear market is the most sluggish. And those are all exports," he said.
"Although some are not exported, for example, like in a textile factory in Semarang, he is a garment supplier, and the garment products are also exported. So we secure that link first, the important thing is not to rush into layoffs," said Muhadjir.
Previously it was reported, the number of layoffs in West Java was close to 500,000 workers. If this is not prevented, up to 1.5 million workers will be laid off.
Therefore, this problem needs to be resolved. The handling of layoffs needs to be carried out by all parties in a connected manner in the midst of global economic and political uncertainty.
The government urges companies to prepare clear projections for future targets. Layoff decisions for workers must be the last resort used by employers. "The layoffs are close to 500,000 and if there is no immediate control, layoffs could reach 1.5 million, this must be anticipated and handled," said Muhadjir some time ago.