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East Java faces more job cuts, proper severance pay urged

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Jakarta Post - April 15, 2009

Agnes S Jayakarna, Surabaya – Workers in East Java acknowledge that, due to the global economic crisis, dismissals are unavoidable but have demanded companies pay fair and proper compensation.

About 400 employees of paint producer PT Avia Aviant went on strike on Monday, protesting the dismissal of 59 of their co-workers.

"The strike is our expression of solidarity to our friends. We want the company to reemploy the workers," strike coordinator Yudhi Setiawan said, as quoted by Antara.

He added that the dismissal was never discussed with the workers union. Yudhi said the dismissed workers were given only one months salary for their working period, instead of two times the monthly salary required by law.

The workers blocked the entrance gate of the company, located in the Buduran area of Sidoarjo regency during the strike, preventing rucks from loading and unloading their goods.

Meanwhile, about one hundred employees of UD Terang Suara, PT Inkatama and CV Harita Surabaya staged a rally in front of the Surabaya Legislative building on Monday, demanding the companies give severance payment according to the Manpower Law.

The workers also urged the council and the Surabaya Manpower Office to mediate their disputes with their employers.

Chairman of the Workers Alliance Congress Syahrial Romadhon said that many employers were being unfair to dismissed workers by paying reduced severance packages.

"Most of the layoffs violate the Manpower Law. Many companies ignored the workers rights by paying them less than they should," Syahrial said.

The workers union recorded that 14,090 workers from 90 companies in 17 cities and regencies across the province have been laid off this year, as of March. Nearly 1,200 of them were from Surabaya. "Most of them were dismissed improperly. Companies blame the global downturn as the cause of their downfall," Syahrial added.

The redundant employees mostly worked in the garment, furniture, footwear and electronic utility sectors in the Surabaya, Sidoarjo, Pasuruan and Malang regencies.

The union also recorded that most of the suspended workers did not get proper compensation. Some companies paid only Rp 200,000 (about US$18) times the working period in compensation. Meanwhile, Chairman of the East Java chapter of the Indonesian Employers' Association (Apindo) Alim Markus said that the global financial crisis was influencing trade in the province.

"But I have called all companies to consider dismissal their last choice. I encourage them to find the best way-out first before, if it is needed, taking layoff process," Alim said.

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