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Mass layoffs mean another 18,000 jobless

Source
Jakarta Post - March 6, 2009

Yuli Tri Suwarni, Bandung – The wave of layoffs caused by the negative impacts of the global economic crisis has increased by another 18,000 people in West Java in the first two months of this year.

West Java Manpower and Transmigration Office head Mustopa Djamaludin said most companies which had to resort to mass layoffs were export-oriented, especially to the United States and European countries, and that most of the layoffs took place around Bogor, affecting around 5,000 workers.

"Around 1,000 workers have been temporarily dismissed due to the current sluggish market," Mustopa said in Bandung on Thursday.

Mustopa said his office was working together with a number of related parties, such as the state-owned PT Jamsostek social protection scheme which had provided Rp 10 billion (US$900,000) from its Corporate Social Responsibility (CSR) funds to provide skills training and entrepreneurship programs to at least 10,000 recently unemployed people in West Java.

He added that one of the quick responses to job loss was to provide short three-hour training programs for currently needed working skills and business activities. "There are a lot of skills they (the jobless) could acquire for free, such as to become auto and cell phone repairmen and beauticians," he said.

According to Mustopa, the unemployment rate in the industrial sector is forecast to rise due to the negative impact of the global economic and financial crisis leading to declining global purchasing power.

The West Java chapter of the Indonesian Employers Association (Apindo) chairman Deddy Wijaya said at least 20 companies in the textile, garment, footwear and electronics industries in West Java are affected by the crisis. He added most of the employees subject to layoffs were contract workers, not permanent full-time workers

"There should be an practical solutions to the problems so everyone could survive the crisis, with only a few companies forced to close due to declining orders," said Deddy.

To survive, according to him, the companies must carry out various strategies including reducing working hours and cutting the salaries of managerial staff.

"We are still waiting for the government to help cut production costs, failing which the industries could face their doom," said Deddy.

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