APSN Banner

Minister plans summoning Adidas producer after thousands of workers fired

Tempo - May 15, 2023

Riani Sanusi Putri, Jakarta – The Minister of Manpower Ida Fauziyah said that she would summon the producer of Adidas footwear following reports of the unilateral dismissal of thousands of employees. She plans to have a dialogue with the producer, the supervisor, and the Development of Industrial Relations and Labor Social Security (PHI Jamsos).

"Usually we will sit together [to talk about how to] prevent workers' rights from not being fulfilled," she said at Jakarta's Pullman Hotel on Monday, May 15.

Ida did not deny that many companies – especially those engaged in the export-oriented footwear industry – as were still cutting jobs en masse. This is because there is a decline in orders from Europe and the USA. In fact, she said, there was a period of zero orders.

The situation prompted the government to issue Minister of Manpower Regulation (Permenaker) No. 5/2023 on the Adjustment of Working Time and Wages for Certain Export-Oriented Labor-Intensive Industrial Companies Affected by Changes in the Global Economy, which was put in effect on 8 March 2023.

Through the rule, the ministry allows wage cuts by labor-intensive industries, especially those that are export-oriented, in hopes it will prevent textile and textile product companies (TPT) from carrying out mass layoffs.

A number of labor unions joined in the Clean Clothes Campaign (CCC) Coalition revealed that PT Panarub Industry, the company that produces Adidas footwear, had carried out unilateral layoffs.

According to the Garteks Trade Union Federation, 1,500 workers were fired citing an economic recession. Meanwhile, SPN's data showed at least 360 members were fired between 2022 and 2023.

Emelia Yanti Siahaan, secretary general of the Indonesian Trade Union Association (GSBI), said that PT Panarub Industry has been laying off workers since the start of the pandemic and later following news of a global recession.

She said that in firing the employees, PT Panarub was also suspected of having carried out an act of intimidation. The GSBI said that PT Panarub threatened they would cut the laid-off workers' severance pay of them do not immediately sign the layoff letter within a week.

This does not adhere to Article 37 Paragraph (3) Government Regulation No. 35/2021, which stated that information regarding layoffs must be in the form of a letter of notification that is submitted legally and properly by the employer to the employees/laborers/union worker, no sooner than 14 working days prior to termination of employment.

Article 39 Paragraph (1) PP No. 35/2021 also states that workers or laborers who have received a notice of layoffs and declare they refuse, must make a rejection letter accompanied by reasons no later than seven working days after receiving the notice.

Source: https://en.tempo.co/read/1725925/minister-plans-summoning-adidas-producer-after-thousands-of-workers-fire