Jakarta – PT Nestle Indonesia says that it has laid off 126 workers from its Kejayan factory in Pasuruan, East Java, to carry out a business transformation in the company.
The company terminated the workers' employment on Oct. 31 after conducting a townhall meeting with the workers to explain about the transformation that aimed for better efficiency and long-term growth.
"Considering the current situation and conditions, with deep regret, several employee roles will be affected as a result of this change, in one of our factories, Kejayan, because they no longer have a role in this business transformation," Nestle management wrote in an official statement, on Nov. 14.
The management also said that it had carried out a comprehensive evaluation of market needs and demands.
Labor unions the Nestle Indonesia Kejayan Workers Union (SBNIK) and Food and Beverage Workers Union Federation (FSBMM) staged protests at Nestle Indonesia's Jakarta head office and Kejayan factory in Pasuruan on Nov. 15.
FSBMM president Dwi Haryoto said the announcement was not expected given the Kejayan factory's 35 years of operation. "It is unfortunate that management has implemented the decision in such a short time," he said.
He also said the redundancies must be voluntary, not mandatory.