Following claims of the arbitrary termination of thousands of employees, the minister of labour, Ida Fauziyah, declared that she would summon the company that makes Adidas shoes. The producer, the boss, and the Development of Industrial Relations and Labour Social Security (PHI Jamsos) are the three people she wants to speak with.
“Usually we will sit together [to talk about how to] prevent workers’ rights from not being fulfilled,” she said.
Ida did not dispute the widespread job cuts still being made by many businesses, particularly those operating in the export-oriented footwear sector. This is due to a reduction in orders from the USA and Europe. She claimed that there had actually been a time with no orders.
The 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 was released by the government in response to the circumstance and went into effect on March 8, 2023.
The law permits salary reductions by labor-intensive industries, particularly those that are export-focused, in the hopes that it will stop textile and textile product companies (TPT) from implementing mass layoffs.
The company that manufactures Adidas footwear, PT Panarub Industry, was found to have made unilateral layoffs, according to a number of labour unions involved in the Clean Clothes Campaign (CCC) Coalition.
1,500 employees were laid off, according to the Garteks Trade Union Federation, who gave the reason as an economic downturn.
