2,000 workers of Karawang Shoes Factory hit by layoffs

INDUSTRY.co.id - Karawang - The Manpower and Transmigration Office of Karawang regency, West Java, said that 2,000 workers of PT Dean Shoes who produce shoes will be exposed to layoffs because the company is experiencing financial problems.

Head of the local Manpower and Transmigration Office Suroto in Karawang, Friday said it has obtained an official letter from the company that will do the mass layoffs.

The notification of mass layoffs was submitted by PT Dean Shoes Manager, Andry Iman M through letter numbered FIG3 / AM / 212 / VI / 2018 addressed to the Head of Manpower and Transmigration Office (Disnekertrans) Karawang In accordance with the letter, as many as 2000 of 15,000 workers PT Dean Shoes that is located in Mekarjaya Village, Purwasari District will be affected by layoffs.

The reason for the layoffs is that the factory must maintain the company's survival, thus reducing the number of employees.

According to Suroto, until the end of May 2018 there are already some companies that do layoffs. If accumulated, the number of workers affected by layoffs this year has reached 11,000 thousand people. While in 2017 recorded 29,000 workers who were laid off.

Suroto suspects that the mass layoffs are due to the company being too heavy to pay the most expensive wages in Indonesia. The company that is considered the hardest to feel the impact of high UMK Karawang is a company engaged in the clothing, leather, and textile (TSK). But there are also some companies engaged in manufacturing.