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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Ady TD Achmad
There are many ways of handling the various conflicts that arise within the realm of industrial relations, including layoffs. However, all of the relevant stakeholders should be aware that layoffs should be avoided as far as possible and only utilized as a last resort.
In essence, layoffs have become the least favorable option within the realms of industrial relations. Unfortunately though, economic fluctuations often force businesses into layoffs when the unpredicted occurs.
Commenting to this issue, Said Iqbal, President of the Indonesian Workers Union Confederation (KSPI), outlined seven reasons for layoffs that workers need to be aware of. Firstly, according to Iqbal, a layoff usually happens when a business terminates its Indonesian operations.
The recent case of PT Ford Motor Indonesia is a classic example of this kind of layoff. As is well known, this iconic car producer recently decided to cease its operations in Indonesia, and has also, as a result, terminated the employment of all of its workers in this country. This has also been the case at the PT Panasonic Lighting plant, which is located in Cikarang in Bekasi. This factory recently closed certain of its division, stopping just short of total shutdown.
Layoffs can also happen when companies decide to downsize or restructure their operations. When either of these measures is undertaken, companies restructure themselves or merge with other companies instead of shutting down their businesses. Companies often decide to terminate the employment of workers from unproductive divisions during such downsizing or restructuring operations.
Layoffs can also occur when employees decide to resign their positions of their own volition. Furthermore, according to several court rulings, the absence of a worker for a number of consecutive days without any proper excuse being given can also be categorized as resignation.
A layoff can also be supported by a decision (penetapan) or ruling (putusan) issued by the Industrial Relations Court. This usually happens when judges grant a company’s request to terminate the employment of their workers while satisfying the provisions set out under the Labor Law.
Layoffs can also take place when an employee reaches retirement age, which is currently set at 56 years of age. Moreover, companies can also offer early retirement to their workers, such as is the case at the PT Mitsubishi (KRM) plant, which is situated in the East Jakarta district of Pulogadung.
Another reason for layoffs is the expiration of an employment contract, as in the case of employees who are working under temporary contracts or who are being outsourced. These types of layoffs are usually determined by a company’s productive capacity. When market demand is high, companies will boost their production output by taking on additional workers. Conversely, when market demand slows and production levels drop, the employment contracts of these temporary workers are often terminated.
And finally, layoffs can also occur as a result of any disharmony that exists between a company and its employees. There are many reasons for such disharmony, including participation in labor strikes or a decline in work performance.
In cases where layoffs are deemed inevitable, the various parties involved have rights and obligations which should be respected. Mr. Iqbal suggests that workers should defend their legitimate rights, as prescribed under the Labor Law, including rights to severance payments, work-appreciation fees, and compensation fees.
The minimum amount of any such fees should conform to what is mandated under the Labor Law, and can even be greater, depending on the results of any discussions held between the company and its workers. There are also the benefits which have accrued through various social-security programs to consider, such as the Old-Age Fund program.
“Workers are also entitled to continue to receive health insurance from the BPJS for Health for a period of six month following a layoff,” asserted Mr. Iqbal during a press conference held in Jakarta on Monday, 15 February 2016.
Heriyanto, the Chair of the Center for Automotive Machine and Component Management Board, also offered his opinion on these matters. According to Heriyanto’s data, the production capacity of the automotive industry started to decline during the second semester of 2015. This decline has affected employment rates in Indonesia, including the areas of recruitment and employment-contract extensions. “Many workers’ employment contracts are not being extended due to the decline [in production],” asserted Mr. Heriyanto.
Mr. Heriyanto further revealed that this decline in production capacity across the automotive sector was primarily being caused by a decline in domestic demand for vehicles due to the population’s low average purchasing power. Mr. Heriyanto also believes that the government’s policy of issuing a Government Regulation on Wages is inappropriate, and Heriyanto also reminded the various parties assembled at the press conference that Indonesia’s industrial and automotive products were still heavily reliant on the domestic market.
According to Mr. Iqbal, 10,000 workers have already been laid off this year. This figure comprises of layoffs within the automotive, oil-and-gas, textile, pharmaceutical, and electronic sectors. Mr. Iqbal’s claimed layoff figure, however, far exceeds the official figure announced by the government, which stands at 1,377 workers for the year so far.
Mr. Iqbal expressed his firm belief that companies are currently closing down their operations here owing to a lack of purchasing power among the general population, and that the cause of this purchasing-power deficit is low incomes. Mr. Iqbal also stated that these low incomes are in turn the result of the recently introduced Government Regulation on Wages.
In essence, layoffs have become the least favorable option within the realms of industrial relations. Unfortunately though, economic fluctuations often force businesses into layoffs when the unpredicted occurs.
Commenting to this issue, Said Iqbal, President of the Indonesian Workers Union Confederation (KSPI), outlined seven reasons for layoffs that workers need to be aware of. Firstly, according to Iqbal, a layoff usually happens when a business terminates its Indonesian operations.
The recent case of PT Ford Motor Indonesia is a classic example of this kind of layoff. As is well known, this iconic car producer recently decided to cease its operations in Indonesia, and has also, as a result, terminated the employment of all of its workers in this country. This has also been the case at the PT Panasonic Lighting plant, which is located in Cikarang in Bekasi. This factory recently closed certain of its division, stopping just short of total shutdown.
Layoffs can also happen when companies decide to downsize or restructure their operations. When either of these measures is undertaken, companies restructure themselves or merge with other companies instead of shutting down their businesses. Companies often decide to terminate the employment of workers from unproductive divisions during such downsizing or restructuring operations.
Layoffs can also occur when employees decide to resign their positions of their own volition. Furthermore, according to several court rulings, the absence of a worker for a number of consecutive days without any proper excuse being given can also be categorized as resignation.
A layoff can also be supported by a decision (penetapan) or ruling (putusan) issued by the Industrial Relations Court. This usually happens when judges grant a company’s request to terminate the employment of their workers while satisfying the provisions set out under the Labor Law.
Layoffs can also take place when an employee reaches retirement age, which is currently set at 56 years of age. Moreover, companies can also offer early retirement to their workers, such as is the case at the PT Mitsubishi (KRM) plant, which is situated in the East Jakarta district of Pulogadung.
Another reason for layoffs is the expiration of an employment contract, as in the case of employees who are working under temporary contracts or who are being outsourced. These types of layoffs are usually determined by a company’s productive capacity. When market demand is high, companies will boost their production output by taking on additional workers. Conversely, when market demand slows and production levels drop, the employment contracts of these temporary workers are often terminated.
And finally, layoffs can also occur as a result of any disharmony that exists between a company and its employees. There are many reasons for such disharmony, including participation in labor strikes or a decline in work performance.
In cases where layoffs are deemed inevitable, the various parties involved have rights and obligations which should be respected. Mr. Iqbal suggests that workers should defend their legitimate rights, as prescribed under the Labor Law, including rights to severance payments, work-appreciation fees, and compensation fees.
The minimum amount of any such fees should conform to what is mandated under the Labor Law, and can even be greater, depending on the results of any discussions held between the company and its workers. There are also the benefits which have accrued through various social-security programs to consider, such as the Old-Age Fund program.
“Workers are also entitled to continue to receive health insurance from the BPJS for Health for a period of six month following a layoff,” asserted Mr. Iqbal during a press conference held in Jakarta on Monday, 15 February 2016.
Heriyanto, the Chair of the Center for Automotive Machine and Component Management Board, also offered his opinion on these matters. According to Heriyanto’s data, the production capacity of the automotive industry started to decline during the second semester of 2015. This decline has affected employment rates in Indonesia, including the areas of recruitment and employment-contract extensions. “Many workers’ employment contracts are not being extended due to the decline [in production],” asserted Mr. Heriyanto.
Mr. Heriyanto further revealed that this decline in production capacity across the automotive sector was primarily being caused by a decline in domestic demand for vehicles due to the population’s low average purchasing power. Mr. Heriyanto also believes that the government’s policy of issuing a Government Regulation on Wages is inappropriate, and Heriyanto also reminded the various parties assembled at the press conference that Indonesia’s industrial and automotive products were still heavily reliant on the domestic market.
According to Mr. Iqbal, 10,000 workers have already been laid off this year. This figure comprises of layoffs within the automotive, oil-and-gas, textile, pharmaceutical, and electronic sectors. Mr. Iqbal’s claimed layoff figure, however, far exceeds the official figure announced by the government, which stands at 1,377 workers for the year so far.
Mr. Iqbal expressed his firm belief that companies are currently closing down their operations here owing to a lack of purchasing power among the general population, and that the cause of this purchasing-power deficit is low incomes. Mr. Iqbal also stated that these low incomes are in turn the result of the recently introduced Government Regulation on Wages.
(rfs/sp)
Marcell Sihombing, Ady TD Achmad
There are many ways of handling the various conflicts that arise within the realm of industrial relations, including layoffs. However, all of the relevant stakeholders should be aware that layoffs should be avoided as far as possible and only utilized as a last resort.
In essence, layoffs have become the least favorable option within the realms of industrial relations. Unfortunately though, economic fluctuations often force businesses into layoffs when the unpredicted occurs.
Commenting to this issue, Said Iqbal, President of the Indonesian Workers Union Confederation (KSPI), outlined seven reasons for layoffs that workers need to be aware of. Firstly, according to Iqbal, a layoff usually happens when a business terminates its Indonesian operations.
The recent case of PT Ford Motor Indonesia is a classic example of this kind of layoff. As is well known, this iconic car producer recently decided to cease its operations in Indonesia, and has also, as a result, terminated the employment of all of its workers in this country. This has also been the case at the PT Panasonic Lighting plant, which is located in Cikarang in Bekasi. This factory recently closed certain of its division, stopping just short of total shutdown.
Layoffs can also happen when companies decide to downsize or restructure their operations. When either of these measures is undertaken, companies restructure themselves or merge with other companies instead of shutting down their businesses. Companies often decide to terminate the employment of workers from unproductive divisions during such downsizing or restructuring operations.
Layoffs can also occur when employees decide to resign their positions of their own volition. Furthermore, according to several court rulings, the absence of a worker for a number of consecutive days without any proper excuse being given can also be categorized as resignation.
A layoff can also be supported by a decision (penetapan) or ruling (putusan) issued by the Industrial Relations Court. This usually happens when judges grant a company’s request to terminate the employment of their workers while satisfying the provisions set out under the Labor Law.
Layoffs can also take place when an employee reaches retirement age, which is currently set at 56 years of age. Moreover, companies can also offer early retirement to their workers, such as is the case at the PT Mitsubishi (KRM) plant, which is situated in the East Jakarta district of Pulogadung.
Another reason for layoffs is the expiration of an employment contract, as in the case of employees who are working under temporary contracts or who are being outsourced. These types of layoffs are usually determined by a company’s productive capacity. When market demand is high, companies will boost their production output by taking on additional workers. Conversely, when market demand slows and production levels drop, the employment contracts of these temporary workers are often terminated.
And finally, layoffs can also occur as a result of any disharmony that exists between a company and its employees. There are many reasons for such disharmony, including participation in labor strikes or a decline in work performance.
In cases where layoffs are deemed inevitable, the various parties involved have rights and obligations which should be respected. Mr. Iqbal suggests that workers should defend their legitimate rights, as prescribed under the Labor Law, including rights to severance payments, work-appreciation fees, and compensation fees.
The minimum amount of any such fees should conform to what is mandated under the Labor Law, and can even be greater, depending on the results of any discussions held between the company and its workers. There are also the benefits which have accrued through various social-security programs to consider, such as the Old-Age Fund program.
“Workers are also entitled to continue to receive health insurance from the BPJS for Health for a period of six month following a layoff,” asserted Mr. Iqbal during a press conference held in Jakarta on Monday, 15 February 2016.
Heriyanto, the Chair of the Center for Automotive Machine and Component Management Board, also offered his opinion on these matters. According to Heriyanto’s data, the production capacity of the automotive industry started to decline during the second semester of 2015. This decline has affected employment rates in Indonesia, including the areas of recruitment and employment-contract extensions. “Many workers’ employment contracts are not being extended due to the decline [in production],” asserted Mr. Heriyanto.
Mr. Heriyanto further revealed that this decline in production capacity across the automotive sector was primarily being caused by a decline in domestic demand for vehicles due to the population’s low average purchasing power. Mr. Heriyanto also believes that the government’s policy of issuing a Government Regulation on Wages is inappropriate, and Heriyanto also reminded the various parties assembled at the press conference that Indonesia’s industrial and automotive products were still heavily reliant on the domestic market.
According to Mr. Iqbal, 10,000 workers have already been laid off this year. This figure comprises of layoffs within the automotive, oil-and-gas, textile, pharmaceutical, and electronic sectors. Mr. Iqbal’s claimed layoff figure, however, far exceeds the official figure announced by the government, which stands at 1,377 workers for the year so far.
Mr. Iqbal expressed his firm belief that companies are currently closing down their operations here owing to a lack of purchasing power among the general population, and that the cause of this purchasing-power deficit is low incomes. Mr. Iqbal also stated that these low incomes are in turn the result of the recently introduced Government Regulation on Wages.
In essence, layoffs have become the least favorable option within the realms of industrial relations. Unfortunately though, economic fluctuations often force businesses into layoffs when the unpredicted occurs.
Commenting to this issue, Said Iqbal, President of the Indonesian Workers Union Confederation (KSPI), outlined seven reasons for layoffs that workers need to be aware of. Firstly, according to Iqbal, a layoff usually happens when a business terminates its Indonesian operations.
The recent case of PT Ford Motor Indonesia is a classic example of this kind of layoff. As is well known, this iconic car producer recently decided to cease its operations in Indonesia, and has also, as a result, terminated the employment of all of its workers in this country. This has also been the case at the PT Panasonic Lighting plant, which is located in Cikarang in Bekasi. This factory recently closed certain of its division, stopping just short of total shutdown.
Layoffs can also happen when companies decide to downsize or restructure their operations. When either of these measures is undertaken, companies restructure themselves or merge with other companies instead of shutting down their businesses. Companies often decide to terminate the employment of workers from unproductive divisions during such downsizing or restructuring operations.
Layoffs can also occur when employees decide to resign their positions of their own volition. Furthermore, according to several court rulings, the absence of a worker for a number of consecutive days without any proper excuse being given can also be categorized as resignation.
A layoff can also be supported by a decision (penetapan) or ruling (putusan) issued by the Industrial Relations Court. This usually happens when judges grant a company’s request to terminate the employment of their workers while satisfying the provisions set out under the Labor Law.
Layoffs can also take place when an employee reaches retirement age, which is currently set at 56 years of age. Moreover, companies can also offer early retirement to their workers, such as is the case at the PT Mitsubishi (KRM) plant, which is situated in the East Jakarta district of Pulogadung.
Another reason for layoffs is the expiration of an employment contract, as in the case of employees who are working under temporary contracts or who are being outsourced. These types of layoffs are usually determined by a company’s productive capacity. When market demand is high, companies will boost their production output by taking on additional workers. Conversely, when market demand slows and production levels drop, the employment contracts of these temporary workers are often terminated.
And finally, layoffs can also occur as a result of any disharmony that exists between a company and its employees. There are many reasons for such disharmony, including participation in labor strikes or a decline in work performance.
In cases where layoffs are deemed inevitable, the various parties involved have rights and obligations which should be respected. Mr. Iqbal suggests that workers should defend their legitimate rights, as prescribed under the Labor Law, including rights to severance payments, work-appreciation fees, and compensation fees.
The minimum amount of any such fees should conform to what is mandated under the Labor Law, and can even be greater, depending on the results of any discussions held between the company and its workers. There are also the benefits which have accrued through various social-security programs to consider, such as the Old-Age Fund program.
“Workers are also entitled to continue to receive health insurance from the BPJS for Health for a period of six month following a layoff,” asserted Mr. Iqbal during a press conference held in Jakarta on Monday, 15 February 2016.
Heriyanto, the Chair of the Center for Automotive Machine and Component Management Board, also offered his opinion on these matters. According to Heriyanto’s data, the production capacity of the automotive industry started to decline during the second semester of 2015. This decline has affected employment rates in Indonesia, including the areas of recruitment and employment-contract extensions. “Many workers’ employment contracts are not being extended due to the decline [in production],” asserted Mr. Heriyanto.
Mr. Heriyanto further revealed that this decline in production capacity across the automotive sector was primarily being caused by a decline in domestic demand for vehicles due to the population’s low average purchasing power. Mr. Heriyanto also believes that the government’s policy of issuing a Government Regulation on Wages is inappropriate, and Heriyanto also reminded the various parties assembled at the press conference that Indonesia’s industrial and automotive products were still heavily reliant on the domestic market.
According to Mr. Iqbal, 10,000 workers have already been laid off this year. This figure comprises of layoffs within the automotive, oil-and-gas, textile, pharmaceutical, and electronic sectors. Mr. Iqbal’s claimed layoff figure, however, far exceeds the official figure announced by the government, which stands at 1,377 workers for the year so far.
Mr. Iqbal expressed his firm belief that companies are currently closing down their operations here owing to a lack of purchasing power among the general population, and that the cause of this purchasing-power deficit is low incomes. Mr. Iqbal also stated that these low incomes are in turn the result of the recently introduced Government Regulation on Wages.
(rfs/sp)