Home / Knowledge / News / Textiles / Textile industry may face mass layoffs
Textile industry may face mass layoffs
28
Oct '08
The global economic turmoil and resultant slowdown in major economies of the world has started sending shivers down the spine of textile and garment sector in a majority of countries. Riding on the growth of preceding few years and anticipating growth to continue in next few years, a lot of countries had made major investments in the sector.

But now the crisis which is reaching unprecedented levels with each passing day has reached shores of Indonesia. Indonesia is among the top 5 garment exporting countries to the US and it's this market that has sent pressures shooting up.

Indonesia exported apparels worth US $2.38 billion in the first six months of 2008 to the markets of the US, a growth of just 1.37 percent corresponding to the same period of 2007. In a recent interview to fibre2fashion Mr EG Ismy, Secretary General of the Indonesian Textile Association (API) had said “Demand for Indonesian textiles and garments are still high, due to which there has been no major reduction in production.”

But now in a major turn of events in a matter of just a few days, the textile body is talking about layoffs numbering to 120,000 in the industry, next year. The industry employs around 1.2 million people and figures of expected retrenchments total to nearly 10 percent of total workforce.

But according to Indonesian labour laws, workers who are laid off are eligible to receive their salaries and absorbed back once their units start running normally. But if the problem takes a turn for the worse, there is a distinct possibility that workers could be permanently discharged, adds the association body.

However according to API, manufacturers were trying to prevent layoffs and were instead adjusting working hours and said the government should respond immediately to help the sector.

However according to statistics of the Investment Coordination Agency, the country has received 25 new investments in the textile industry in the current year.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Applied DNA Sciences

Apparel/Garments | On 24th Feb 2017

SigNatureT DNA can help prevent apparel counterfeiting

SigNatureT DNA is forensic molecular tag by Applied DNA Sciences...

Textiles | On 24th Feb 2017

Pakistan's textile exports down 1.54% in July-Jan FY17

The value of textile and garment exports made by Pakistan decreased...

Courtesy: The Irish News/Christian Cowan (Google)

Fashion | On 24th Feb 2017

Google & Christian Cowan create 'really blue' jeans

Google has partnered with British fashion designer Christian Cowan to ...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search