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

Textiles | On 16th Aug 2017

USITC to continue investigations on PSF imports

The US International Trade Commission (USITC) has determined that...

Textiles | On 16th Aug 2017

India’s apparel exports stumble in July 2017

Exports of readymade garments (including those made of cotton,...

Apparel/Garments | On 16th Aug 2017

EU displaces Japan as Myanmar’s largest apparel market

After the reinstatement of Generalised Scheme of Preferences (GSP)...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
18.5%
Skip
14.8%

Total Votes: 27

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
37.0%
No
40.7%
Skip
22.2%

Total Votes: 27

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
81.5%
No
7.4%
Skip
11.1%

Total Votes: 27

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
55.6%
No
11.1%
Skip
33.3%

Total Votes: 27


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X