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: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Giorgio Mantovani
Corman S.p.A

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

October 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
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

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
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

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
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

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
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


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