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Textile and footwear industry to see massive job cuts

23
Dec '08
After gathering information from various business associations of Indonesia, experts have come to the conclusion that production cuts amid weakened demand due to the global economic turmoil has been responsible for dismissal of huge numbers of workers, especially in textile, garment, footwear and construction industries.

It is estimated that the textile and garment industry will terminate up to 150,000 workers in 2009.

According to Indonesian provincial Manpower and Transmigration Agency, a big garment maker of Indonesia named PT Arta Glory Buana which is currently employing about 1,300 workers in Candi-Sidoarjo, East Java Province, have stopped operation without any provision for compensation for loss of jobs.

According to Mr Eddy Widjanarko, Chairman of the Indonesian Footwear Association (Aprisindo), even the footwear hit hard by lower demand, has forced companies to reduce production, resulting in sacking workers. The sector forecasts to layoff nearly 10,000 workers by the end of this year and up to 30,000 in 2009.

Fibre2fashion News Desk - Vietnam


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