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

Pic: Shutterstock

Apparel/Garments | On 29th Oct 2020

Bangladesh restored 40% of cancelled RMG orders: minister

Bangladesh foreign minister AK Abdul Momen recently said the...

Pic: Shutterstock

Textiles | On 29th Oct 2020

Uzbek trade body, Indonesian textile firm mull cooperation

Representatives of the Uzbekistan Textile and Garment Industry...

Pic: Shutterstock

Textiles | On 29th Oct 2020

PRC unofficially boycotts Australian cotton, imports halt

All cotton exports by Australia to China have reportedly stopped...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Abhimanyu Singh Rathore & Barbara Anna Kosiorek, Kannbar

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Sanjay Desai & Ashish Mulani, True Colors

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Rajesh Vig & Ritu Vig,

Rajesh Vig & Ritu Vig

Rajesh Vig and Ritu Vig, promoters of the kidswear brand Happy Feet,...

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

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

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


October 2020

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


Advanced Search