Nearly 70,000 textile workers dismissed following the fuel price hike

25 Oct '05

1 min read

Following the high fuel prices, approximately 70000 workers have been dismissed from the job, said Benny Sutrisno, Indonesian Textile Association Chairman. Benny added that workers were from Bandung in West Java and Surakarta in Central Java. He feared that this figure might go up to 100,000 by the end of current year.

Since fuel includes 30 percent of manufacturing costs, apart from other expenses, about 500,000 workers have to be dismissed.

Some 300,000 workers were working in medium and large industries and others were in small-size industries.

As it has strong relations with workers and the high severance pay, it is a tough decission in the end to dismiss workers.

For example, a worker who has been in the company for nine years would be given 26 to 29 months salary as compensation.

Majority of people in the country are under the burden of fuel price hike policy and therefore, various parties in the House of Representatives have requested the government to reconsider this policy.

The House should convene a special session to impel the government to reconsider the Oct. 1 policy, which saw fuel prices soar by an average of 126 percent, said Tjahjo Kumolo, Chairman of PDI - P party.

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