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Global downturn hits E. Java: Thousands face dismissal in Malang
The Jakarta Post , Jakarta | Thu, 04/02/2009 10:45 AM | National
Thousands of workers in Malang
regency, East Java, face dismissal because of a recent decrease in demand for
local products, the Malang
chapter of the Indonesian Employers Association (Apindo) announced on Thursday.
Samuel Molindo, secretary of Apindo Malang, told tempointeraktif.com
that around 120 of around 600 companies in the regency had dismissed workers
already.
Because of the global economic downturn, companies had seen a decrease in
profits, Samuel said, adding that drastic increases in prices of raw materials had
also hit local producers.
Some companies had begun reducing work hours and numbers of contract staff, Samuel
said.
Malang regency produces
plastic goods, textiles, coffee and shrimp products. Its export destinations
include countries in Western Europe, the Middle East, Asia, North America and Australia. (dre)
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