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Textile industry to lay off more workers as export markets continue falling
The textile industry continues to face pressure from prolonged falling exports with several firms prompted to take further cost-cutting measures, especially on workers.
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A worker completes production of sarong cloth in a textile factory in Majalaya industrial estate in Bandung regency, West Java, on Jan. 4, 2019. (Antara/Raisan Al Farisi)
M
ore workers are expected to head to the chopping block in the Indonesian textile industry later this year, as companies face a prolonged slowdown in the export market.
Indonesian Textile Association (API) executive director Danang Girindrawardana said on Wednesday, approximately 12,000 workers from five textile companies would be impacted by the cost-cutting measures, which he expected would take place in the third quarter this year.
The measures will come in three possible forms, namely layoff, contract termination or shorter working hours, the latter resulting in lower monthly wages.
“This is our last resort, which we will do by rationalizing our workers,” Danang said, as quoted from Katadata.
Read also: Textile industry faces layoff storm amid ailing exports
Firms in the textile industry have made attempts to prevent a larger round of layoffs by reducing production costs, lobbying for the improvement of policies or laws and spreading information related to the anti-illegal import movement, he said.
The International Monetary Fund (IMF) has projected world economic growth to decline to 2.8 percent this year from 3.4 percent last year.
