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  • Mass Layoffs (with list of companies)

    Recently, there’s been plenty of news about mass layoffs, how bad is it and how bad can it be? Is there any reliable job data available in Indonesia? What could happen if unemployment rate keep on rising until it reaches critical level (and what is the “critical level”)? Is big trouble ahead? Why are some foreign companies pulling out of Indonesia? Is it just low sales or poor margins or unfriendly government policies towards businesses? However bad the situation, there will be companies hiring, that’s for sure. So how about some help from the government to make hiring easier for businesses? One way to make hiring easier (& create more jobs) is by making firing easier too. In other words, you cannot make hiring easier by making firing difficult. Maybe it’s time for the government to amend the 2003 Labor Law, the required severance payment is just too big a burden & the termination process too complicated for any business large or small. Mass layoffs can include temporary employees whose contracts are not renewed, and permanent employees offered early retirement or voluntary resignation (so technically, the company is not dismissing them). Hereunder are list of companies giving up or planning mass layoffs this year, I hope other forum members can also add to the list if he/she knows about any mass layoffs involving 50 or more workers (or at least 33% of a site’s workforce) laid off from the same company at around the same time (no company likes to announce mass layoffs, they want to do it as quietly as possible, so information is hard to come by);

    1. Panasonic Pasuruan
    2. Panasonic Bekasi
    3. Toshiba
    4. Philips
    5. Chevron
    6. Vico
    7. Halliburton
    8. GM
    9. Ford
    10. Harley-Davidson
    11. PT. Samoin
    12. PT. Star Link
    13. PT. Jaba Garmindo
    14. Yamaha
    15. Honda
    16. Hino
    17. PT. Shinkei
    18. PT. ASA Elektronik
    19. PT. Novartis
    20. PT. Sandoz
    21. PT. Sanofi Aventis
    22. PT. Merck
    23. PT. Glaxo
    24. Johnson & Johnson
    25. Maspion Group

  • #2
    26. CIMB Niaga Bank
    27. Citibank
    28. ANZ Bank
    29. Commonwealth Bank
    30. United Tractors
    31. PT. Sandoz
    32. PT. Aishin
    33. PT. Mushashi
    34. PT. Sunstar

    Comment


    • #3
      What you did not include, are the many companies who offer things like 'early retirement programs' every once in a while. Like you say, even if it is a package, it is some form of layoff too.

      Then you can add many other banks too. Examples would be next to CIMB, the Bank of Tokyo, Rabobank, ...

      [COLOR=#333333]Mass layoffs can include temporary employees whose contracts are not renewed, and permanent employees offered early retirement or voluntary resignation (so technically, the company is not dismissing them).[/COLOR]
      Last edited by jstar; 12-02-16, 14:24. Reason: some examples
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      Comment


      • #4
        Originally posted by sul1995 View Post
        Recently, there’s been plenty of news about mass layoffs, how bad is it and how bad can it be? Is there any reliable job data available in Indonesia? What could happen if unemployment rate keep on rising until it reaches critical level (and what is the “critical level”)? Is big trouble ahead? Why are some foreign companies pulling out of Indonesia? Is it just low sales or poor margins or unfriendly government policies towards businesses? However bad the situation, there will be companies hiring, that’s for sure. So how about some help from the government to make hiring easier for businesses? One way to make hiring easier (& create more jobs) is by making firing easier too. In other words, you cannot make hiring easier by making firing difficult. Maybe it’s time for the government to amend the 2003 Labor Law, the required severance payment is just too big a burden & the termination process too complicated for any business large or small. Mass layoffs can include temporary employees whose contracts are not renewed, and permanent employees offered early retirement or voluntary resignation (so technically, the company is not dismissing them). Hereunder are list of companies giving up or planning mass layoffs this year, I hope other forum members can also add to the list if he/she knows about any mass layoffs involving 50 or more workers (or at least 33% of a site’s workforce) laid off from the same company at around the same time (no company likes to announce mass layoffs, they want to do it as quietly as possible, so information is hard to come by);
        Plenty of questions here. I will quickly add there is also the whole textile industry who is doing layoffs.
        You can add to your company list PT. Mattel (15 000->3000 employees). Not sure if they started or already finished with redundancies.
        There is no telling how bad it can be. It is also hard to put any fixed number on how many % of unemployment will cause riots or public unrest.

        Foreign companies are pulling out from Indonesia because of: cheaper workforce somewhere else (Vietnam, Bangladesz ect.), no or low amount of order from abroad caused maybe by economical slowdown. Gov. favours local companies vs international for infrastructure projects like in energy sector.

        What you said about severance payment for workers is also true. Plenty of companies are now switching to contractor's agreements. So they lay off all people with permanent contract, and re-hire them back on contract but only those that they need.

        On the side I can add plenty of new factories are being build together with apartments and houses. This is something what I don't understand. In Europe construction sector is the first one that will shows any economical abnormalities. If construction sector is not doing well every other sector will be in some way feel the impact.

        Comment


        • #5
          I forgot to add that maybe frequent demonstrations from unions are also part of some international companies to close their businesses in Indonesia.

          Gov says "not to worry".

          http://jakartaglobe.beritasatu.com/b...ers-not-worry/

          http://jakartaglobe.beritasatu.com/b...ower-minister/

          Comment


          • #6
            OP ,
            1. what is the point that you want to get by creating this thread? awareness of getting lay off?
            2. each company must have different reasons why they close down their plant/business/office here. you cant just 'blame' indonesian government for this. some of them have low business globally, and feel that cutting down some plants would be the best thing to do.
            3. where do you get the data from? Honda in cibitung is still recruiting people. my friend works at aishin and said reported no lay off happen so far. in fact they just got some bonus. Ford is actually closing as they try to cut some expenses here. but they dont have factories in here ( different thing than General motor). They 'only' have some stores.
            dont judge a book by it cover. judge it by it price. good books are expensive

            Comment


            • #7
              Originally posted by naughtygab View Post
              ...
              Naughtygab do you know or maybe heard of Pt. Astra cutting down some of its workforce?

              Comment


              • #8
                I don't remember if I read this somewhere or heard on the radio (could've been an interview on Brava FM)..some companies did not do a straight layoff...some close their plants in Jakarta, to move them to cheaper areas like East Java, and it's not necessarily the whole plant. For example say, Toshiba....the lay off might involve only certain department (say..maybe certain home appliances) instead of the whole electronics division.

                Sorry can't provide link to support this.

                Comment


                • #9
                  The rupiah has been strengthening the last week. I guess they like the mass layoffs.
                  Sasa Bule is having a bayi!

                  Comment


                  • #10
                    Originally posted by naughtygab View Post
                    OP ,
                    1. what is the point that you want to get by creating this thread? awareness of getting lay off?
                    2. each company must have different reasons why they close down their plant/business/office here. you cant just 'blame' indonesian government for this. some of them have low business globally, and feel that cutting down some plants would be the best thing to do.
                    3. where do you get the data from? Honda in cibitung is still recruiting people. my friend works at aishin and said reported no lay off happen so far. in fact they just got some bonus. Ford is actually closing as they try to cut some expenses here. but they dont have factories in here ( different thing than General motor). They 'only' have some stores.
                    1. I fell in love with this country, and I speak out because I care about things happening (or what will happen) here. If I don’t care, I’ll say never mind, it’s not my country anyway.
                    2. I’m not blaming the government, on the contrary, I’m trying to suggest how to help in this situation (amend the 2003 Labor Law).
                    3. I compiled the data from news sources, some were revealed by labor unions. The list includes companies that have laid off or are planning to lay off workers this year. So some in the list are yet to happen, but the plan is already known. About Honda, I don’t know if it is the motorcycle or automotive division, just Honda as reported.


                    Continuing with the list (by the way, please feel free to continue with the numbering if you reply & provide any new name to the list);

                    35. Bank of Tokyo (courtesy of jstar)
                    36. Rabobank (courtesy of jstar)
                    37. PT. Mattel (courtesy of Smallworld)
                    38. PT. Astra (courtesy of Smallworld)

                    Comment


                    • #11
                      Actually, the law lowers the amount of severance package required if you are closing your business and can show that it has been making a loss for... two years in a row. Hmm, given the choice up front, think I'd rather close after one year of losses with a bad future prospect.

                      Gotta say, I'm less of a fan of labor laws than I used to be. Seems like business owners get kicked while they are down, while employees get a bonus, thing is, they were both part of the same failure.

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                      • #12
                        Not only that; also the protectionistic approach and measures towards foreign entities, don't really make sense and have adverse effects. When foreign management 'flees' the country to 'reside' in Singapore and put Indonesian strawmen in their place, and the moment US car manufacturing companies are closing their plants or pulling the plug completely, something is really wrong.
                        Last edited by jstar; 12-02-16, 20:55. Reason: GM and Ford
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                        • #13
                          Originally posted by Happyman View Post
                          Actually, the law lowers the amount of severance package required if you are closing your business and can show that it has been making a loss for... two years in a row. Hmm, given the choice up front, think I'd rather close after one year of losses with a bad future prospect.

                          Gotta say, I'm less of a fan of labor laws than I used to be. Seems like business owners get kicked while they are down, while employees get a bonus, thing is, they were both part of the same failure.
                          Not quite true tho.. not every employees get a bonus. The only one receiving benefit from the current labor law is ironically those guys that march the streets whenever its time to discuss yearly labor pay rise. Older generation labors and employees like me who started ourselves only get inflation and decrease in salary worth.
                          There is no benefit from hardwork to get salary rise now, as those demonstrators get more just by not-working.

                          Jokowi need to be stern with them as the problem also starts with him giving enormous raise several years back. Jokowi gave them liver and now they ask for heart.
                          Spider pig spider pig, does whatever a spider pig can

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                          • #14
                            Originally posted by SMALLWORLD View Post
                            I forgot to add that maybe frequent demonstrations from unions are also part of some international companies to close their businesses in Indonesia.

                            Gov says "not to worry".

                            http://jakartaglobe.beritasatu.com/b...ers-not-worry/

                            http://jakartaglobe.beritasatu.com/b...ower-minister/
                            I guess they will "not worry" until it's too late. How can they look for solutions IF they don't recognize that there is a problem? The situation can become grave & serious soon... but I hope it won't get to that.

                            Comment


                            • #15
                              Originally posted by Jaime C View Post
                              The rupiah has been strengthening the last week. I guess they like the mass layoffs.
                              I think it is the US Dollar weakening against other currencies.

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