More companies resort to dismissals: Ministry
The Jakarta Post , Jakarta | Wed, 01/07/2009 11:17 AM | Headlines
Up to 700 workers have been laid off less than a week into the year, bringing total dismissed workers since November last year, when the global financial crunch first hit the country, to almost 25,000, says the Manpower and Transmigration Ministry.
From early November to Jan. 5, the ministry recorded 24,452 workers had been laid off, confirming concerns often aired by businesses struggling to cope in the current adverse economic conditions.
Myra Maria Hanartani, a director general at the ministry, said Tuesday the layoffs were reported mostly at companies operating in the garment, plantations and forestry industries.
"Most companies have had to lay off workers because they haven't been able to secure sufficient orders," Myra told The Jakarta Post.
Registered companies are required to report to the ministry any plans that could result in layoffs, especially of permanent employees.
In addition to those permanently laid off, 11,703 workers have been temporarily laid off as of Jan. 5. Temporary dismissals mean workers still receive their basic monthly salaries and may be summoned back to work once the company's finances improve.
Myra said other company reports showed 25,577 more workers could be axed very soon.
While the government is committed to splashing out Rp 50 trillion (US$4.6 billion) in a stimulus package for industries to help mitigate the global economic fallout, companies hardest hit by the crisis are still expected to resort to layoffs.
And with the government already forecasting slower growth for more industries this year, more dismissals are expected.
According to data from the National Development Planning Board (Bappenas), growth in the forestry sector is estimated to fall to negative 1.5 percent this year, following on the negative 0.8 percent notched up in 2008. Meanwhile, growth in the plantations and non-oil-and-gas industries are to drop to 2.5 percent from 4 percent last year.
Only the mining and oil-and-gas industries are still expected to grow this year, by 2.5 percent and 5 percent respectively.
Earlier this week, the government announced plans to disburse Rp 50 trillion as a stimulus to keep the economy growing by at least 5 percent.
The stimulus is expected to cut the open unemployment rate to 8.34 percent, compared to 8.87 percent without the stimulus, according to acting Coordinator Minister for the Economy Sri Mulyani Indrawati.
National Development Planning Minister Paskah Suzetta said Tuesday the government could provide more than 2.1 million jobs in 2009 -- under the assumption that every 1 percent of economic growth would create 431,000 jobs. (hwa)
Link: http://www.thejakartapost.com/news/2009/01/07/more-companies-resort-dismissals-ministry.html
