Shoes brand Nike

4,985 Nike Shoe Factory Workers Hit by Layoffs in Tangerang

PT Victory Chingluh Indonesia (Chingluh), a manufacturer of Nike brand shoes in Indonesia, terminated the Employment Relations (PHK) of its 4,985 employees. This was done because the impact of the corona virus pandemic (covid-19).

Wandi, Chairperson of the Indonesian Labor Union Association Chingluh said, the layoffs are targeting employees with three months or probation and permanent employees with under one year of service.

"That is the data as of May 20 yesterday. First, it was March and April for a trial period of 3 months. Second, as of the 20th yesterday," he told CNNIndonesia.com on Thursday (5/28).

In fact, five unions in Chingluh had previously discussed with company management and requested that layoff options not be taken.

Unions advised management to improve operational cost efficiency and reduce working hours so that company expenses could be reduced amid the co-19 pandemic. However, the option was not taken by the company due to the low market demand and other problems that burden the company such as the difficulty of raw materials.

"Finally, the option was taken. And we ask that there be certainty about the rights of workers who were laid off in accordance with Law number 3 of 2003 concerning employment Article 156 regarding compensation," added Wandi. "This is the first time this has happened since the founding of Chingluh, (layoffs) in 2020. This pandemic has been carried out on a massive scale. But the company notes that it will prioritize those laid off to return to work if there is another recruitment after stable conditions," he said.

Director of Industrial Relations Dispute Settlement Ministry of Labor John Daniel Saragih confirmed the mass layoffs carried out by Chingluh based on information from the Tangerang District Manpower Office. According to John, layoffs could have been prevented if the company could make efficiency with good management.

In addition to layoffs, the footwear industry in Indonesia also laid off hundreds of thousands of employees during the pandemic. In addition to the decline in market demand, the difficulty of raw materials and fears of the spread of co-19 made the shoe factories temporarily halt production and carry out massive efficiency.

Source: http://shorturl.at/uvBYZ