Detik.com - January 12, 2006
Triono Wahyu Sudibyo, Semarang - Fuel price
increases at the end of last year are still
resulting in “casualties”. Based on 2006 data from
the Surabaya Social Revelation Foundation (Yawas),
at least 2,786 workers in Central Java are threaded
with dismissal.
In addition to the fuel price increases, the threat
of dismissals has also caused by increases to
electricity rates. The companies that are likely to
carry out dismissals are PT Pagilaran, Batang
(plantation), PT Hanil, Boyolali (textile),
cigarette industries in Solo, PT Semen Cibinong, PT
Suryatek Magelang (textile), PT Tunas Kencana
Magelang and PT Karya Utama Magelang (roof tiles).
“In 2005 there were indications that they would
dismiss their workers. Basically they are finding it
very difficult to pay workers since the fuel and
electricity prices were raised”, said Yawas director
Nur Fuad Ali at his office on Jalan Sri Widodo
Selatan in Semarang on Thursday January 12.
Based on a ranking by total number of workers, the
Solo cigarette industry ranked highest with 3,288
workers followed by PT Pagilaran (2,000), PT Hanil
(1,000) and PT Suryatek Magelang (385). The three
other companies employ less than 100 workers.
If the dismissals do take place, it will be worse
than 2005 when around 8,802 workers were dismissed.
“The typical reason for dismissals at that time was
companies going bankrupt. This could have happened
because of increases in production costs as a result
of the fuel and electricity price increase”, said
Fuad.
Last year, the business sectors that suffered most
were the textile, clothing and leather industries.
As may as 5,115 workers in these industries were
dismissed. This was followed by the timber (580
workers) and pharmaceutical (176 workers)
industries.
Many of the companies that declared bankruptcy did
so because of labour unrest. In the period July-
December 2005, there were 126 cases of worker
demonstrations. “The majority of them were demanding
higher wages. This is also because of the flow on
effect from fuel and electricity price increases”,
Fuad explained.
Worker demonstrations took place in 30
cities/regencies in Central Java in 2005. This means
that there were only five cities/regencies where
there was no worker unrest but this was because the
small number of workers in these areas. The city
that had the most frequent worker demonstrations was
Semarang and Purwokerto.
“With this data, the government should act more
carefully and side with workers. At any rate if
workers are dismissed as unemployment will further
spread”, said Fuad hopefully. (nrl)
[Translated by James Balowski.]
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