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.]
