Serang Rasyid Ridho – Two footwear companies that produce shoes for the Nike brand in Tangerang regency, Banten, are in the process of laying off (PHK) thousands of employees.
The head of the Banten province Labour and Transmigration Office (Disnakertrans), Septo Kalnadi, said that the PT Adis Dimension Footwear had laid off 1,500 employees, while PT Victory Ching Luh was in the process of laying off 2,000 employees.
Kalnadi said the layoffs were not caused by the high regency/municipal minimum wage (UMK), but because of a decline in orders from the brands that collaborate with the two companies.
"A lack of orders from the brand holders so they don't get orders. Not getting orders so because of the [lack of] orders they will lay off [employees]", Kalnadi told reporters at the Banten provincial government central complex on Wednesday March 5.
Layoffs happening since 2024
The layoffs by the two companies have been going on since November 2024 through to January 2025. At present, the two companies are still in the stage of completing payments for affected employees.
"Currently they're in the process of paying off the rights of the employees. It's still in process", said Kalnadi.
Layoffs in Banten
In 2024 as many as 12,000 employees in Banten province were laid off due to various factors, including decreased product demand and company efficiency.
"Every day there are companies that ask for permission to carry out layoffs. The permits are at the district/municipality and it was around 12,000 employees for 2024", said Kalnadi.
[Translated by James Balowski. The original title of the article was "Gara-gara Ini, Pabrik Sepatu Nike di Tangerang PHK Ribuan Karyawan!".]
