Jakarta, CNBC Indonesia – Retail company PT Hero Supermarket Tbk will close all Giant outlets starting in July 2021. This policy will have a major impact on the fate of employees.
Data from the Association of Indonesian Workers’ Unions (ASPEK Indonesia) which is the parent of the Hero Supermarket Workers Union, stated that initially Giant had around 15,000 employees.
However, due to losses, since two years ago the company began to reduce employees, both permanent and contract employees. For permanent employees, among others, management offers early retirement. About half of it is out. Now, the company will release the remaining 7,000 employees.
“Two days ago I received information from the Hero Supermarket Workers Union, which is indeed my member in the Indonesian Aspect, the remaining 7,000 people, all of them have been laid off (Termination of Remaining Relations), there is nothing left,” said President of the Indonesian Aspect Mirah Sumirat at a press conference. virtual, Friday (28/5/2021).
For companies, this is the right moment to hire new employees with younger workers and lower wages. However, layoffs of that magnitude will certainly lead to new unemployment. The existing open unemployment will be large.
“Indeed, then there were negotiations with the union that they would be placed in Hero and IKEA, but that was only 5 outlets. So it didn’t really raise, how many people out of the 7,000 were then channeled to other businesses in Giant, it’s not significant,” he said.
According to workers’ confessions, initially the management offered the amount of layoffs in accordance with the Omnibus Law. This means that the value that will be received by the workers will be smaller than the previous regulation through Law Number 13 of 2003 concerning Manpower. However, SP Supermarket refused.
“Their argumentation is that they have lost Rp. 1 trillion since investing 1-2 years ago, especially with the addition of Covid-19. Today they are still negotiating, the General Chair and some of his management friends were suddenly summoned by the management of Hero Supermarket,” said Mirah.
Hero Management Explanation
The management of Giant outlets, PT Hero Supermarket Tbk (HERO), ensures that the decision to close all Giant outlets starting next July will affect the fate of all employees.
Diky Risbianto, Head of Corporate and Consumer Affairs at PT Hero Supermarket Tbk (HERO), explained that the company is currently still considering the number of outlets that will be converted into IKEA or Hero Supermarket outlets.
“With a heavy heart, we convey, all employees of Giant outlets will be affected by this decision. We are still considering the number of outlets that will be converted into IKEA outlets or Hero Supermarkets,” said Dicky, to CNBC Indonesia, Wednesday (26/5/2021).
Dicky continued, the management is currently still negotiating with third parties regarding the potential to transfer ownership of a number of Giant outlets.
“Affected employee members can apply for jobs in our other lines of business. We also hope to provide new opportunities along with the development of our other businesses that have positive growth potential, namely Guardian, IKEA, and Hero Supermarket,” he explained.
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