Jakarta, CNN Indonesia –
The Confederation of Indonesian Trade Unions (KSPI) said that around 3,000 workers were threatened with termination of employment (PHK) due to the outlet closure plan Giant throughout Indonesia by the end of July 2021.
The information is said to come from the Hero Group and the Indonesian Workers Union Association (Aspek).
“With the closing of Giant outlets throughout Indonesia, 3,000 workers could potentially be laid off,” said KSPI President Said Iqbal in an official statement received by CNNIndonesia.com, Wednesday (26/5).
To that end, Said asked the company to negotiate with the Hero Group labor union accompanied by Aspek.
Said also requested that thousands of employees at Giant outlets who were affected by layoffs be employed in other Hero Group company units such as Hero Supermaket, Guardian, and IKEA.
“If there are workers who are not transferred to other companies, KSPI asks the company not to use the severance pay calculation stipulated in the omnibus law of the Job Creation Law,” said Said.
According to Said, the company must pay employee rights along with other compensation as stipulated in the Collective Labor Agreement (PKB). This PKB has been agreed upon by the head of the Hero Group company and the company’s workers union.
Said also asked the company not to rush into their decision to terminate the nearly 3,000 employees.
He appealed to the company to give the union time to provide socialization regarding this mass layoff plan.
“Companies should not be hasty and impose their will on the massive layoffs at Giant. KSPI and ASPEK Indonesia will guard the layoffs of thousands of workers at Giant,” said Iqbal.
According to Said, the planned mass layoffs that would affect nearly 3,000 Giant employees proved that the Job Creation Law was not what the ministers had explained.
The reason is, said Said, the omnibus law is said to open up many jobs, attract investors, and prevent layoffs. However, the facts on the ground are that investors are withdrawing their investment from Indonesia.
“There is information, the cause of the closure of 80 Giant outlets throughout Indonesia is due to the withdrawal of shares originating from Hong Kong investors from the Hero Group,” said Said.
Apart from that, KSPI also noted that the threat of layoffs on a large scale was stalking several other companies such as Garuda Indonesia, several companies in Bekasi, to PT Sri Rejeki Isman tbk which is part of the Sritex Group. These companies are said to be entangled in Suspension of Debt Payment Obligations (PKPU).
Said then asked the panel of judges of the Constitutional Court to grant the lawsuit filed by KSPSI AGN and KSPI to cancel the Employment Creation Law.
“KSPI asked the government and judges of the Constitutional Court to revoke the omnibus law of the Job Creation Law and seek rescue strategies against the explosion of layoffs in the midst of a pandemic that was not over yet,” he urged.
For information, PT Hero Supermarket Tbk ensures that it will close all Giant outlets in Indonesia by the end of July. This is because the company wants to focus on developing other trademark businesses with higher growth potential.
President Director of PT Hero Supermarket Tbk Patrik Lindvall said the company was focusing its business on the IKEA, Guardian and Hero Supermarket brands after all Giant outlets were closed.
The management will also convert five Giant outlets into IKEA and consider converting a number of Giant outlets into Hero Supermarket outlets.
(It / fr)
– .
