Cases of layoffs in Indonesia dropped nearly 60 percent in 2012 from a year earlier, pointing to improved businesses and labor relationships, said the Minister of Manpower and Transmigration.
Minister Muhaimin Iskandar said last year there were 1,916 cases of layoffs involving 7,465 workers — a significant decrease from the 3,875 cases of layoffs involving 17,106 workers recorded by the ministry in 2011.
“The government has continuously pushed so that every problem between employers and workers is settled through open dialog and bipartite partnership forums at respective companies,” the minister said.
Muhaimin added the bipartite forum has been the key to better industrial relationships between workers and their employers. The forum, he said, has also helped cut the number of strikes to 11 in 2012.
“Well functioning communication has created a mutual sense of trust and harmonious working relationships which in turn increase productivity and welfare of all sides,” he said.
But the minister’s claims offer stark contrast with data from the East Kalimantan chapter of the Indonesian Employers Association (Apindo).
Apindo has recorded at least 100,000 people working in coal mining companies in East Kalimantan have been laid off since the start of 2012, as global prices for the commodity continue to fall.
Choosen excerpts by Job Market Monitor from