Corporate “Sudden Death Syndrome”

[Dave70]

PT. Danbi International is manufacturer/exporter of False Eyelashes with more than 2 thousand employees which closed their business abruptly when workers were informed at dawn that “yesterday was their last day”.

The company was declared bankrupt which could have been avoided if the union accepted “pay cuts proposal” last year. More importantly, due to existing labor laws, the company find it difficult to reduce its workforce to improve efficiency. With slower sales, factory needs to produce less. But if you cannot retrench workers, there is no choice but to keep up the volume and store the unsold finished goods as inventory. This becomes a ticking time bomb if company is unable to sell the excess stocks. As stocks accumulate, cash flow problem increases. Then boom, thousands of workers is out of job.

If the labor law is more “flexible”, then the company could have been saved by downsizing their operation. Then crank up again after the storm has passed.

 

[Dave70]

Another case...

KOMPAS.com - Sebanyak 1.126 buruh PT Yihong Novatex Indonesia di Kabupaten Cirebon, Jawa Barat, harus menerima nasib pahit usai perusahaan tempat mereka bekerja memutuskan menghentikan operasional. Langkah ini diambil manajemen perusahaan setelah terjadi aksi mogok kerja selama empat hari berturut-turut yang dilakukan para pekerja. Aksi tersebut dipicu keputusan manajemen yang tidak memperpanjang kontrak tiga karyawan.

Artikel ini telah tayang di Kompas.com dengan judul "PHK Massal 1.126 Buruh PT Yihong, Berawal dari Mogok Kerja Bela 3 Rekan", Klik untuk baca: https://bandung.kompas.com/read/202...-yihong-berawal-dari-mogok-kerja-bela-3-rekan.

Nasib Ribuan Karyawan PT Yihong Kena PHK Minta Dipekerjakan Lagi, Kemarin Demo Desak Tutup Pabrik




The PMA company is fairly new, just a couple of years. Modern factory manufacturing products for export. Employs more than a thousand workers as it is in a labor-intensive industry, good for Indonesia, exactly what this country needs to create jobs and reduce unemployment. 3 contract workers were not re-hired, they were not fired. Immediately, the workers went on strike for 4 days, even demanding the company to close (see video). Unexpectedly, the company decided to close and terminate all employees. Now the workers are demanding to be employed back again (see video). But how if there is no company to return to? I think Disnakertrans (government labor department) is to blame too for “ordering” the company to make all contract workers to become permanent employees.

 

[fastpitch17]

Another case...

KOMPAS.com - Sebanyak 1.126 buruh PT Yihong Novatex Indonesia di Kabupaten Cirebon, Jawa Barat, harus menerima nasib pahit usai perusahaan tempat mereka bekerja memutuskan menghentikan operasional. Langkah ini diambil manajemen perusahaan setelah terjadi aksi mogok kerja selama empat hari berturut-turut yang dilakukan para pekerja. Aksi tersebut dipicu keputusan manajemen yang tidak memperpanjang kontrak tiga karyawan.

Artikel ini telah tayang di Kompas.com dengan judul "PHK Massal 1.126 Buruh PT Yihong, Berawal dari Mogok Kerja Bela 3 Rekan", Klik untuk baca: https://bandung.kompas.com/read/202...-yihong-berawal-dari-mogok-kerja-bela-3-rekan.

Nasib Ribuan Karyawan PT Yihong Kena PHK Minta Dipekerjakan Lagi, Kemarin Demo Desak Tutup Pabrik




The PMA company is fairly new, just a couple of years. Modern factory manufacturing products for export. Employs more than a thousand workers as it is in a labor-intensive industry, good for Indonesia, exactly what this country needs to create jobs and reduce unemployment. 3 contract workers were not re-hired, they were not fired. Immediately, the workers went on strike for 4 days, even demanding the company to close (see video). Unexpectedly, the company decided to close and terminate all employees. Now the workers are demanding to be employed back again (see video). But how if there is no company to return to? I think Disnakertrans (government labor department) is to blame too for “ordering” the company to make all contract workers to become permanent employees.

The government is saying no reason to close because they are not bankrupt. Business said the strike caused delivery delays and lost business. While it is unfortunate for so many to lose their jobs, actions have consequences and in this case a business decided to just close up. I believe businesses with large employee numbers should announce their closures at least 30 days prior to the closing.

 

[Shadrach]

The government is saying no reason to close because they are not bankrupt. Business said the strike caused delivery delays and lost business. While it is unfortunate for so many to lose their jobs, actions have consequences and in this case a business decided to just close up. I believe businesses with large employee numbers should announce their closures at least 30 days prior to the closing.

Something is really wrong here. How can a company have 1000 or 2000 workers and suddenly close? What kind of business is this? They must have paying very little wages to these workers. People need to look further into this company. Such as Who are the Owners? Are Unions allowed? Were the working conditions safe? There is definitely corruption in this situation!

 

[centurion]

They must have paying very little wages to these workers.

They should pay higher wages so they can be closed faster.

 

[Dave70]

The government is saying no reason to close because they are not bankrupt. Business said the strike caused delivery delays and lost business. While it is unfortunate for so many to lose their jobs, actions have consequences and in this case a business decided to just close up. I believe businesses with large employee numbers should announce their closures at least 30 days prior to the closing.

They are not bankrupt, but they lost business. Buyers cancelled their orders. Factory cannot run without orders. They cannot produce with no buyers of their products. No sales = no revenue. How can they pay their workers without income from sales?

I don't know if there is a regulation that require businesses to announce their closure at least 30 days prior to closing. But if there is, are they going to keep production running for 30 days and produce products which cannot be exported or even sold locally?

 

[Dave70]

Something is really wrong here. How can a company have 1000 or 2000 workers and suddenly close? What kind of business is this? They must have paying very little wages to these workers. People need to look further into this company. Such as Who are the Owners? Are Unions allowed? Were the working conditions safe? There is definitely corruption in this situation!

The owner decided to close, he probably cannot recover most of his investment even if he is able to move his machinery and sell the factory building.

Read the news, the workers are not complaining about their wages. So it's not about paying too little.

Working conditions must be excellent as they are being audited by their overseas buyers. No issue there.

Corruption? If I'm the owner, I will complain loudly about Disnaker. They made things worse, for everybody.