Thousands of workers suspended due to global financial crisis

Palangkaraya, NU Online
A number of companies in Central Kalimantan have suspended 2,591 workers because of the current global financial crisis, a local manpower official said.

"The suspended workers were previously employed in the wood and plantation sectors. But the suspension is temporary in nature because they will be reemployed when the financial condition returns to normal," Chief of the Industrial Relations Section at the Central Kalimantan Manpower and Transmigration Office Nurjanah said here on Sunday.<>

They were suspended after the companies ceased operations as a result of the global financial crisis which led to low demand and a drastic drop in the supply of raw materials, she said.

The companies include PT Bumi Asri Pasaman, PT Antang Permai Plywood Industri, and PT Korindo.

PT Bumi Asri Pesaman which is engaged in the processed rubber and rattan industry suspended 420 workers last October.

PT Antang Permai Plywwod Industri and PT Korino suspended 641 workers and 1,500 workers respectively.

Chief of the Central Kalimantan Manpower and Transmigration Office Muhammad Hatta said the local government had yet to receive a formal report from the companies that they had laid off their workers due to the global financial crisis.

"Admittedly, there have been rumors about massive lay-offs but we have yet to receive an official report from the companies. According to a preliminary report, the workers are only suspended and continue to receive wages," he said. (ant/dar)