Usai Sritex, Kini PT Yihong PHK 1.126 Karyawan

Summary

PT Yihong Novatex in Cirebon, Indonesia, faced a massive layoff of 1,126 workers after labor disputes, including claims of unfair practices and violations of labor laws. The conflict began with a strike due to unjust terminations and continued with workers demanding justice and the reinstatement of their positions. The company's decision to lay off workers was linked to operational efficiency, but workers accused the company of mishandling the situation. The local labor department is still reviewing the legality of the layoffs, with ongoing protests and calls for a solution to prevent further economic hardship.

Takeaways

• 😀 PT Yihong Novatex, an Indonesian company, laid off 1,126 workers in Cirebon, West Java, amid labor issues and protests.
• 😀 The layoffs followed a series of spontaneous strikes by workers in response to previous layoffs and claims of unfair practices.
• 😀 The mass layoffs were announced on March 10, 2025, following the closure of the PT Yihong factory.
• 😀 The company faced accusations of violating labor laws, including issues with compensation, work hours, and employee status.
• 😀 Workers initially protested the layoffs in early March and took part in a four-day strike to demand the reinstatement of their colleagues.
• 😀 PT Yihong cited financial losses and production delays as reasons for the mass layoffs, claiming it was necessary for operational efficiency.
• 😀 The local government, including the Cirebon Employment Office, questioned the legality of the layoffs, indicating that PT Yihong was not bankrupt.
• 😀 Workers demanded the company adhere to labor laws and rehire the 1,126 dismissed employees, as well as fulfill their legal rights.
• 😀 There were allegations that PT Yihong was trying to bypass labor regulations and deceive workers with promises of compensation that weren't backed up.
• 😀 The Indonesian Ministry of Industry plans to address the situation in the following week, as the workers still await clarity on their legal status and compensation.

Q & A

What triggered the mass layoffs at PT Yihong Novatex?

The mass layoffs at PT Yihong Novatex were triggered by labor issues, including violations of labor regulations, such as compensation disputes, work hours, status of temporary workers, and improper communication of company rules. This escalated after a spontaneous strike by workers in response to earlier layoffs.

What were the specific violations identified by the labor inspection at PT Yihong?

The labor inspection found four key violations: issues with compensation, unpaid work hours, the status of daily contract workers, and the failure to properly communicate company regulations to employees.

How did PT Yihong respond to the labor inspection findings?

In response to the labor inspection findings, PT Yihong initiated layoffs, starting with 20 workers, then 60, and finally 3 more workers in early March 2025, which further escalated the situation.

What action did the workers take after the layoffs began?

The workers organized a spontaneous strike for 4 days to show solidarity and protest against the layoffs, which they saw as unjust.

What was PT Yihong’s justification for the layoffs?

PT Yihong claimed that the layoffs were necessary for operational efficiency, despite the workers' protests and the labor violations found during inspections.

What is the current status of the laid-off workers?

As of April 7, 2025, the 1,126 laid-off workers were still awaiting clarity on their legal status and compensation. The local Department of Manpower (Disnaker) is reviewing the legality of the mass layoffs.

What role did the local government play in the dispute?

The local Department of Manpower (Disnaker) intervened by investigating the legality of the layoffs. They indicated that PT Yihong was not bankrupt, suggesting that the mass layoffs could be reevaluated.

How did PT Yihong’s management respond to the protests and legal concerns?

PT Yihong’s management chose not to publicly address the demands for justice or the concerns raised by the workers and local government. They only reiterated that the layoffs were part of an operational efficiency plan.

What actions are being considered to resolve the situation?

The Indonesian Ministry of Industry, represented by Deputy Minister Faisal Riza, stated that the issue would be discussed further the following week, with the aim to find a resolution for the workers and address the legal implications of the layoffs.

What is the potential economic impact of this situation on Indonesia?

The situation could negatively affect the local economy by increasing unemployment, disrupting workers' livelihoods, and potentially causing foreign investment to pull out of Indonesia, especially considering PT Yihong is a foreign-invested company from China.