Indonesia: Footwear workers could miss out on wage rise
19/12/2012
MS Hidayat said if labour-intensive companies were forced to raise wages, they might have to lay off staff, which would further impede their growth. “If we force them to comply with the new minimum wages, they might have to lay off their workers, creating a huge amount of unemployed people,” he said, according to the Jakarta Post.
Leather, footwear and textiles were among the slowest growing sectors in the country, recording a growth of 3.6% this year, compared with 8.8% last year.
A number of factories had to suspend production this year after workers protested about low wages and poor working conditions.
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