Wage confusion leads to lay-offs in Indonesian footwear industry

27/08/2013
Indonesia’s footwear industry association Aprisindo has said its members have laid off a collective of 44,000 so far this year.

The organisation’s president, Eddy Widjanarko, has told local media that the main reason for the lay-offs is a lack of clarity over wages. He said increases in the minimum wage this year, along with higher energy bills, had pushed up production costs.

Aprisindo has said it would like wages to rise in line with inflation with employers able to add an additional 5% or 10% at their own discretion.