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How Companies Can Prevent Layoffs, Chamber of Commerce Deputy Explains

The Indonesian Chamber of Commerce and Industry (KADIN) deputy Adi Mahfudz Wuhadji on Wednesday said that mass layoffs can be reduced by putting forth bipartite communication between business owners and workers. This, he said, would enable both parties to collectively understand a company’s limit in paying workers’ wages. 

“In addition, workers or laborers should also continue to strive to increase work productivity so that it can be achieved at the actual wage level in accordance with their competence,” Adi told Tempo, Wednesday, November 9.

Adi believes that companies and workers should be two sides of an inseparable coin to continue running in good faith. That way, the company’s capabilities can be adjusted to the limits of the production process capability.

If the company’s performance weakens, Adi explained, there are solutions other than layoffs that can be applied which can be done by reducing wages and non-essential worker facilities. Reducing work shifts, reducing working hours, or eliminating overtime hours.

“The government also needs to continue to be fully present in the process of mentoring and monitoring as well as providing long-term strategic policies. It provides certainty of protection for employers and workers so that business continuity and work continuity can be maintained,” said Adi.

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