Chairman of the Indonesian Employers Association (APINDO) complained of job cuts by employers every day, especially in labor-intensive industries. The step was taken to avoid the rising provincial minimum wage (UMP).
"Many labor-intensive companies reduce hundreds of employees in stages. They will not announce the reduction of workers, because they are embarrassed," said Sofjan, Monday (03/18/2013).
Ironically, the shrinking number of factory workers or employees may be substituted or replaced using engine power.
According to Sofyan, adjustments Provincial Minimum Wage (UMP) was not accompanied by an increase in the productivity of the workers.
"Because the government is too protective, it is better to use the machine to change employers than add workers. So they do not want to open new vacancies, but the old workers will be retained," he continued.
Sofjan admitted, he had not yet received news related advanced suspension UMP requested by a number of labor-intensive firms.
"There is absolutely no news of anything. Reduction employees and replace them with machines will increase unemployment," he said.
As is known, the Minister of Manpower and Transmigration Muhaimin Iskandar has been revealed as many as 47 companies have been approved by withholding payment of provincial minimum wage (UMP) in 2013 from the governors of their respective regions.
The number of companies are part of a total of 941 companies that filed UMP delays for this year.