The Covid-19 crisis has caused economic and labor market shocks, especially in the Indonesian Garment and Footwear Sector. The pandemic has affected a large number of factories, not only in terms of supply (production of goods and services) but also demand (consumption and investment).
Based on data from the Indonesian Textile Association (API) in May 2020, restrictions related to COVID-19 have (temporarily) stopped the operations of 80 percent of textile and textile product companies in Indonesia. A large number of factories face permanent closures due to slumping domestic and export demand.
More than 130 export-oriented garment factories registered with the ILO’s Better Work Indonesia program have been affected. Manufacturing areas in Jakarta and West Java were forced to close or reduce working hours / working days, because workers were required to stay at home or orders from international buyers were stopped or reduced.
As a result, this has an impact on many workers, especially women, who do not have any source of income. The total number of workers affected is more than 130,000. Most of these workers are on leave, and see their wages reduced, delayed, or in ‘no work – no pay’ situations. This crisis situation prompted the government, employers and workers to to overcome the impact of Covid-19, through social dialogue between Indonesian employers and workers.
The result is the Joint Commitment of the Indonesian Garment and Footwear Workers’ Federation consisted of 4 federations: GARTEKS, SPN, TSK SPSI and TSK KSPSI together with 3 employer associations: APINDO, API and APRISINDO in the midst of the COVID-19 Crisis. The theme for this social dialogue is “Collaboration to Protect Occupational Safety and Health, Business Sustainability and Export Prosperity – Oriented to Workers in the Foot of the Garment and Footwear Sector in Indonesia”. The social dialogue marked with a virtual signature was held on Thursday, August 6, 2020.
One of the participants from the Indonesian workers’ federation, the General Chairperson of KSBSI, Elly Rosita, said that this moment was what the workers had been waiting for. Elly said the Covid-19 crisis had a big negative impact on workers. Thus, social dialogue is an important step in determining common strategies in dealing with crises, so that the negative impact on workers does not drag on.
From the international workers’ federation there was a representative from ITUC Asia Pacific, Shoya Yoshida. Shoya said that it takes joint efforts and work to protect workers amid the pressure of the Covid-19 crisis. Shoya also highlighted the health and safety issues of workers during the pandemic, as well as finding a way out of the economic crisis.
Meanwhile, from the International Organization of Employers (IOE), Mathias Thorns expressed his respect and congratulations for making a joint commitment to overcome the impact of Covid-19 for employers and workers.
This commitment adopts a collaborative approach to protect occupational safety and health, business continuity and the welfare of workers in the export-oriented garment and footwear sector in Indonesia. This global action also calls for work on sustainable social protection systems for a better future of work.
