KSPI: Unextended Wage Subsidy May Lead to Massive Layoffs
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2 February 2021 17:48 WIB
TEMPO.CO, Jakarta - The Confederation of Indonesian Workers Unions (KSPI) president Said Iqbal asked the government to resume the wage subsidy program to help maintain the purchasing power of workers.
Iqbal also hoped the target recipients for the program would be expanded, including for workers who were not registered with the Workers Social Security Agency (BPJS Ketenagakerjaan) so that more workers could obtain the subsidy.
“KSPI predicts massive layoffs of million workers from all industrial sectors including the steel and cement industries,” said Iqbal in a written statement on Tuesday, February 2.
With cash assistance, workers and their families will have a buffer to survive, particularly amid the ongoing pandemic. KSPI, he added, would send a letter to President Joko Jokowi Widodo on the matter.
Manpower Minister Ida Fauziyah previously said she was waiting for the decision of the Covid-19 Handling and National Economic Recovery Committee (KPC-PEN) on the continuation of the subsidy program for workers who earn less than Rp5 million per month.
“The Manpower Ministry has not been assigned to distribute wage subsidy again, we are following the decision of the PEN Committee,” Ida told Tempo on Monday, February 1. However, Ida added the program was not listed in the 2021 PEN budget.
Read: KSPSI Distributes Rice to Workers Dismissed during COVID-19 Pandemic
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