Associations on behalf of a number of labor-intensive industries, hard hit by current series labor unrest and bullying of their workers, are demanding tougher law enforcement procedures in opposition to illicit activities by unions hold potential to mar the country's economy and image on the global level.
Traders association is planning to sue the labor unions involved. Yudhi Komarudhin, Secretary-General, Indonesian Footwear Association conveyed that the violent labor rally on May 3, 2006 had compelled a number of European investors reschedule placing repeat orders until they see settlement to the labor unrest.
Due to the recent labor unrest, European countries have postponed placing fresh orders and have replaced supplies from China and Vietnam, said Yudhi.
Indonesia's shoe industry now has a big opportunity to increase exports to Europe after the European Union imposed anti-dumping measures against Vietnam and China.
Companies from Italy, Britain and France have reiterated that they will delay the orders due to the latest incident, he said.
Ernovian G Ismy, the secretary-general of the Indonesian Textile Producers Association, expressed similar concerns, saying that he received reports from foreign investors in the textile fiber industry of employees being forced to lay down tools by union activists.
He added that failing to deliver on time would result in penalties being imposed by purchasers.
Yudhi said that the footwear association had received reports that five shoe producers had been forced to halt operations during the labor protests.
Elsewhere, Ernovian pointed out that his association planned to sue the labor unions accountable for the threats of workers at a number of factories.
Indonesia's total export of textile products grew by 10.5 percent from US $7.6 billion in 2004 to $8.4 billion in 2005. The union says that exports will further increase to $9 billion in 2006.
marketing@alchempro.com
