What Is with No-Work-No-Pay Principle Proposed by Apindo?

Wage gap
Summary

Employers urge Manpower Minister Ida Fauziyah to issue a regulation on the no-work-no-pay principle. Indonesian Footwear Association (Aprisindo) chairman Eddy Widjanarko argued that the regulation could reduce the number of layoffs (PHK) in labor-intensive industries. "There is a way out, we can only pay based on prorate working hours," Eddy said on Wednesday.

According to Eddy, shoe brands like Nike and Adidas are currently experiencing sales difficulties, the first in 30 years of business. Orders usually increase by 10 to 30 percent per year, but now they go down by 50 percent. "Several countries, such as Vietnam and China, proposed the reduction of working hours from 40 hours per week to around 25-35 hours per week. We did this months ago," he said.

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