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🇮🇩 Indonesia /Economy & Trade

PT Victory Apparel Workers Accuse Manpower Office of Bias in Severance Dispute

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • 367 workers at PT Victory Apparel in Semarang are demanding severance pay equivalent to one month's salary per year of service, rejecting the 0.5 multiplier offered by the company.
  • The workers accuse the Semarang Manpower Office of siding with the employer, citing assurances that legal challenges would result in defeat for the employees.
  • Despite a visit from a presidential advisor, the company remains firm on its severance offer, with further mediation scheduled.

A group of 367 workers at PT Victory Apparel in Semarang are locked in a dispute over severance pay, demanding compensation equivalent to one month's salary for each year of service. They are rejecting the company's offer of 0.5 times the statutory amount, as stipulated by Government Regulation (PP) Number 35 of 2021, a derivative of the Job Creation Law.

Now there are 367 union members asking for justice (severance pay) 1 times the PMTK from our work period which averages over 19 years. Besides that, we hope for a goodwill payment from the company.

— LusiatunLusiatun, head of the PT Victory Apparel Semarang Workers' Union, explaining the workers' demands.

Lusiatun, the head of the PT Victory Apparel Semarang Workers' Union, stated that 205 workers have already accepted the company's severance offer of 0.5, despite having worked for 10-20 years. These workers reportedly feared the foreign owner might abscond without fulfilling obligations if they delayed acceptance. Lusiatun highlighted that the union members, with an average of over 19 years of service, are seeking a 1x multiplier for severance pay and an additional 'goodwill' payment.

The Manpower Office also said that if it were taken to the PHI (industrial relations dispute), the workers would definitely lose.

— LusiatunLusiatun describing the advice received from the Semarang Manpower Office.

The workers feel unsupported by the Semarang City Manpower Office, which they claim advised them that pursuing the matter through the Industrial Relations Court (PHI) would lead to their defeat. Lusiatun expressed disappointment, stating the office appears to favor the company over the employees.

They seem to lean towards the company.

— LusiatunLusiatun expressing her perception of the Semarang Manpower Office's bias.

Adding to the workers' concerns, a recent visit from Said Iqbal, Special Advisor to the President for Labor Affairs and Welfare, did not yield any change in the company's stance. PT Victory Apparel remains committed to its 0.5 severance offer. The workers are scheduled for mediation at the Manpower Office on Tuesday, August 4, 2026, where they will reiterate their demand for a 1x severance multiplier. They remain prepared to pursue legal action if their demands are not met.

I hope our demands can still be heard.

— LusiatunLusiatun expressing her hope for a resolution.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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