18 May, 2015Holcim announced layoffs in Indonesia on 8 May. The union is convinced the company did not act according to the agreed procedure and agreements.
Holcim, one of the world’s major cement companies, is going through a merger process with another huge cement producer, Lafarge. Holcim shareholders have already approved the merger at their extraordinary annual general meeting.
IndustriALL Global Union, Building and Wood Workers’ International and European Federation of Building and Woodworkers have a joint international campaign “No merger without workers’ rights”, seeking to secure workers’ rights and interests during and after the merger.
A number of activities including protest actions and information distribution were part of the campaign. Both companies were recently shaken by a global wave of protests on 28 April, where unions in different countries demanded an improved occupational health and safety policy within Holcim and Lafarge.
In late April, the union representing workers of Holcim Indonesia and the company made an agreement on voluntary early retirement. However, neither this nor another agreement proposed by the company and approved by the union with an early retirement scheme for all workers between 53 and 55, has ever been implemented.
Instead, Holcim has without further consultation with the union unilaterally decided to fire all workers under 45. The layoffs would affect 350 workers out of 2,600 employees of Holcim Indonesia, or more than 10 per cent of all Holcim workers in Indonesia.
The company announced the layoffs after Indonesia division of Holcim faced a decrease in net profit to Rp 33 billion (US$2.51 million) during the first quarter of 2015.
According to the trade union despite an unfavourable conjuncture in the local market the company was experiencing normal conditions with no financial evidence of bankruptcy from public accountants.
Holcim Indonesia workers have received strong solidarity support from their brothers and sisters at Lafarge Indonesia.