abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb

The content is also available in the following languages: 日本語

Article

21 Jul 2023

Author:
Nestle Semilla, INQUIRER.Net

Philippines: Over 4,000 workers at two garment factories laid off due to 'financial constraints' & supply chain issues

"4,000 workers lose jobs in Cebu ecozone", 21 July 2023

At least 4,100 workers in two garment firms at the Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City...have been laid off.

Kim Francisco, head of the city’s Public Employment Service Office...said the city government received reports that the downsizing of workers was necessary amid financial constraints caused by the COVID-19 pandemic, the impact of Supertyphoon “Odette” (international name: Rai) in December 2021 and supply chain issues.

“At the moment, MEPZ’s businesses have dwindled. They have no other option but to retrench some of the workers [in order to survive],” he said.

All affected workers have been assured by the distressed firms that they would receive separation pay in accordance with the law, Francisco said.

The Mactan Export Processing Zone...has two zones—MEPZ 1 and MEPZ 2—both located in Lapu-Lapu City and employ at least 100,000 workers, according to city government records. Most of the business firms are Japanese-owned.

MEPZ 1...hosts approximately more than 100 companies. Among the products being manufactured in the zone are semiconductors, watches, fashion accessories and jewelry, among others. These products are exported mainly to Japan and the United States.

...Like MEPZ 1, most of the products in MEPZ 2 are electronic, automotive and garments that are being exported not only in Japan but also in the United States and other countries.

In 2020, about 4,400 workers at Mactan Export Processing Zone were laid off amid the economic slowdown caused by the pandemic. Two years later, at least 3,000 other MEPZ workers also lost their jobs amid another round of retrenchment.

Timeline

Privacy information

This site uses cookies and other web storage technologies. You can set your privacy choices below. Changes will take effect immediately.

For more information on our use of web storage, please refer to our Data Usage and Cookies Policy

Strictly necessary storage

ON
OFF

Necessary storage enables core site functionality. This site cannot function without it, so it can only be disabled by changing settings in your browser.

Analytics cookie

ON
OFF

When you access our website we use Google Analytics to collect information on your visit. Accepting this cookie will allow us to understand more details about your journey, and improve how we surface information. All analytics information is anonymous and we do not use it to identify you. Google provides a Google Analytics opt-out add on for all popular browsers.

Promotional cookies

ON
OFF

We share news and updates on business and human rights through third party platforms, including social media and search engines. These cookies help us to understand the performance of these promotions.

Your privacy choices for this site

This site uses cookies and other web storage technologies to enhance your experience beyond necessary core functionality.