CEBU – Four manufacturing factories based in Mactan Export Processing Zone (MEPZ) in Lapalapu City here have retrenched some 4000 workers.
The displaced workers come from Mactan Apparels Inc , Metro Wear, Inc., Globalwear Manufacturing Inc., Feeder Apparel Corporation and Vertex One Apparels Phils. Inc.
In a joint statement, the companies see “the need to downsize” manpower to survive, the effects of the global recession, high inflation, and tight financial conditions. Only 75% of the four companies’ workforce remains.
This is a result of a “sudden drop and reduction of orders” from customers amid increased operational cost, the statement said.
Aside from the pandemic, the companies said Typhoon Odette also affected their supply chain, resulting in skyrocketing production costs especially on gas prices brought by the war between Russia and Ukraine.
The companies assured that retrenched employees will receive separation packages in accordance with the law.
“For those affected workers, the Management has always been grateful for the contributions you have shown to the company,” the statement said.
They assured that once the global economy and the companies have recovered, they will reemploy displaced workers.
Kim Francisco, head of the Lapulapu City Public Employment Services Office (PESO) said the retrenchment is the biggest compared to 3,000 last year.
Francisco told reporters that manufacturing companies will soon hire workers again after a few months when it’s already production season. – Ryan Christopher J. Sorote