Lapu-Lapu City – Around 4,000 workers from five clothes manufacturing industry at the Mactan Economic Processing Zone (MEPZ) were retrenched after firms cited global recession as the reason for downsizing.
Among the firms who implemented a retrenchment program, were Mactan Apparels, Inc.; Metro Wear, Inc; Globalwear Manufacturing, Inc.; Feeder Apparel Corporation; and Vertex OOne Apparel Phils. Inc.
According to their joint statement released yesterday, “As the world is now on the brink of global recession, with higher-than-expected inflation and the global financial conditions are becoming tighter, our business and that of our customers are not an exemption especially being classified as a non-essential luxury product,”
The statement further stated that their financial health was also affected by the COVID-19 pandemic, the onslaught of super typhoon Odette, supply chain issues, increasing gas prices, and the conflict war between Russia and Ukraine, which resulted in their unstable operations.
“The sudden dropping and reduction of orders from our clients while increasing operational costs left us to face head-on to deal with the economic struggles and financial shortage; thus, our company perceived objectively and in good faith the need to downsize our current manpower through a retrenchment program,” it explained.
It further stated that the retrenchment program will also help to keep their business afloat and continue the employment of 75 percent of their workforce.
There are more than 18,000 workers from the five firms.
The affected workers shall receive a separation pay in accordance with the law.
Lapu-Lapu City Mayor Junard “Ahong” Chan, issued an advisory to affected workers to register at the Public Employment Services Office (PESO) and submit a resume.
“They will be prioritized once there will be job openings in other firms and agencies,” Chan assured.
The city through PESO recently conducted a job fair where more than 3,000 job vacancies were opened to qualified applicants.
Chan said that would again conduct another “Fiesta Job Fair” for jobseekers on November 18, 2022.
