Workers push for unemployment subsidy as big garments firm to shutdown

Press Release
July 1, 2009

The labor group Partido ng Manggagawa (PM) reiterated its call for a “workers bailout” in the face of the impending closure of the Taguig-based Triumph garments factory and its subsidiary Star Performance on August 28, and Cebu-based Celestica electronics firm on August 31. Triumph and Star Performance are both German-owned with 1600 workers while Celestica is a Canadian-owned factory producing various electronics products in the Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City with 900 employees.

“We call on the government to backtrack from charter revision and instead focus on the economic recession. The closure of Triumph, Star Performance and Celestica and the layoff of a total of more than 2,500 workers belie the claim of DOLE about a rebound in the garments and electronics industry. It is not a slow growth but a sluggish decline that best describes the economy. Unemployment insurance and a bailout of the workers and the poor will put money in the hands of the consumers and revive domestic demand and thus the local economy,” argued Renato Magtubo, PM chairperson.

PM has been pushing for a bailout package for workers in the light of continuous hemorrhage in jobs in export firms. The bailout includes an unemployment subsidy for displaced workers; tax refund for all wage earners; expansion and reform of the public employment program; extension of health care coverage for displaced workers; and moratorium on demolitions and evictions.

PM contends that the economy is practically in recession and thus urgent action must be taken. “Government cannot keep on whistling in the dark and being in denial about the recession. Tens of thousands have lost their jobs and many remain without work. An economic revival can only come about through a policy reversal and paradigm shift in the national development model. The policies of liberalization, deregulation and privatization must be stopped. The local economy must be developed by strengthening industry and modernizing agriculture based on agrarian reform,” insisted Magtubo.

Magtubo furthered that “In the immediate period, the workers of Triumph, Star Performance and Celestica may be able to live off their separation pay. But if they cannot find another job in the next six months then their living standards will suffer in the medium to long-term period. Workers are being made to pay the price of a crisis that is not of their own making.”

“These foreign-owned multinational companies are throwing their Filipino workers like dirty rags after benefiting from their labor all these years,” argued Magtubo.