Labor group asks garment exporters group to name brand leaving the Philippines

Retrenched Mactan Apparel worker. Photo from PIO Lapu-Lapu City

 

The labor group Partido Manggagawa (PM) called on the Confederation of Wearables Exporters of the Philippines (CONWEP) to name the global brand which it said pulled its orders from the Philippines. A few days ago, CONWEP Executive Director Maritess Jocson-Agoncillo was quoted in a news story that the unnamed global brand is shifting all its orders to Vietnam and Cambodia.

 

“We ask CONWEP to name the brand so that the 4,000 workers who have lost their jobs can demand an explanation from this multinational company. Corporate social responsibility dictates that global brands be transparent to their stakeholders, especially workers who have been loyally making garments for multinational companies,” stated Dennis Derige, spokesperson of the PM Cebu chapter.

 

Last month, the PESO of Lapu-Lapu confirmed that more than 4,000 workers were retrenched by the factories Mactan Apparel and First Flory. Both are locators in the Mactan Economic Zone (MEZ) in Lapu-Lapu City, Metro City. Mactan Apparel is part of the Sports City conglomerate, the biggest employer in MEZ. Another 4,000 workers were laid off across the different Sports City garment factories at the height of the pandemic in September 2022 and then 4,000 more in September 2020.

 

“While we welcome the assistance of the Lapu-Lapu PESO and the Department of Labor and Employment (DOLE) so that the laid-off workers can engage in livelihood projects, we cannot hide the bitter truth. Shifting from formal regular work to vulnerable, insecure informal work is a huge step backwards. The normative goal is transitioning from informal to formal work. The decent work diagnostics of the DOLE and the International Labour Organization clearly states that for growth to be inclusive, the country needs to increase formal regular employment,” explained Derige.

 

PM has been pushing for a public employment program to generate jobs and a more robust unemployment insurance provided by the Social Security System. “For workers of Mactan Apparel and First Glory, guaranteed public employment is a better option in the short-term to self-employment as home-based workers, which is the livelihood program of DOLE. In the long-term, it is imperative that we have industrial policy that promotes the domestic economy instead of dependence on foreign investments which is footloose and unregulated. As CONWEP themselves admit, global brands can shift their orders on a whim thereby upending the jobs of thousands of workers overnight,” Derige insisted.

Press Release

August 7, 2023

 

Ahead of SONA, labor group slams factory closures at Mactan Export Processing Zone

The labor group Partido Manggagawa (PM) slammed the retrenchment of some 4,100 workers at Mactan Apparel Inc. and its satellite companies. “These are factory closures, not just mass layoffs. Even though the economy is growing, workers are suffering. More than 4,000 breadwinners have lost their jobs and their families will now have to deal with all the difficulties of joblessness,” declared Dennis Derige, spokesperson of the Cebu chapter of PM.

 

He added that “With President Bong Bong Marcos Jr. due to give his State of the Nation Address (SONA) on Monday, we demand of him: Trabaho at bigas sa Bagong Pilipinas! Kung walang trabahong regular and walang murang bigas, bigo ang Pilipinas sa iyong pamumuno.”

 

PM stated that the call for job security, wage hike and cheap prices are among their calls for the counter-SONA protest on Monday. A petition for a P100 minimum wage hike has been filed in Cebu and Bohol. The wage boards have set hearings on the P100 petition on July 26 in Metro Cebu and August 10 in Bohol.

 

Different labor groups are mobilizing hundreds of workers, students and urban poor for the counter-SONA. PM, along with groups SENTRO and Akbayan, will assemble in Plaza Independencia at 8:00 am on July 24. Then they will march onto the Cebu City Freedom Park and finally merge with other organizations for the main program in Metro Colon.

 

Mactan Apparel Inc. and its sister companies, MAI Printing and FIT printing are closing down. The three factories make sportswear exclusively for the global brand Adidas and is part of the Sports City conglomerate, which is the biggest employer in the Mactan Export Processing Zone. The retrenchment at Mactan Apparel is the third wave of mass layoffs at Sports City. Some 4,000 workers were laid off across the different Sports City garment factories in September 2022 and another 4,000 in September 2020 at the height of the pandemic.

 

“We call on global brand Adidas to explain why their supplier factories are closing down. Adidas should step up, be transparent and clarify to workers who made their sportswear why they are losing their jobs. Do not make the usual alibi for not doing anything that your supplier is complying with the minimum standards set by law. If Adidas is indeed a good corporate citizen, then it must exercise responsibility for the loss of livelihood of 4,000 workers,” insisted Derige.

 

PM also argued that the series of mass layoffs and factory closures at MEPZ exposed the vulnerability of a development model founded on foreign investment and export production. “We need a paradigm shift away from export orientation. Economic and social development should be founded on a planned industrial policy that prioritizes domestic production even as it takes advantage of export markets,” Derige explained.

Press Release

July 20, 2023

Ayuda for workers facing layoffs—labor group

 

In the face of an outbreak of mass layoffs, the labor group Partido Manggagawa (PM) called on the government for ayuda for the affected workers. “By ayuda, we do not just mean immediate assistance to the thousands of workers who will become jobless in the coming months but institutionalized social protection for the entire labor force. Sa harap ng epidemya ng tanggalan, ayudang sapat para sa lahat ang sagot,” explained Rene Magtubo, PM national chair and Marikina city councilor.

 

This was the group’s reaction to the estimate by the garments industry association Confederation of Wearable Exporters of the Philippines (CONWEP) that some 9,450 to 10,800 workers may be laid off. CONWEP even forecasted a worst scenario of 27,000 retrenched workers or 10% of the total labor force in the apparel and wearable goods sector.

 

Just two weeks ago, the Sports City group of companies fired some 4,000 workers or one-fourth of its total workforce allegedly due to reduced orders from its clients. Sports City supplies to global garment brands Adidas, Under Armour, Saucony, New Balance and Lululemon.

 

“Aside from the mass layoffs at Sports City, workers also lost their jobs due to the temporary closure of Coca-Cola plants in Iloilo, Bohol, Davao, Cavite, Zamboanga, and Camarines Sur. Employees of Shopee were also fired revealing that retrenchments are along all sectors from manufacturing to services,” Magtubo elaborated.

 

He added that “The worsening economic crisis demands that the government set in place social protection systems that mitigate the impact on jobs, income, health and well-being of people. Social protection is one response to this challenge.”

 

PM is an affiliate of the labor coalition Nagkaisa which at the height of the pandemic demanded public employment, preferably in climate jobs, for unemployed workers over a period of 100 days to nine months at minimum wages or P10,000, whichever is higher. The coalition also called for wage subsidies equivalent to 75% of the prevailing minimum wage to save jobs of workers in micro, medium and small enterprises (MSMEs).

 

“If huge companies like Sports City and Coca-Cola are reeling from economic shocks, what more MSMEs, which comprise 90% of the total number of enterprises. By providing wage subsidies to workers in MSMEs, the government incentives them against shedding their employees. This also protects the purchasing power of workers which enables the economy to float instead of sink due to the crisis,” explained Magtubo.

 

In response to the demand for employment guarantees and wage subsidies by Nagkaisa, the DOLE undertook a study of a social protection floor which has remained unimplemented. “The DOLE should act now and not wait for another Sports City, another Coca-Cola or another Shopee,” Magtubo insisted.

October 14, 2022

Labor groups alarmed at MEPZ mass layoff

 

Labor groups Partido Manggagawa (PM) and Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) expressed their concern at the retrenchment of some 4,000 workers across five factories of the Sports City group of companies.

 

“This is alarming for workers in Cebu and elsewhere. For the biggest MEPZ employer to retrench 1/4 of of its workers may be a portent of worse things to come. What is the response of the government? Don't tell us ‘unity’,” exclaimed Dennis Derige, PM-Cebu spokesperson.

 

Workers of garment firms Mactan Apparels, Inc.; Metro Wear, Inc.; Globalwear Manufacturing, Inc.; Feeder Apparel Corporation; and Vertex One Apparel Phils. Inc.—all owned by Sports City—were affected in the largest termination yet this year. Sports City is the biggest employer in the Mactan Economic Zone and supplies to global garment brands.

 

Both PM and SENTRO said that they will further investigate the claims of Sports City about the “sudden dropping and reduction of orders from our clients.” “We cannot take these claims at face value. In fact, factories traditionally increase their production in the ber months to meet the huge spike in demand during the holiday season. We will seek help from our allies abroad to check the veracity of these claims of diminished orders,” Derige insisted.

Sports City supplies apparel to global brands Adidas, Under Armour, Saucony, New Balance and Lululemon. 

 

He said that workers were caught off guard by the mass layoff. He explained that “There was no social dialogue between the employer and the employees. A better option is that negotiations transpire between employer and employee representatives so that workers have voice and participation in the basis and terms of the termination.”

 

Last year, unions were formed at Mactan Apparel, Metro Wear and Globalwear but were defeated in the certification election. PM had slammed the companies for delaying the elections for almost half a year even as an anti-union campaign was conducted using social media.

 

In the face of the mass layoff at the MEPZ and other companies, PM and SENTRO also called on the government to heed the demand for employment guarantees. The proposal of the labor coalition Nagkaisa calls for public employment, preferably in climate jobs, for unemployed workers over a period of 100 days to nine months at minimum wages or P10,000, whichever is higher. In response to this demand, the Department of Labor and Employment undertook a study of a social protection floor which has remained unimplemented.

 

“It is high time that the employment guarantee and other social protection mechanisms are enacted,” Derige ended

September 30, 2022

MEPZ strike averted, workers to file case instead

 

A strike at the Mactan Economic Zone has been averted after several weeks of mediation led by Lapu-Lapu City Mayor Ahong Chan. Though the strike notice has been withdrawn, 76 workers of the garment factory First Glory Philippines will pursue their demands by filing a case for illegal dismissal and union busting. Last December, the First Glory labor union filed a notice of strike and later members voted yes to going on strike.

 

“The union is now preparing to file a case at the National Labor Relations Commission and with the assistance of Partido Manggagawa (PM), we are confident of winning our complaint for illegal dismissal and union busting,” explained Cristito Pangan, president of the First Glory labor union.

 

The labor dispute at First Glory started with the firing last November 27 of 300 workers, including the union president and other union officers. At the time of the mass layoff, the union had a pending petition for certification election. A rally of terminated First Glory workers last November 30 was broken up by police and led to the arrest of five labor organizers. The so-called MEPZ 5 were later released as their cases for “disobedience to person in authority” were dismissed.

 

“Aside from filing a case, the union is also preparing for the certification election scheduled on February 15. The union has been key in fighting for the jobs of the 76 workers who refused to accept the retrenchment. The victory of the union in the election will also be important in improving the wages and working conditions of the remaining 700 workers of First Glory,” Pangan insisted.

 

The union is arguing that there the mass layoff is illegal as its main customer, the US brand J.Crew, has already exited from bankruptcy in September. “The labor dispute at First Glory is symptomatic of the epidemic of labor rights violations during the time of covid. Employers are weaponizing the covid-19 crisis to bust unions and violate labor standards,” Pangan declared.

 

The firings at First Glory comes on the heels of mass layoffs at other garment firms in the Mactan ecozone. Earlier the Sports City group of companies retrenched 4,000 workers, Yuenthai fired 200 workers, FCO International laid off 100 workers and Kor Landa dismissed 67 workers including the union officers. The Department of Labor and Employment (DOLE) has announced that half of the 428,071 workers reported as laid off last year were fired in the last quarter of 2020. Meanwhile the DOLE has put in abeyance four petitions for certification elections at three Sports City factories due to an appeal by management. PM has slammed this as an existing rule prohibits delays in elections due to management appeals.

February 1, 2021

Workers slam suspension of union elections at biggest Mactan Ecozone firm

 

The labor group Partido Manggagawa slammed the suspension of the proceedings for certification election at three Sports City factories at the Mactan Economic Zone (MEZ). The Sports City group of companies employs some 14,000 workers and is the biggest employer at the MEZ.

 

“Sports City is using legal maneuvers to subvert the workers’ exercise of freedom of association and yesterday it succeeded in delaying the holding of an election at three of its factories on the basis of an appeal to the office of the Labor Secretary. We call on the Department of Labor and Employment (DOLE) to implement the law and the rules which absolutely guarantee the holding of a certification election despite an appeal by the employer,” stated Dennis Derige, PM-Cebu spokesperson.

 

In a pre-election conference yesterday, the DOLE officer handling the petitions for certification election announced that the proceedings are held in abeyance pending the appeal to the Office of the Labor Secretary. Petitions for certification election by rank-and-file unions in Metrowear, Globalwear and Mactan Apparel, and a supervisory union in Globalwear were earlier granted and objections by management dismissed.

 

Derige added that “The certification election at Sports City is a test case for the respect for freedom of association in the ecozones. In MEZ not a single union exists with a collective bargaining agreement due to the pernicious union busting efforts of capitalists. This has led to wage stagnation for workers despite decades of economic growth and productivity rise.”

 

Aside from the four petitions in Sports City, another petition for certification election is pending at First Glory Philippines. All the unions formed at Sports City and First Glory are affiliated to PIGLAS-SENTRO. A labor dispute has erupted at First Glory after the mass layoff of 300 workers, including all of the union officers, last November 27. Last December 22, members of the First Glory labor union voted overwhelmingly to go on strike.

 

“First Glory management has taken a hardline position in all mediation meetings despite being unable to substantiate its claim of losses. We demand that First Glory reinstate all 300 workers that were retrenched as this was done in bad faith and for the purpose of busting the newly-formed union,” declared Cristito Pangan, president of First Glory labor union.

 

The latest mediation hearing yesterday, attended by no less than Lapu Lapu City Mayor Junard Chan, on the First Glory dispute again ended without any agreement. Workers in the Mactan Ecozone have been hit by a series of job losses: Sports City retrenched 4,000 workers, Yuenthai fired 2000 workers, FCO International laid off 100 workers and Kor Landa dismissed 67 workers including union officers.

 

PM however believes that “The mass layoffs and labor disputes at First Glory, Sports City and Arcya Glass in Calamba, Laguna are all symptomatic of the epidemic of labor rights violations during the time of covid. Employers are exploiting the covid-19 crisis to bust unions and shift to contract work.”

January 5, 2021

P10k quarantine pay asked as ecozone, businesses close in Cebu

Photo by SunStar

The labor group Partido Manggagawa (PM) called on employers to grant paid quarantine of P10,000 per month to workers to be affected by the impending closure of businesses in the province and city of Cebu, and the Mactan ecozone in Lapu-Lapu. “Local employers and foreign investors should shoulder temporary losses due to the covid pandemic,” asserted Dennis Derige, PM-Cebu spokesperson.

The province of Cebu is imposing a lockdown starting tomorrow while Cebu City is doing so on Saturday and Lapu-Lapu on Sunday. The shutdown of the Mactan Economic Zone (MEZ) alone will lead to the loss of jobs of some 100,000 workers.

“There are already a number of locators in MEZ that are closing ahead of Sunday and all are throwing workers out of work without paid quarantine except for Fairchild Semiconductor (Philippines) Inc. which gave wages for the next 20 days that employees will be out of work. Even a giant garments company that supplies to global brands is refusing to give quarantine subsidy to some 17,000 employees and instead is applying for the DOLE assistance for formal workers. This is a giant company that can very well afford to bear losses by granting quarantine subsidy.” Derige explained.

He added that “Employers, including tourism businesses, have benefited from recent economic growth without sharing the bounty with their workers. This was revealed in a Department of Finance study showing labor productivity grew by at least 50 percent, yet real wages were stagnant from 2001 to 2016. Moreover, foreign investors in the ecozones enjoyed tax breaks and other privileges for years. Now that there is a crisis, employers are morally obliged not to pass on the burden to their hapless workers.”

Derige insisted that “We cannot accept that workers are the last to benefit from economic progress but the first to sacrifice in time of crisis.”

The group is proposing the following mitigation measures to lessen the impact of covid on workers and the people:

1.      Living pension for senior citizens since the elderly are more prone to infection;

2.      Shift build-build-build budget to health in order to build more hospitals, provide testing and treatment facilities, hire more health workers;

3.      Health tax on the wealthy—as part of CITIRA—to fund universal health care.

March 26, 2020

Cebu union complains of unfair labor practice as workers vote in historic certification elections

Press Release
September 7, 2009

The newly formed union at the Alta Mode garments factory in the Mactan Export Processing Zone (MEPZ) complained of management’s unfair labor practice as workers vote today whether to certify the Alta Mode Workers Union (AMWU) as the sole and exclusive bargaining agent of rank-and-file employees. If AMWU wins in the certification elections, they will be the first successful union in MEPZ.

More than 100 workers, practically all of them union members including all union officers were put on forced leave effective today, just in time for the certification elections. Alta Mode makes clothes under world-famous brands like Adidas, Reebok and Abercrombie & Fitch. Last March, Alta Mode workers successfully protested against excessive production quotas and illegal reduction in working days. Since then they have formed and registered the AMWU to protect their rights and advance their welfare as employees.

Renante Pelino, AMWU president, stated “Management hasty decision to put half of the workforce and almost the whole of the union on forced leave without even a notice with the Labor Department is evidently meant to harass and intimidate the workers against voting for the union. The Labor Code clearly provides in Article 248 (e) that it is unfair labor practice to discriminate in regard to wages, hours of work, and other terms and conditions of employment in order to encourage or discourage membership in any labor organization.”

Despite management’s unfair labor practice, Pelino declared that AMWU is ready for today’s certification election that will start in this morning and end by 3 p.m. “The union is confident that Alta Mode workers will not be frightened by management’s scare tactics. Workers will assert their rights to choose a union so that they will have a voice and representation in the company. We hope to break new ground and be the first union to be certified inside the MEPZ,” he affirmed.

Dennis Derige, spokesperson of the Cebu chapter of Partido ng Manggagawa (PM), insisted, “No union presently exists within the MEPZ despite being in operation since 1979. Although the Labor Department and the export zone administration keeps denying it, everybody knows that they try to keep MEPZ a non-union zone in order to attract and maintain foreign investors. But without unions to defend them, MEPZ workers are victims of rampant infringement of labor standards and workers rights.”

PM also decried the fact that the unfair labor practice at Alta Mode is the second incident in as many weeks of violation of the right to self-organization. Last week, the Sports City conglomerate of four garments firms in MEPZ retrenched 1,000 employees including Jose Pelino, a worker leading the organizing efforts. On the day that Pelino was dismissed, three motorcycles tailed him as he left the factory, got out of the MEPZ and went to his home in Sitio Gabi, Lapu-Lapu City.