Workers in export zones asking brands to facilitate reinstatement to work

 

Millions of workers in the Philippines were affected by one of the longest lockdowns imposed anywhere in the world. More than six months after the start of the lockdown in the middle of March this year, an untold number of workers remain either of forced leave or on floating status since they have not been allowed to return to work.

 

In many cases, workers in the export processing report that the companies are already operating but their positions have apparently been taken over by new hires or by contract or agency workers. This means that companies have taken advantage of the covid-19 pandemic to cheapen labor cost by exploiting new hires and non-regular workers.

The labor law in the Philippines only allows workers to be put in floating status for a maximum of six months. Beyond six months, workers must be reinstated or paid separation pay. A new administrative rule released by the Labor Department controversially extends the floating status to one year but with the proviso that workers must agree to the extension. This means, if workers do not agree to extend the six-month floating status then they can still file complaints at the Labor Department. Labor groups in Philippines are calling for the repeal of this new rule as it unfairly disadvantages workers and is contrary to law.

Among those seeking redress of this grievance over being put on floating status for more than six months are workers in two companies, one in the Freeport Area of Bataan (an export zone) and another in the industrial province of Cavite.

 

A group of workers in the quality control department of FPF Corporation, located in the Freeport Area of Bataan, are preparing to file a complaint for constructive dismissal since they have not been reinstated after the lapse of six months on floating status. They are also calling on brands for assistance in remediating their grievance. FPF Corporation produces luxury bags for global brands Brahmin, Fossil, Michael Kors and Kate Spade. As of the moment, Brahmin is the main customer of FPF but on occasion, the factory also makes bags for Coach if its sister factory FCF Corporation has excess orders.

Meanwhile some 50 workers of Rainbow 21 in Imus, Cavite have filed cases of illegal closure, illegal dismissal and labor standards violation (under payment of wages, overtime and holiday pay and non-remittance of social security contributions). The factory shutdown at the height of the lockdown but instead of reopening, workers learned that machines were taken out and relocated in an attempt at runaway shop. Rainbow 21 produced for US brands "Amy Byer," "By and By Girl" and "BCX Girl" before the factory unceremoniously closed down without giving the last salary and other benefits, including separation pay. Rainbow 21 was formerly named Dong Han Philippines Inc. and the Korean owner apparently has a penchant for closing down and changing names to avoid accountability to its workers.