Thursday, October 13, 2022

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

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