Unemployed workers in CEBU have called for the Confederation of Wearables Exporters of the Philippines to reveal the names of global apparel companies that are no longer doing business with the Philippines.
Partido Manggagawa Cebu (PM), in a letter sent to SunStar Cebu Monday, August 7, 2023 said Conwep’s executive director Maritess Jocson Agoncillo mentioned that an anonymous global brand had shifted its entire order to Vietnam and Cambodia.
Dennis Derige is the spokesperson for PM Cebu. He said Conwep had to name this brand so that the garment factory workers in Mactan Apparel (Mactan Economic Zone) and First Flory located in Lapu Lapu City, who were laid off in July 2023.
“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,” said Derige.
Derige told SunStar Cebu that in an interview with the newspaper on Monday, affected garment workers should be able to demand explanations as to why their employers have decided to lay off workers despite consistent production, constant shipment and times when they were required to do overtime work due to high demand for export goods.
Derige claimed that the global brand did not make any explanations or statements to the laid-off workers who had questioned its transparency and accountability.
It will serve as a warning to the government and in particular to the Philippine Economic Zone Authority (PEZA), the Department of Trade and Industry(DTI), and Department of Labor and Employment, (Dole), to create a safety-net that protects the interests of global investors and workers.
High salaries
Derige said that Jocson Agoncillo, a reporter, told her on 1 August that she had informed a large European company, whom she would not identify, that it was no longer ordering garments made in the Philippines, but instead using the low-cost labor of Vietnam or Cambodia.
Jocson Agoncillo, a representative of the clothing company said that the Philippines pays its workers a minimum wage between $6 and $7 as opposed to neighboring countries which pay around $6 or $7.
Around 4,800 to 6,000 workers across the country were affected due to the said pullout, which had also upset the nation’s annual $200 million to $300 million revenue from potential exports, the Conwep official added.
FTA between PH and EU
Jocson Agoncillo also said the lack of free trade agreements (FTAs) between the Philippines at that time and the European Union had a negative impact on orders.
According to DTI, the average export tariff on wearables is 12.5%.
Philippines and EU are in discussions for a possible resumption to the PH/EU FTA. Ferdinand Marcos Jr. has already had a meeting with Ursula von der Leyen of the European Commission on July 31.
Jocson Agoncillo stated in a DTI release that the FTA would have an enormous impact by strengthening and reducing garments tariffs. This will contribute to growth in the industry.
In a news report from the Philippine News Agency on Aug.1, the Conwep official also said that if the PH-EU FTA resumes, the country’s garments, textiles, footwear, and bags will have the largest surge in exports to Europe.
The industry could reach an export worth of $900 to $1 billion from just the European market in three or four years, while adding 100,000 to 200,000 new jobs.
Over 260,000 people are employed in the apparel industry.
The Philippines’ major wearables export markets are the United States, Japan, and the European market, yet the revenue from the entire share of the Europe market stands only at 7.5 percent.
Jocson-Agoncillio said the local industry must enhance its value chain, particularly in textile mills for the country to maximize the benefits of the possibility of the PH-EU FTA which will also increase investments in the country’s garments and textile industry.
Other jobs available
The 4,000 workers who were retrenched still struggled to find another job. Derige revealed that many of these workers chose to be food couriers or work in the habal-habal industry.
“While we welcome the assistance from the Lapu-Lapu Public Employment Service Office and Dole so the laid-off workers can engage in livelihood projects, we cannot hide the bitter truth (that) shifting from formal regular work to vulnerable, insecure informal work is a huge step backward,” said Derige.
Derige reports that these retrenched employees received their separation payments from the factories as early as last week.
According to Dole 7’s Facebook post, Dole 7 Director Lilia Estillore said the agency will conduct a project proposal writeshop among the affected workers to provide them with opportunities and avail themselves of Dole’s livelihood programs.