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Shoe factory workers

Zen Hernandez

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/Shoe-factory-workers.jpg" style="width:950px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">Workers at a shoe factory in Barangay Concepcion in Marikina City perform different tasks in making footwear products on September 27, 2023.  <em>Maria Tan, ABS-CBN News</em></span></span></span></div><p>MANILA — Firms will lay off workers if the planned wage hike pushes through, an industry group warned on Thursday.</p><p>About 23,200 workers in the manufacturing sector lost their jobs in 2023 after 2 consecutive minimum wage adjustments from 2022 to 2023, according to the Confederation of Wearable Exporters of the Philippines (CONWEP).</p><p>This is an 11 percent drop in the number of employed workers as compared to the industry’s 2022 figures of 205,800 workers. Unfortunately, CONWEP expects this trend to continue this year.</p><p>“That’s very alarming, nakakatakot yan, kasi P30 to P50 pa lang yung in-increase namin last year hindi na kinaya. Kasi nga 2022 meron ding P31 to P56 na increase, 2 consecutive eh. Dalawang magkasunod na taon,” CONWEP Executive Director <span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Maritess Jocson-Agoncillo </span>said.</p><p>The problem, according to Jocson-Agoncillo, is that manufacturing, particularly the export sector, has been experiencing several challenges for years. </p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="950" height="534" src="https://www.youtube.com/embed/Xn15S0MayW0?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>Apart from the global pandemic that lasted over 2 years, the Ukraine-Russian war and the recent escalation of the Israel-Gaza conflict have made logistics expensive and problematic, forcing investors to downsize orders, the group said.</p><p>In the Philippines, the export performance for apparel, leather goods and footwear was at $1.7 billion in 2019. It dropped during the pandemic and was already showing signs of recovery in 2022 after posting $1.6 billion, only to drop again to $1.3 billion in 2023.</p><div><a href="https://news.abs-cbn.com/news/2024/2/19/senate-oks-p100-wage-hike-bill-1730" id="isPasted">Senate OKs P100 wage hike bill</a></div><p>According to Jocson-Agoncillo, the industry is projecting another 21,000 workers to lose their jobs this year, even without a wage hike. But with a P100 to P350 legislated wage increase brewing in the House of Representatives, job losses will certainly balloon.</p><div><a href="https://news.abs-cbn.com/business/11/08/23/boosting-manufacturing-seen-as-key-to-higher-gdp-growth" id="isPasted">Boosting manufacturing seen as key to higher GDP growth</a></div><p>“Hindi na namin talaga kaya. Tandaan mo meron silang sister company sa Vietnam, may sister company sila sa Cambodia, may sister company sila sa Bangladesh, meron din sila yung mga investor na ito, ang daling ipull-out yan. Kagabi may kausap akong board director. OK, 100,000 units are being redirected to Vietnam as of this week because of this threat,” Jocson-Agoncillo said.</p><div><strong>SUBSIDY</strong></div><p>CONWEP is requesting a 2-year moratorium on wage adjustments to allow the industry to recover and preserve existing jobs. But at the same time, the industry recognizes the need for workers to have some relief from inflation and is appealing for government intervention.</p><p>The group wrote a letter to President Ferdinand Marcos Jr., the Senate, House of Representatives and the Trade and Labor departments to provide an “inflation subsidy” of P1,000 per month, in two years, for minimum wage earners, similar to the DOLE’s Adjustment Measure Program during the COVID-19 pandemic.</p><p>However, Labor Secretary Bienvenido “Benny” Laguesma explained that, even during the pandemic, the government only provided a one-time assistance or “ayuda” and not a monthly subsidy. Resources will also have to be considered since DOLE’s budget for the said assistance is only P500 million. It is also intended for training, livelihood programs, displaced and disadvantaged workers.</p><p>The P500 million budget will not be enough though for the 4.2 million minimum wage earners in the country.</p><p>But DOLE said it also remains open to the suggestion. </p><p>“Pwedeng humingi, that’s one part of the equation. Ang susunod na mahalaga, meron bang maibibigay, meron bang available na pondo. Pwede na naming pag-aralan, pwede ba nating ma-align o mai-tweak dun sa konseptong sinasabi mo ngayon may kinalaman sa inflation subsidy,” Laguesma added.</p><p>Laguesma clarified, however, that government assistance for workers is already part of ongoing discussions within the economic cluster due to the government’s recognition of the problem of inflation and wages.</p>

<p>About 23,200 workers in the manufacturing sector lost their jobs in 2023 after 2 consecutive minimum wage adjustments from 2022 to 2023, according to CONWEP.</p>

About 23,200 workers in the manufacturing sector lost their jobs in 2023 after 2 consecutive minimum wage adjustments from 2022 to 2023, according to CONWEP.

Industry group says legislated wage hike spells more job losses, investor pullouts

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Industry group says legislated wage hike spells more job losses, investor pullouts

Zen Hernandez,

ABS-CBN News

Published Feb 29, 2024 07:09 PM PHT

Read More:

minimum wage

workers

labor

P350 wage hike

P100 wage hike

Philippines

DOLE

job losses

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