Press Release
January 26, 2009

Tally of layoffs to reach over 100,000 during the first quarter
Reintegration of displaced OFWs and local employees in the workforce should be government's priority, says Villar

Nacionalista Party President Senator Manny Villar today cited the need to create a reintegration plan or package for displaced Filipino workers here and abroad in view of the continuous announcements of layoffs of workers in various companies.

"We must do everything possible to save jobs and create new ones. The global economic slowdown is beginning to be felt here in the form of factory closures and lay-offs of many workers. Government should waste no time in helping retrenched workers through various safety nets, including access to credit for those who want to engage in entrepreneurship," Villar said.

Referring to media reports, Villar cited that the tally of layoffs could easily exceed 100,000 before the end of the quarter. "Based on news reports alone, total layoffs as of the last quarter alone is nearly 50,000. A labor group in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) area also announced that they could lose their jobs by the first half of this year. The statistics have really reached alarming levels."

Media reports cited that a number of companies, particularly in Calabarzon and Metro Manila have implemented various forms of retrenchment such as actual layoffs or retrenchment and/or reduction of working hours. Industries that are affected include garments manufacturing, semiconductors, electronics, furniture manufacturing among others.

According to Villar, recommendations of labor groups and economists for the government to earmark a portion of the P330-billion stimulus package for jobless Filipino workers is well and good, but should be supported by more long-term or permanent solutions.

"Such bailout plan will help over the short term, but at the end of the day, they are mere dole-outs. Job creation and livelihood opportunities are really the long-term solutions. In a couple of months, its graduation time and these displaced workers would have to compete with fresh graduates for jobs," Villar said.

Villar called on the Department of Labor and Employment (DOLE) to mobilize the services of the reintegration facility for returning OFWs as well as their families.

Villar earlier filed the Overseas Filipino Investment Bill or Senate Bill 635, which seeks to promote the reintegration of OFWs in the Philippine society by helping them save, invest and engage in business ventures that would translate their hard-earned money into economic gains of the country and to create a new generation of overseas Filipino investors or OFIs.

Besides fuss-free procedures and risk-free opportunities, Villar's bill proposes the issuance of short and long-term OFI bonds by government banks; provision of government financial institutions (GFIs) of credit facilities for OFIs; the allocation of 10% of the total equity of governments existing businesses or enterprises for OFIs and their families; among other benefits and incentives such as income tax exemptions.

Tally of Layoffs

Company Form of Retrenchment
Ford Group Philippines Inc. - Laguna September 2008: The car company laid off 29 workers last year as part of the company's plan to undertake a 15% cut in fixed costs.
Daeyoung - Cavite Export Processing Zone September 2008: At least 1,000 workers were laid-off after the firm merged with Greever, another garments firm which absorbed only 500 of Daeyoung's workforce.
Amkor Technology September 2008: 3,000 female contractual workers laid off and 2,000 more scheduled in February 2009
Daijen - Cavite Export Processing Zone October 2008: Retrenched 400 workers after it was absorbed by Jeonlim, another garments firm.
Woo Su - Cavite Export Processing Zone October 2008: Closed shop due to insufficient orders from clients.
Phils Star - Cavite Export Processing Zone October 2008: Closed shop due to insufficient orders from clients.
SCW - Cavite Export Processing Zone October 2008: Reduced work week.
DO Apparel - Cavite Export Processing Zone October 2008: Reduced work week: work is only for three days a week.
Headline - Cavite Export Processing Zone October 2008: Reduced work week: 5 days from the normal 6 days.
American Power Conversion - Cavite Export Processing Zone November 2008: Reduce work week: 4-5 day from the normal 6 days. The company has also laid off an undisclosed number of workers.
Texas Instruments - Baguio City December 2008: 392 workers from different divisions laid off. A second wave of layoffs is scheduled this year.
Lear Automotive - Cebu December 2008: At least 100 workers were reportedly dismissed.
Integrated Microelectronics Inc. December 2008: 3,000 contractual workers laid off and forced leaves to more than 1,000 regular workers.
Maitland Smith Ltd. - Cebu January 5, 2009: The company retrenched at least 260 workers.
Taiyo Yuden - Cebu January 5, 2009: At least 15 workers were reportedly discharged.
Giardini del Sole Inc. - Cebu January 5, 2009: About 250 workers were reportedly dismissed by management.
Accenture - Metro Manila January 16, 2009: The outsourcing company implemented a redundancy program, which affects three percent of its workforce in the Philippines or approximately 500 workers out of a total headcount of more than 16,000 employees.
Intramuros Administration - Manila January 17, 2009: 44 contractual workers lost their jobs due to insufficient funds
Various electronics and automotive parts export companies - Laguna TechnoPark January 21, 2009: A major labor group reported that some 35,000 workers may lose their jobs in the Laguna Technopark due to the impact of the global slowdown.
Intel Corporation - Cavite January 22, 2009: Intel announced that it is closing its manufacturing plant in General Trias, Cavite and is offering severance packages to 1,800 employees.
Various companies in Calabarzon area (Cavite, Laguna, Batangas, Rizal and Quezon) January 24, 2009: Workers' organization Pagkakaisa ng Manggagawa sa Timog Katagalugan-Kilusang Mayo Uno (Pamantik-KMU) announced that 40,000 workers in Calabarzon areas could lose their jobs by the first half of the year.

 

 

 

 

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