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23 Jul 2023

Rico Osmeña, Daily Tribune

Philippines: Factories close due to high production & logistics cost leading to retrenchment of workers

"2 ecozone firms close, 4,100 workers lose jobs", 23 July 2023

At least 4,100 workers lost their jobs with the closure of two locators inside the Mactan Economic Zone in Lapu-Lapu City, Cebu.

Department of Labor and Employment in Central Visayas Regional Director Lilia Estillore said Mactan Apparel Inc. and First Glory Philippines Inc. have decided to cease operations due to high production and logistics cost.

Mactan Apparel will retrench 3,500 workers while First Glory, a logistics company, will retrench 600 workers.

Estillore said the 4,100 workers are to receive separation pay on 25 July as mandated by law.


Instead of paying them half month’s salary per year of service, the two companies are giving their employees compensation equivalent to 18 days per year of service, according to Estillore.


DoLE-7 can release P10,000 to P30,000 as livelihood grant for the said workers.


Meanwhile, Labor group Partido Manggagawa denounced the retrenchment and asked the multinational company Adidas to explain why its supplier factories are closing down.

“These are factory closures, not just mass layoffs. Even though the economy is growing, workers are suffering. More than 4,000 breadwinners have lost their jobs and their families will now have to deal with all the difficulties of joblessness,” Dennis Derige, PM-Cebu Chapter spokesperson, said.