Philippines: 800 workers laid off after union victory, undermining job security and collective bargaining rights
"Mass layoff of 800 San Miguel workers seen as latest blow against union rights" 10 July 2026
CABUYAO CITY, Laguna — About 800 workers of San Miguel Integrated Logistics Services Inc. (SMILSI) were barred from reporting to work beginning July 6 after management placed them on floating status, a move that labor rights advocates said bears the hallmarks of union busting just months after workers secured the right to collectively bargain.
The workers, organized under the Unyon ng mga Manggagawa sa San Miguel Logistics–Independent (USMILSI-IND), said the company justified the move by claiming it had lost a bidding process covering its warehouse, transport, and bundling operations. The notice effectively left hundreds of workers without regular income while requiring them to remain on floating status under unclear employment arrangements.
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Workers said they were instructed not to report for work starting July 6 and were allegedly pressured to sign company documents despite the absence of clear guarantees on their wages, benefits, and eventual return to work.
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SMILSI, a major subsidiary of San Miguel Corporation, provides logistics services for Magnolia, Purefoods, and other San Miguel brands.
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The labor coalition argued that the mass layoff deprived hundreds of workers of their livelihoods[...] the move threatens to undermine workers’ constitutional rights to organize and collectively bargain.
The CTUHR called on the DOLE to investigate the mass layoffs and hold the company accountable for possible violations of labor rights, stressing that protecting workers’ security of tenure and freedom of association is essential amid the worsening cost-of-living crisis.
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