Over 4,000 workers laid off in Mactan eco-zone

Over 4,000 workers in the Mactan Economic Zone (MEZ) lost their jobs after several manufacturing companies announced layoffs amid the decreased global demands for luxury goods and rising inflation.

According to Joseph Morong’s report on “24 Oras,” over 4,000 employees were retrenched from five luxury goods manufacturers while more than 100 workers were laid off from a company that makes cotton buds in the economic zone.

MEZ administrator Abe Alug said this developed after the firms ceased operations due to their losses.

“The demand for this from their customers globally declined. Added to that is 'yung global recession and the unexpectedly high inflation rate. Actual losses talaga ang meron sila. Hindi lang siya perceived or imminent (They were having actual losses, not perceived or imminent),” Alug said.

The Department of Social Welfare and Development (DSWD) has already distributed financial and food assistance worth P2,000 to P5,000 to the displaced workers.

“Medyo significant nga ‘yung number kung magkukumpara tayo sa mga nakaraang mga taon. Ngayon lang tayo nagkaroon ng ganito kalaki at karaming mga manggagawang na-retrench,” DSWD Undersecretary Alan Tanjusay said.

(The number is significant compared to last year. It is the first time we recorded such big retrenchment.)

“We can somehow forecast na kung magpapatuloy 'yan ay 'yung mga non-essentials baka tamaan lalo,” he added.

Philippine Economic Zone Authority (PEZA) director general Theo Panga said the slowdown in global trade has resulted in job losses at company level in other economic zones.

“While we expect some retrenchment in some eco-zone industry products with the looming slowdown in global trade due to the rising inflation in some key export markets, the job cuts will be more at the company level and not eco-zone-wide,” he said.

Panga further said PEZA registered a 6.5% year-on-year increase from January to August as some industries including semiconductor, power, tourism and medical equipment slowly recover from the slump.—Sundy Locus/LDF, GMA News