Vol. XXII, No. 169 [ BusinessWorld Online ]
Monday, March 30, 2009 | MANILA, PHILIPPINES
CEBU CITY — Over 15,000 workers, roughly a third of the direct employees at the state-run Mactan Economic Zone (MEZ), have either been retrenched or affected by temporary work schedule adjustments or temporary suspension of operations due to the global financial crisis.
A survey conducted by the MEZ administration showed that there have been a total of 15,311 affected workers as of last March 15. The zone has 105 locators that employ 43,389 direct employees.
Some 487 workers were re-trenched, a total of 3,182 were affected by their employers’ suspension of operations and 11,642 workers are under temporary work adjustments such as forced leave, compressed workweek, reduction of shifts per day, work rotation, and no overtime.
The survey showed that 68 companies, roughly 65% of the zone’s locators, have been affected by the crisis. Six companies re-trenched, while 20 temporarily suspended operations for as brief as four days to as long as six months, and 42 locators adjusted work schedules.
‘Not as bad as it looks’
Zone administrator Sansaluna A. Pinagayao was quick to say, however, that the situation "is not as bad as it looks" because 31 locators are still hiring and have recruited a total of 191 workers as of March 15. There are also some 219 job vacancies from 18 locators at the zone, the survey showed.
"Some locators had to let go of some workers because they don’t have the skills needed at the moment. But they’re also hiring because the skills that they need are different," Mr. Pinagayao said.
Those affected by the crisis were the locators from the semi-conductor and automotive sectors, which have been reeling under weaker demand for their products. Half of the locators at the zone are Japanese and most produce semi-finished products for the semiconductor and electronic sector.
As of the first quarter, Mr. Pinagayao said, semiconductor shipments out of the Mactan ecozone have declined by 30%-40% because of the crisis.
Surprisingly, the garment sector has been spared. Mr. Pinagayao said most of the 37 locators that are not affected by the crisis belong to the garments sector.
To assist the affected locators, Mr. Pinagayao said the Philippine Economic Zone Authority, or PEZA, has suspended the monitoring of the implementation of fiscal incentives. "For those who have suspended operations, we will not count the months as part of the income tax holiday granted to them," he explained.
A total of 946 workers, including those employed by subcontractors of MEZ locators, have received assistance from the PEZA One Stop Workers’ Assistance Center, which was formed by the government earlier to help displaced workers.
Some 896 workers have been assessed for possible scholarships by the Technical Education and Skills Development Authority’s regional office.
Mr. Pinagayao said the center has also been coordinating with the Department of Labor and Employment to ensure that the displaced workers receive their separation benefits. — Marites S. Villamor
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