Firms in Subic to retrench about 3,500 workers

Like many other countries, the Philippines labour market is also taking a hit due to COVID-19 outbreak and the subsequent negative impact on the economy. At the country’s Subic Bay Freeport, about 20 companies have had to take retrenchment measures as they face financial difficulties due to the pandemic. 

The affected companies have so far applied cost-cutting measures like forced leave, compressed workweek schedules, or outright termination of workers since February when the COVID-19 outbreak began to hurt businesses worldwide, as per a report from the Labor Department of the Subic Bay Metropolitan Authority (SBMA). The report showed that as of June 2, a total of 2,435 workers underwent forced leave while 124 others were bumped off by compressed workweek schedules because of low demand for company products or due to lack of materials and supplies for production.

On the other hand, a total of 883 workers have been terminated from employment since mid-February due to financial losses suffered by their companies.

Some of the companies who have taken retrenchment measures in the area include computer device manufacturer Wistron Infocomm (Philippines) Corp., with 551 affected workers; port operator Subic Bay International Terminal Corp., with 121; theme park operator Subic Bay Marine Exploratorium, Inc., with 110; and importer Simon & Stanley International Trading & Development Co., with 74.

SBMA Labor Department manager Melvin Varias said his office is closely monitoring the implementation by Subic companies of their retrenchment measures to ensure compliance with labor laws.