THE Philippines’ garment industry has taken a big hit from weak demand overseas, resulting to either retrenchment or forced leave of some 5,100 factory workers across the country.
According to Confederation of Wearable Exporters of the Philippines (Conwep) executive director Maritess Jocson-Agoncillo, at least nine factories have been affected by plumetting overseas demand,
including Luenthai Philippines, the country’s biggest exporter of textile goods using cotton.
Reports showed that 4,577 workers have been retrenched while another 500 were made to go on leave, an equivalent to about 3 percent of the 182,600 workers employed by the Conwep member companies.
Of those retrenched, Luenthai accounted for close to half at 2,000, which is equivalent to as much as 60 percent of its workers.
Jocson-Agoncillo said that according to Luenthai, it had to cut down its workforce because of the soft demand for its products that has persisted for some two years.
Luenthai has manufacturing facilities in Clark Freeport in Pampanga as well as in Cebu, Tarlac and Bataan provinces and works with well-known international brands such as Ralph Lauren, Dillard’s, Adidas, Uniqlo, Victoria’s Secret, Coach and Michael Kors.
Meanwhile, Luenthai said the retrenchment and forced leaves were coordinated with the Department of Labor and Employment “to ensure transparency, fairness, and adherence to legal standards, underlining our dedication to ethical business practices.”
“All affected employees received comprehensive severance packages that meet legal standards,” Luenthai said in a statement.
Jocson-Agoncillo, however, said that no other factory had expressed plans to follow suit. “Knock on wood, I think this is it, so far,” she said.
