Garment industry faces shop closures, retrenchments of workers

The Kilusang Mayo Uno (KMU) Labor Center rang today the warning bell of massive retrenchments among garment workers as the garment industry takes a continuous beating due to the weakening of the dollar and continued increase in crude prices.

“Because of the weakening of the dollar, many garment companies are losing money since their goods now are more expensive compared to previous years. Another factor is most of their inputs come from neighboring countries in Asia which also experiences appreciation in the currencies, making importing more expensive than before,” said Elmer “Ka Bong” Labog, National Chairperson of the KMU.

According to Labog, garment firms have either folded up or planning to do so in the near future. “In Las Piñas alone, Kelseat Garments and Cris Garments have closed in 2007, leaving more than 1,000 workers without work. Knit Joy and Far Eastern Garments, also from Las Piñas, are threatening their workers of shop closure.”

Another garment firm in Taguig, Laws Textile have closed shop last month, retrenching more than 1000 workers. Five Star Garments in Parañaque have also closed shop as early as last year mainly due to the weak dollar.

“Some firms are closing local production and shifting to importing goods and then selling them to the local market, which they see as more profitable. Ajinomoto Philippines closed their Pasig plant last year citing such reasons, displacing almost 300 workers. Monterey Farms, a subsidiary of San Miguel Corporation, have done the same, forcing more than 100 workers to accept early retirement programs. They will no longer grow hogs locally since inputs remain expensive but will import pork and repack them for the local market,” stated Labog.

Labog also cited the weak consumer spending of the US market for the massive slump. “Most of this firms export to the US and since this market is shrinking, so goes the industry profitability.”

“We are asking the appropriate government agencies, including the Upper and Lower House to conduct an inquiry on this issue and immediately conduct measures to stop this massive retrenching of workers. The much-hyped growth of the economy is only good in press releases but in the ground where it really matters, workers are losing their job,” ended Labog.