Mactan Export Processing Zone records first wave of retrenchment

LAID OFF Some 4,400 employees of the Mactan Export Processing Zone (MEPZ) were laid off amid the economic slowdown caused by the coronavirus pandemic. —MEPZ WORKERS ASSOCIATION FACEBOOK PAGE PHOTO

CEBU CITY, Cebu, Philippines — About 4,400 workers at the Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City, the biggest export-oriented economic zone outside Luzon, were laid off amid the economic slowdown caused by the new coronavirus disease (COVID-19) pandemic.

Salome Siaton, director of the Department of Labor and Employment in Central Visayas (Dole 7), said the workers from five sports garment companies at the MEPZ were retrenched effective on Oct. 4.

This was the first wave of retrenchment at the MEPZ, which has around 100,000 employees, since the start of the pandemic.

The MEPZ, which opened in 1979, houses over 35 business ventures, from garments to electronics, about 50 percent of which are Japanese-owned.

Siaton said notices were issued to the affected employees on Sept. 4 by their respective companies, namely, Global Wear Manufacturing; Metro Wear Inc.; Feeder Apparel Corp.; Vertex One Apparel Philippines Inc.; and Mactan Apparels Inc.

She said 5,600 workers were supposed to be retrenched but after a series of consultations and reconsideration, the numbers went down to 4,400.

Siaton said a team from the Dole 7 went to the work sites of each establishment also on Sept. 4 to witness the final payment of the separation pay of affected workers.

Intervention

“Our team saw to it that the notices of termination, computation of separation pay, the certificates of employment, and the release of waivers and quitclaims as well as the photocopies of checks and employee’s exit checklist and clearance were thoroughly checked and looked into,” Siaton said.

There were no concrete plans yet as to how the government will be able to help the affected MEPZ workers.

The Dole 7 promised that they will be implementing “intervention” programs to help the displaced workers.

“We will be referring the affected workers to the local government unit and the Public Employment Service Office for profiling. Profiled workers will be referred to companies based in the city that have positions or jobs available,” Siaton said.

She said the workers who would want to gain training experience for other skills would be referred to the training center of Lapu-Lapu City, which is being operated through the Technical Education and Skills Development Authority.