Lexmark confirms 2015 closure of inkjet plant, loss of 1-T jobs
Several employees of the inkjet printer plant of Lexmark International Phils. in Lapu-Lapu City had an inkling about their management’s plans to close down operations by 2015.
Those plans were made official in yesterday’s press conference, when Lexmark officials confirmed that about 1,100 employees will be laid off three years from now as part of their ongoing global re-structuring.
Lexmark is canceling its inkjet printer business amid the emergence of smartphones and tablet computers along with online social media sites like Facebook that enable easy storage and recovery of data (see related story on page 31).
The rising popularity of these digital devices have lowered market demand for printers, especially those used for homes.
RL Bandy, Lexmark Research and Development Corp (LRDC) president and chief executive officer, said as much as he explained that the company will focus on higher value imaging and software solutions.
Officials of the inkjet plant held an afternoon meeting to discuss the impending plant closure.
Regional Director Ma. Gloria Tango of the Department of Labor and Employment (DOLE) said their office has yet to receive notice about the closure.
Asst. Dole Regional Director Lilia Estillore said she talked to Lexmark HR Manager Ely Trinidad admitted the closure which was reported overseas.
Trinidad said Lexmark has enough time to inform them about the closure which is in 2015 yet.
In cases of closure, Estillore said the company must inform the DOLE office one month before its effectivity along with the retrenchment of the employees.
Estillore said the company should also ensure that termination benefits will be given, which consists of an amount equivalent to half a month salary for every year of service, 13th month pay, unused leaves and other perks or benefits.
She said their office will be ready to assist the retrenched workers.
Estillore said the workers can create a cooperative and will be given funds or livelihood grants for projects they would submit.
She said DOLE will provide training to them on how to manage a business to ensure that the fund won’t be wasted. A job fair can also be held which the workers can join, Estillore said.
Life after Lexmark
Lapu-Lapu City Mayor Paz Radaza said Lexmark’s inkjet printer plant closure would affect the city’s revenues and employment.
A worker who requested anonymity said they were saddened by the news but have resigned themselves to it.
A former Lexmark employee who’s now an overseas worker said the company is good to its workers.
“They have meal subsidies and they receive many gifts during Christmas, that (news) is sad,” the worker said.
Aside from the inkjet plant, Lexmark also has its research and development company and its shared services center.
Of the 1,700 jobs to be scrapped worldwide, about 1,100 are from Cebu’s plant, Bandy said.
To better prepare their employees for the closure, LIPI president and chief executive officer Robert Keith Gerwig said they are conducting counseling with their employees to better prepare them for a life after Lexmark.
Hardworking
They are also looking at available positions in their other entities – LRDC and CSSC – that employees from LIPI can occupy. Gerwig said they will also tap their network in the Mactan Export Processing Zone (MEPZ).
“We are very active in MEPZ (Mactan Export Processing Zone) and we are confident that we can connect with them (other companies) and help our employees,” LIPI human resource director Minchu R. Decena said.
Bandy said they expect to generate savings worth $85 million in 2013 and $95 million starting 2015.
He said these savings will help fuel more investments to their new business expansion.
Bandy said they will continue to grow their research and development and shared services in Cebu to support the growth.
Globally, there are 12,000 employees in Lexmark of which 3,000 are in the country.
“The Philippines and Cebu has always been a key center for Lexmark and it will continue to be so. We’re confident that we can grow our business here because of the quality of manpower available. The Cebuanos are creative, innovative and hardworking,” said Bandy.
Favorable place
Since 2010, Lexmark has been acquiring companies as part of their development into a business solutions company.
These include Perceptive Software, a leading enterprise content management software company.
Also acquired was Pallas Athena, a leading provider of business process management, document output management and process mining software.
Cebu business leaders lamented the impending closure of the Lexmark inkjet plant.
Cebu Business Club president Gordon Alan Joseph said the closure will help prepare the province’s workers to develop skills that would cater to industry demands.
Philip Tan, Mandaue Chamber of Commerce and Industry president, said Lexmark will continue operating and growing their company in Cebu due to the province’s low labor rate and quality of skills.
Cebu Chamber of Commerce and Industry president Prudencio Gesta said the closure won’t mean that the province is losing its edge in manufacturing.
“Cebu as a whole remains a favorable place for investments,” he said.
