Lilia Estillore, director of the Department of Labor and Employment in Central Visayas (DOLE-7).
CEBU CITY, Philippines — More than 4, 000 employees of the Mactan Export Processing Zone (MEPZ) that is based in Lapu-Lapu City are set to lose their jobs next month.
Of the number, 3,500 workers are employed with Mactan Apparel Inc. while another 600 are working with First Glory Philippines Inc.
Both companies have decided to already cease their operations in Lapu-Lapu City due to high production and logistics cost, according to Lilia Estillore, director of the Department of Labor and Employment in Central Visayas (DOLE-7).
“Ang garment gyud karon, is heavily affected gyud siya. If you talk of sports wear, nihinay gyud ang sports wear,” Estillore said.
“Sa logistics, ang ilahang clothing materials dili man gud sa ato. Some are from Vietnam, Cambodia, didto nalang sila [mo operate] kay naa naman silay existing, daghan naman sila ug companies didto. Daghan naman sila ug suppliers, service providers didto,” she said.
Estillore said the over 4, 000 employees are set to receive separation packages as mandated by law. The amount will depend on the number of years that they have worked in their respective companies.
And instead of giving them half a month’s salary per year year of service, the two companies are giving their employees compensation that is equivalent to 18 days per year of service.
The affected workers are set to receive their separation pay on July 25.
In addition, they will also be paid their compensation for the entire month of July even if they will no longer be asked to report for work until the end of the month, Estillore added.
Estillore said that during the payout, DOLE-7 will also establish a ‘writeshop’ to teach these workers how to create a project proposal that would make them qualify to avail of their agency’s livelihood assistance.
According to Estillore, DOLE-7 can release P10,000 to P30,000 as livelihood grant.
“Pwede ra sad group. Kung group sila, mag-abli sila ug refilling station. Dili man ka maka-abli ug P30,000 ra. Kung grupo mo, P1 million mo. Tag P30,000 mo kada usa, so mas dako-dako ilang negosyo,” she explained.
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