4,577 Philippine garment workers retrenched in Jan-Apr: CONWEP

08 May '24

1 min read

4,577 Philippine garment workers retrenched in Jan-Apr: CONWEP

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Insights

The Confederation of Wearable Exporters of the Philippines recently said 4,577 workers from 10 firms have been retrenched and 500 put on forced leave in the first four months this year.
The reasons included a soft market, the lack of or cancelled orders, contentions on US non-tariff policies and detention due to the Uyghur Forced Labour Prevention Act.

Four thousand five hundred seventy seven workers from 10 companies have been retrenched and 500 put on forced leave in the first four months this year, the Confederation of Wearable Exporters of the Philippines (CONWEP) said recently.

CONWEP executive director Maritess Jocson-Agoncillo said the retrenchments were done for various reasons like a soft market, the lack of orders or orders pulled out because of cheaper costs in other countries, contentions on US non-tariff policies and detention due to the US Customs’ Uyghur Forced Labour Prevention Act (UFLPA).

CONWEP member companies have been affected, with order worth $5million-$6 million compromised, she was cited as saying by domestic media reports.

Nine of the factories reported retrenchment or implemented forced leave of 3,077 workers between January and April. Five hundred of them were put on forced leave, but will hopefully be recalled back once orders resume.

CONWEP's largest member company Luen Thai’s factory in Clark, Pampanga, retrenched 2,000 workers due to detained orders in the United States, barred by the UFLPA.

As of February, nearly $5 million worth of shipments from the factory have been detained, most of which were orders due in December last year.

Fibre2Fashion News Desk (DS)

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