PH Garment Industry Workers Expect to Be Displaced

With the predicted global economic slowdown, a maximum of 10% of the 280,000 workers in the local textile, apparel, leather goods, and garments industry are forecasted to be displaced.

Executive Director of the  Confederation of Wearable Exporters of the Philippines (CONWEP), Ms. Marites Jocson Agoncillo, has mentioned that around 3.5 – 4% of workers have already been temporarily retrenched, including 4,000 workers from five garment firms in Cebu.

Agoncillo has mentioned that “If conditions worsen, we can go high of 8-10 percent,”

According to Agoncillo, CONWEP has a scheduled meeting with the  Department of Labor and Employment and the Department of Social Welfare and Development to aid the affected workers.

This apparent slowdown is mostly due to the US registering a low monthly consumer confidence index as of August. The US is the largest market of Philippine leather goods, textiles, and apparel.

Agoncillo says that “This is an indicator that the average US consumer is not confident to spend as they are worried about another possible recession. They would rather hold back spending in the next 12 months,”

Apart from the global economic slowdown, Agoncillo also noted the disruption in access to raw materials,  labor costs, global supply chain, compliance risk issues, and logistics.

The second tranche of wage orders will be implemented later this year up til next year.

“Goods are not moving out of the shelves, as it should. And it is for this reason that customers and brands have to take conservative posture and cut back on your other projections. This was exactly what happened to our member in Cebu where the projection of the buyer with a major investment did not materialize,” says Agoncillo.

Source: Manila Bulletin