Subic firms retrench workers due to Covid-19 losses

At least 20 companies in this Freeport have implemented retrenchment measures that affected workers because of financial difficulties brought about by the new coronavirus disease (Covid-19) pandemic.

A report from the Labor Department of the Subic Bay Metropolitan Authority (SBMA) indicated that the affected companies applied cost-cutting measures like forced leave, compressed workweek schedules, or outright termination of workers since February when the Covid-19 outbreak began to hurt business activities worldwide.

The report showed that as of June 2, a total of 2,435 workers underwent forced leave while 124 others were bumped off by compressed workweek schedules because of low demand for company products, or due to lack of materials and supplies for production.

On the other hand, around 700 workers have been terminated from employment since mid-February due to financial losses suffered by their companies.

The companies with most number of terminated employees were computer device manufacturer Wistron Infocomm (Philippines) Corp., with 551 affected workers; theme park operator Subic Bay Marine Exploratorium, Inc., with 110; and importer Simon & Stanley International Trading & Development Co., with 74.

Wistron also placed hundreds of workers on forced leave in February and March before finally separating 551 employees last April.

Meanwhile, ship repair firm Subic Drydock Corporation (SDC) is scheduled to separate 52 employees on June 25 after implementing mandatory leave for 149 workers on May 1 to 15, the SBMA report showed.

Subic Drydock administrative manager Diana Ross Mazo said in a statement that the imposition of enhanced community quarantine (ECQ) last March “forced the business to shut down for two months without revenue.”

Mazo said that despite the cancellation of project bookings, the SDC has recalled back to work 40 percent of its employees as the company reopened in a staggered fashion starting May 18.

“Over the next few weeks, SDC will gradually increase capacity in support of the ‘new norm’. However, based on careful review of our operation, we need to reduce manpower by separating some of our employees effective June 25,” she added.

Mazo said the company will abide by laws and regulations regarding the separation of workers and will provide the applicable 13th month and service incentive leave pay, as well as half month pay per year of service. Payment for the affected employees will be given in two separate checks: one dated June 26 and the other dated July 26, she added.

Mazo also said that SDC officials, along with representatives from the SBMA Labor Department and the Department of Labor and Employment’s satellite office in Olongapo City, met with the affected workers in six batches until June11 to process the termination.

SBMA Labor Department manager Melvin Varias said the SBMA Labor Department is closely monitoring the implementation by Subic companies of their retrenchment measures to ensure compliance with labor laws.

Prior to the Covid-19 crisis, various locators in the Subic Bay Freeport Zone employed a total of 138,940 workers, with close to 70 percent in the services sector and more than 15 percent in manufacturing, Varias said.

The terminated workers comprise about 0.6 percent of this total. (MPD-SBMA)

PHOTO:

Computer device manufacturer Wistron Infocomm (Philippines) Corp. is among Subic locators that have retrenched workers due to financial difficulties brought about by the Covid-19 pandemic.

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Taiwanese computer giant to reopen Subic plant

Wistron Infocomm Corp., formerly one of the biggest export manufacturers in the Subic Bay Freeport Zone, will soon resume production operations here.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Wilma Eisma on Wednesday said the Taiwanese computer giant conducted recruitment activities here for two days last week to hire workers for some 2,500 positions at its Subic facility.

Wistron’s return to Subic came as a direct result of the emerging trade war between the super-economies of the United States and China, as well as of the threat by the Trump administration to withdraw from the North American Free Trade Agreement (NAFTA).

“You can say that this again validates the inherent strength of Subic as a strategic business location, because when other countries lose their initial advantages in terms of cheap labor or distribution cost, companies opt for Subic,” Eisma said.

She also said that the SBMA expects more global companies affected by the trade war to consider moving out to Subic or other economic zones in the country.

According to SBMA Labor Department manager Severo Pastor, Wistron processed more than 4,000 applications during the two-day schedule of exams and job interviews last week, with 900 workers passing the qualifiers on the first day alone.

“They wanted HOTS -- hired on the spot, so Taiwanese personnel from the company personally conducted the interviews. The SBMA labor personnel simply assisted on the second day to help process the growing number of applications,” he said.

Wistron Infocomm started out in Subic in 1995 as Acer Information Products (Philippines), Inc., a computer manufacturing outfit of Acer, Inc., Taiwan’s biggest computer firm.

It earned its current name in 2006 when Acer, Inc. spun off its Subic operations and infused fresh capitalization of USD36 million to include a Mobile Operations Unit (MSU).

In 2008, Wistron contributed more than a fourth of Subic’s USD977.84 export total with export production of USD274.88 million, leading the top 10 Subic exporters when Korean shipbuilder Hanjin, now the biggest exporter, was just a fledgling operation with USD61.74 million worth of exports.

In 2010, however, Wistron closed its hand-held device plant in Subic, shifting all of its production here to a facility in Zhongshan, China, but leaving its design automation center here.

The move displaced some 700 workers, at least 200 of whom, however, were reportedly sent off to a Wistron plant in the border-town facility of Juarez, Mexico.

In a clear reversal of fortune, Pastor said the newly-opened positions in Subic are the result of the company’s plan to relocate their operations to Mexico due to the threat by President Donald Trump to withdraw from NAFTA, which he has criticized for allowing Mexico to “steal” jobs from the United States and opening the border to cheap, tariff-free goods. (Malou Dungog, PNA)

http://www.pna.gov.ph/articles/1055921

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Janitor, former pedicab driver among 10 outstanding workers in Subic Freeport

A janitor and a former pedicab driver were among those conferred on Wednesday as Ten Outstanding Freeport Workers here for exemplary performance and contribution in their respective companies.

The workers were​ honored in a ceremony held at the Subic Bay Arts Center by the Subic Bay Workforce Development Foundation, Inc. (SBWDFI) which was established by Subic-based business locators to honor and recognize the “best among the best” ​of Freeport​ workers who ​had ​shown​ discipline, dedication and commitment to excellence in their work.

Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia said that the conferment is one of the most significant part of the 23rd year anniversary celebration of the SBMA this month, as the honorees represented the best of Filipino workers in Subic.

“These outstanding workers represent the dedication and heroism of the more than 100,000 skilled and English-speaking workers in Subic Bay Freeport today who are loyal, competent,​ and credible,” Garcia added.

SBMA Labor Department manager and concurrent SBWDFI president Atty. Severo Pastor Jr. said the ten awardees were selected from hundreds who were nominated and subjected to a battery of interviews, performance appraisal​,​ and screening by the board of judges chaired by DOLE Regional Director Anna Dione.

The awardees included ​janitorial attendant James Elago from the Subic Bay Workers/Volunteers Multi-Purpose Cooperative, Inc. who was cited for committed and excellent service, giving first-rate confidence that the office is clean and in order during his five-year tour of duty; and Jonathan Beduya, a pedicab driver who started as an on-the-job-trainee and then rose to become the Information and Communication Technology (ICT) supervisor of PTT Phils. Corp.

Meanwhile, Jomar Ramos, senior production engineer from Nicera Phils., made it to the Top 10 for treating failure as an opportunity to success, thereby contributing to organizational sustainability and improvement of overall organizational effectiveness and capabilities.

Meldrid Mendoza, another awardee, started ​at​ the lowest level as molder at Koryo Subic, Inc. in 1998. She is now the Line Leader at ​the ​Molding Section​,​ which has the biggest number of workers in the company, and was selected twice as model employee and an Employee of the Year in 2014.

Another worker from PTT Phils. ​wa​s Lenie Manalili, a finance analyst and one of the company’s most outstanding employee for 2014, who had been part of the competence team of PTT​,​ which helped the company save P240,000 in its annual project. She is​considered​ a team leader who motivates her fellow workers and assists them on how they can perform their tasks well.

From CRESC Inc. ​wa​s Geraldine Lustre, a research and development leader who rose to become R&D supervisor for her numerous extraordinary and award-winning contributions to the company, such as safe and cost-reduction cleaning solution (2013), and the introduction of a work process that ​cut down​ production​ cost​.

​W​ith a positive attitude that influences his co-workers, Joel Galang of FBM Systems and Electronics, Inc. has maintained sustained superior performance in producing high quality work, such as maintaining handling equipment at peak serviceable condition without any operating error, thus making him worthy of the Sustained Performance Award given by the company.

Described as “the face” of her company, Medelyn Clavo, the senior accounting supervisor of Nakayama Precision Industries, Inc., helps maintain excellent service reputation that Nakayama enjoys for the past nine years.

From Sanritsu Technology Subic, Inc., Bobby Arabe, ​a​ production junior supervisor, maintained perfect work attendance as he ​delivered​ his job requirement​s​ satisfactorily with high quality level.

Lastly, Ruth Adoremos, the PD Operator and Senior Tester from Wistron Infocomm Phils. Corp., is responsible for the high standard qualification tests process for new electronic and computer model/products, including assembly and disassembly, and has formulated several training and evaluation materials​,​ which​ have​ helped enhance employees’ performance. (RAV/MPD-SBMA)

PHOTOS:

[1] The Ten Outstanding Freeport Workers receive their award for exemplary performance and outstanding contribution to their respective companies. (AMD,EVS/MPD-SBMA)

[2] SBMA officials, led by Chairman Roberto Garcia (center), congratulate the Ten Outstanding Freeport Workers for 2015. (AMD,EVS/MPD-SBMA)

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DTI Woos Taiwanese Electronics Firms, Formulates 5-Year Timetable Roadmap

MANILA -- The Department of Trade and Industry is crafting a five-year “Taiwan Roadmap” to attract electronics companies to relocate here as computer-maker Wistron Infocomm has substantially slowed down its manufacturing operation in Subic.

Trade and Industry for Trade and Investment Promotions Group Cristino L. Panlilio said that roadmap should highlight the Philippines’ competitiveness as a manufacturing location “We should be able to capture other electronics firms in Taiwan because of the rising cost in China,” Panlilio said adding the roadmap has a five-year timetable to bring in other Taiwanese firms.

Panlilio noted that Wistron, which used to manufacture most of its electronics products in Subic, has substantially reduced its operations as it relocated the bulk of its production in China because of competitiveness issues and the supply chain problem in the Philippines.

“Wistron is producing laptops only in Subic,” Panlilio said. It has reduced operations since the past three to four years.

Wistron Infocomm Philippines was the largest exporter in 2007 with freight on board (FOB) value of $448.7 million out of $971.7 million total Subic exports that year. In 2011, Wistron’s exports substantially declined to only $75.3 million.

But, Panlilio pointed out that the situation has reversed as cost in China has gone up substantially and some manufacturers like Taiwanese businesses are looking elsewhere. The Philippines is deemed gaining back its competitiveness as a manufacturing hub.

Panlilio said that Taiwanese could put up another economic zone although it has already an existing ecozone in Subic.

“Subic is always prepared to accommodate them,” he said.

In fact, he said, the 100 businessmen who joined in the one-day trade mission and business matching event yesterday at Dusit Hotel in Makati are going to visit Subic.(Bernie Cahiles-Magkilat, Manila Bulletin)

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