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Thursday, October 20, 2005
4 factories shut down; thousands may lose jobs
By Al Jacinto
ZAMBOANGA CITY -- Thousands of workers are expected to lose their jobs after four of the country's largest sardines and canning factories here decided to temporarily shut down operation.
Reasons cited by the companies were high operating cost and continuing increase in the prices of petroleum products, labor officials said.
An estimated 5,000 factory workers will be affected by the shut down, which may last for as long as six months. Officials fear that more canneries are also expected to temporarily close down or lay off workers to cope with the rising cost of labor.
"We are afraid that more factories may also shut down and more workers would be affected," labor regional chief Chita Cilindro said.
She said at least three factories--Mega Fishing Corporation, Miramar Fishing Corporation, YL Fishing Corporation--have announced a temporary shutdown from four to six months beginning November due to extreme financial difficulties, lack of financing, and low sales.
A fourth factory, the Universal Fishing Corporation, said it would cut down on its regular work force to cope with the rising prices of petroleum.
Cilindro said aside from the factory workers and fishermen, those in the trucking services would also be affected by the temporary closure of the canneries.
But she said the government has embarked on a program to provide skills training seminars--from automotive to meat processing--to those affected.
She said some of the workers showed interest in the production of homemade bottled sardines in oil, which is popular in the southern Philippines.
"We have been closely working with the different government agencies, like the Tesda (Technical Education and Skills Development Authority) and the DTI (Department of Trade and Industry), so we may be able to help those affected by the closure of the factories," she said.
Cilindro said her group, composed of representatives from the Department of Agriculture and the Bureau of Fisheries and Aquatic Resources, would meet this week with factory executives to discuss how the government can help them cope with the crisis.
She said at least 15 fishing and canning factories are operating in Zamboanga, including several small players.
Among them are Century Fishing Corporation, Atlantic Foods, Columbus Seafoods, Permex Producers and Exporters, and Universal Canning Corporation, which totally employ more than 15,000 workers.
"The prices of canned sardines are high. Before we buy it at P6.50 each, but now it sells P8.40 and with these prices, we resorted to buying Malaysian noodles smuggled into Zamboanga for lunch or dinner, for only P5 a pack," 49-year-old tricycle driver Abdul Sali said.
He said the rising cost of basic commodities and petrol prices have pushed many small traders to buy cheap smuggled goods, from infant milk and toothpaste to Vietnam rice.
"You go to the market and you will see what I am talking about. Life is worst now than the time of (President Ferdinand) Marcos," he said.
"Now, everything is expensive. And it's good that noodles are a little cheap, cook it with many water, some salt and vegetables and you will survive the day," he added. (Sun.Star Zamboanga/Sunnex)
(October 19, 2005 issue)
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