Job crisis for steelworkers after warehouse raid

DMS warehouse shutdown leaves hundreds without work, wages, and clear answers
Displaced employees of the raided Davao Mighty Steel plant gather at the Davao City Hall grounds on August 17, 2026, to appeal for local government assistance. The workers sought immediate livelihood and daily subsistence aid after a sudden National Bureau of Investigation (NBI) shutdown on August 14 left hundreds without employment.
Displaced employees of the raided Davao Mighty Steel plant gather at the Davao City Hall grounds on August 17, 2026, to appeal for local government assistance. The workers sought immediate livelihood and daily subsistence aid after a sudden National Bureau of Investigation (NBI) shutdown on August 14 left hundreds without employment.Office of the 1st District Councilor/Facebook
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WHAT state authorities framed as a major operation turned into a job crisis for over 300 steelworkers in Barangay Ilang, Bunawan District, Davao City.

On August 13, 2026, a joint team led by the Presidential Anti-Organized Crime Commission (PAOCC) and the National Bureau of Investigation (NBI) — supported by the PNRI, Philippine Air Force, Coast Guard hazardous material units, Coast Guard Special Operations, and the Army's 10th Infantry Division — raided the Davao Mighty Steel Corporation (DMS) warehouse. Authorities served search warrants for making substandard steel rebars and claimed to have rescued 174 on-duty workers from dangerous exposure to radioactive materials, dust, and toxic fumes.

However, on August 17, over 200 affected workers gathered at the City Council building (Sangguniang Panlungsod) to share a very different story: they were not rescued employees waiting to be saved, but workers facing hunger.

For employees who have worked at the plant for years, the claims of a "rescue" feel completely untrue.

In a dxDC 621 RMN Davao interview on August 17, Goy-Goy, a steel worker who gave only his nickname, rejected the national agencies' claims. "Nangapasmo na hinoon mi! Wala na-rescue! Tungod sa ilang gihimo! Rescue ba diay nang tutokan ka og baril pag-raid?” he said.

(We are starving now! We weren't rescued! Is it a rescue when you are held at gunpoint during a raid?)

The sudden shutdown left the plant's workers without warning or pay. Workers said management gave no updates on their job status or their unpaid two weeks' salary.

Authorities’ findings

According to an official statement by PAOCC, Executive Director Undersecretary Benjamin C. Acorda Jr. said the operation "rescued" 174 Filipino workers who were found working around radioactive materials, dust, fumes, waste, and production residues. Authorities stated their search warrants were based on allegations that the company was making and selling substandard steel bars.

Immediate local support

When workers arrived at City Hall on August 17 seeking help, local offices moved quickly to assist them.

Denise Lagansua, a focal person from the Davao City Social Welfare and Development Office (CSWDO), said in an interview that although the visit was unscheduled, the office immediately stepped in, alongside Councilor Pamela Librado-Morata, to take care of the group.

City staff set up a mobile kitchen to prepare lunch and distributed water and snacks. CSWDO personnel then registered the workers' details and provided free transportation home.

The profiling showed that most workers interviewed were male Davao City residents who had been with DMS for 3 to 10 years. While some non-local workers have returned to their home provinces, CSWDO confirmed that district offices will continue helping affected local employees where they live.

Push for new worker safeguards

In a speech before the 21st Davao City Council on August 18, Councilor Librado-Morata, chair of the Committee on Labor and Employment Opportunities, said one-time relief is not enough.

"Ang pagdangop aning workers sa local government angay natong tagaan og hinanaling pagtagad, kay ang kahimtang sa atong mga trabahante sa syudad dili lamang ma-alibyohan sa temporaryong ayuda," Librado-Morata said.

(The appeal of these workers to the local government deserves our immediate attention. Because the situation of our city's workers cannot be relieved by temporary aid alone.)

She added that the plant closure has hurt nearby scrap metal collectors and local junk shops that relied on buying metal from DMS.

In response, the labor committee chair is pushing a proposal for a Workers' Emergency Lifeline Ordinance. The proposed city law aims to provide emergency cash and safety support to workers who lose their jobs due to sudden plant closures, raids, or disasters.

While local officials work on policy measures for longer-term solutions, the immediate future remains uncertain for the workers. Their demand is simple: the wages they already earned and a chance to work again.

As of writing, the first district councilor revealed in an interview with dxDC 621 RMN Davao that the agency is processing the salaries of the concerned employees and plans to release them on Thursday, August 20. GRS

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