The labour-intensive garment manufacturing industry in the Philippines, which employs around 250,000, has warned of massive layoffs, with immediate impact on small companies, if the current Tax Reform for Attracting Better and Higher-quality Opportunities (TRABAHO) Bill is passed into law, according to a survey conducted in September last year by the Confederation of Wearable Exporters of the Philippines (CONWEP).

 

The proposed TRABAHO Bill seeks to overhaul the country’s incentive regime to investors. CONWEP Executive Director Maritess Jocson-Agoncillo said the survey showed that small firms would be the first to succumb if the bill becomes law, according to media reports in the country.

According to Jocson-Agoncillo, the survey showed that for a company with 1,500 workers and below, the impact is an immediate shutdown within 6 months to one year. She noted that the TRABAHO Bill comes on the heels of a declining apparel exports. Apparel exports decreased by 16 percent last year to $928 million. 

For medium-sized firms employing 3,000 to 5,000 per factory, and manufacturing products like jeans, the displacement of workers would be 50 per cent in 12-18 months. For firms producing higher end products, like suits, the displacement threshold is 30-32 per cent. 

Published On : 24-07-2019

Source : Fibre 2 Fashion