Export firms deem crisis just a temporary setback

CEBU, Philippines - Although there is a need to retrench people due to the deteriorating business landscape, some export companies are trying to hold on to its people for as long as they could, believing that the crisis is just a temporary setback.

"There are many ways to cut cost, letting go of our employees is the last thing we would consider, unless there are no orders and no jobs already," said Shemberg Marketing Corporation (SMC) president Benson U. Dakay.

Despite the drop in carrageenan orders by over 50 percent in the world market, Dakay said Shemberg has promised its employees that they will keep their jobs, at least in the next two years.

For Shemberg, which maintains a total of 1,500 workers, work rotation, forced leaves, five-day or three-day workweek are being applied to keep the employees intact, without letting go of any of them.

According to Dakay, the company owes something from the workers, who have been with the company during its profitable years, and now that crisis has hit its sector, he has to make sure that the company will not just let them go and drive their families "hungry."

 Shemberg has also adopted a no-overtime policy, including other extra payments.

 Cebu Gifts, Toys and Housewares Exporters and Manufacturers Association (GTH-Cebu) president Ramir Bonghanoy for his part also said that as long as there are jobs, employees have to share it evenly, rather than losing income at all.

 Bonghanoy, said that in GTH sector, companies have kept their regular employees as of this time, saying while the crisis is on, companies are doing something to prepare for the market rebound.

Like Dakay, Bonghanoy believes that these difficulties will pass, and that it is important for a company to focus on the recovery.

Bonghanoy however, admitted that most companies are now slowing down their contract renewal for contractual workers, but regular employees are kept.

Cebu Furniture Industries Foundation Inc. (CFIF) president Eric Casas for his part said that because the furniture sector is the forefront casualty of this global crisis, the industry can’t promise that future lay-offs will be controlled.

Furniture industry players warned that the performance of the sector will see a further contraction by 30 percent this year, although the start of recovery is expected in the early part of 2010.

CFIF past president Michael Basubas said that it is also important for furniture firms to keep its core employees, so that when the market recovers, workers are still there to help, rather than lose them this time, and will not be able to re-hire them when the market rebounds.

In the span of one and a half year, furniture industry players in Cebu already laid off a total of 11,800 workers, these are employees that lost jobs because of company shutdown or massive streamlining.

On the other hand, as the industry sees a potential contraction of about 30 percent in the next few months, more people may lose their jobs this year, but "only the deserving employees will keep it," Casas concluded.— Ehda M. Dagooc