CEBU, Philippines – FBMA Marine Inc., an Aboitiz-owned shipbuilding plant inside the West Cebu Industrial Park (WCIP) in Balamban, Cebu, announced yesterday that it is retrenching 73 regular employees since their company has not received a single order for a vessel the past six months.
Since the company is still completing two vessels for United Kingdom, that are due in July this year, it has retained 115 workers mostly from the production side.
“We’ve made a thorough assessment on this matter. We are victims of the global economic crisis. There are a lot of second hand vessels anchored around offered at a very low price,” said FBMA chairman and chief operating officer Roberto Aboitiz.
Effective June 15, the 73 regular employees of FBMA, will lose their jobs. Most of them are from support operations, such as administrative department, warehouse and purchasing.
However, Aboitiz assured that the Aboitiz Group companies, like the Tsuneishi Shipbuilding plant also in WCIP, and other companies under the conglomerate, would endorse the names of these retrenched employees for possible hiring.
The shipbuilding plant, which has been one of the prides of Cebu for producing internationally-accepted and high quality vessels for craftsmanship, is not however, announcing a full plant closure.
But it is currently looking for an investor “not just to bring money, but to bring clients.”
Aside from the separation pay and other settlements required by law for displaced workers, FBMA is also setting up different measures to help the affected employees.
“Our new business now is work for job for these people. Our business is affected externally, not internally. The world crisis now is so much, as it’s gonna last long,” Aboitiz said in a press conference yesterday to formally announce the company’s partial retrenchment program.
While there is still hope that FBMA will be able to get highly-specialized vessel orders from around the world, Aboitiz said this time, the company has to make a ‘hard decision” of cutting off 40 percent of its workforce.
“The market has dried up, there are less requirements for vessels now,” Aboitiz said.
The company has incurred losses in the last six months. According to Dough Border, FBMA chief operating officer (COO) the company had been averaging to close at least 10 to 12 vessels ship orders per year.
This time, due to widespread economic slowdown, the shipbuilding industry being severely affected, Aboitiz added.
In 2006, FBMA lost 305 workers simultaneously to an Australian-based shipbuilding company that launched an allegedly illegal mass hiring in the Philippines, particularly from the ship building companies in Balamban.
The first vessel constructed by 15-year-old FBMA was a 50-knots 45-meter Tricat for the Hong Kong-Macau route.
It has delivered 22 vessels to different countries since 1997, such as Europe, United States, Australia, and some parts of Asia.
Balamban Mayor Alex Binghay, for his part lauded FBMA’s move to work for alternative jobs for the displaced workers.
FBMA Marine is an experienced builder of steel and aluminum vessels based in Balamban, Cebu. — /NLQ (THE FREEMAN)