Trade and Industry Secretary Manuel Roxas II said a labor strike could endanger the entry of P3 billion in additional investments from Nestle Switzerland and could disrupt the flow of Nestle infant formula in the region.
The Nestle plant in Cabuyao, Laguna, according to Roxas, is the ASEAN supply center for infant nutrition products in the region.
Roxas said the Nestle labor union has filed two notices of strike.
According to Roxas, the DTI is putting on a "full court press" to prevent a strike by deploying a quick reaction team, headed by director Virgilio Fulgencio, to mediate the brewing labor dispute.
Aside from the possible loss of the P3-billion additional investment, Roxas said some 5,000 jobs are at stake.
Nestle had announced early this year that it would be investing P3 billion to increase its production capacity in the country over the next two years. The P3 billion would be spent to expand Nestle’s existing factories in Cabuyao and in Cagayan de Oro.
The Cabuyao plant mainly produces infant nutrition products for the ASEAN region while the Cagayan de Oro plant manufactures filled milk powder also for the whole ASEAN region.