Export firms assure no layoffs

CEBU, Philippines - Despite the lingering uncertainty in the global market, some export companies gave the assurance that there will be “no retrenchments” in the next few months to next year.

Processed seaweed exporter Benson U. Dakay assured that Shemberg Marketing Corporation (SMC) will keep its 1,500 regular employees as the company is trying to sustain profitable business despite the unpredictability of the market demand.

Dakay said the company learned to apply cost-cutting methods that will keep number of workers and avoid retrenchment.

The country’s carrageenan exports suffered from a 30 percent decline in the first three quarters of this year.

Likewise, furniture exporter Michael Basubas said although furniture market in the world is yet to feel the full upswing of the global demand, most companies are holding on to their employees, while the industry is also facing exodus of workers going to the Middle East.

Certainly, Basubas said there will be no major retrenchment in the next few months or next year. Some companies are even hiring to fill in the vacancies left by skilled furniture workers that were pirated by the Middle Eastern companies.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza also said that export workers especially in the home furnishing sector, as well as other export sectors like fashion accessories, gift toys and houseware will not likely to cut workers anymore.

Mendoza said some export companies have already gotten orders, although volumes are not good as pre-global recession times.

“We believe that we are on our way to recovery. Its hard to let go some of our workers now, we might lost them when the market recovers,” Mendoza said.

In the last two year, the furniture export trade in Cebu lost over 25,000 jobs from streamlining, and cost cutting measures adopted by surviving companies. Some furniture manufacturing firms, were not able to make it, and declared closure.          

Of the total 183 members of CFIF, about 40 companies have declared closure in the last two years. Most of these companies that closed are small and medium firms.

Mendoza added that aside from hoping against hope that the global recovery will be felt by exporters by next year, he said most export firms especially in the home furnishing sector are learning to survive amid the weak global market, by penetrating the local consumers.

Now, most home furnishing firms are taking advantage of the robust tourism industry and real estate in the country, especially in Cebu.

According to Mendoza, some furniture export firms are busy doing products for big hotels and resorts, as well as restaurant chains. Others are also commissioned to do furnishing items for big residential projects, and condominiums.— Ehda M. Dagooc