The human barricades prevented pedestrians, vehicles, freeport investors and tourists from entering or leaving the freeport even as SBMA officials entertained a 270-member delegation of Japanese investors.
The Japanese delegation visited Subic to attend the inauguration of a $20-million plant of Japanese lumber products firm Juken Sangyo.
President Arroyo was represented by Cabinet members including Trade Secretary Manuel Roxas III, Interior and Local Government Secretary Jose Lina and Ambassador Alfonso Yuchengco, special envoy to Japan, Korea and China.
The employees barricaded all SBMA entry and exit points to demand the resignation of SBMA chairman Felicito Payumo and SBMA Freeport Service Corp. (FSC) president Manuel Aurelio.
The employees accused Payumo and Aurelio of reneging on a pledge to increase their salaries by 10 percent and pay for their overtime work.
The protesters started gathering at the freeport gates as early as 4:30 a.m. and dispersed only at around 10:30 a.m. after Olongapo City Mayor Katherine Gordon urged her followers "to be calm and be patient."
Jose Saddul, president of the Subic Bay Freeport Chamber of Commerce (SBFCC), furiously blamed Gordon and the local police for allowing the barricades to last for hours.
"We are projecting a bad image to our Japanese visitors and it might drive away whatever bright prospects for investments that we might gain from the entry of the Japanese. We are calling on President Arroyo to step into the matter before it comes out of hand," he said.
SBMA officials claimed the protest action was politically motivated since Olongapo City Hall employees were regularly spotted in the picket place.
Police regional commander, Senior Superintenent Enrique Galang said he has already ordered the Olongapo City police chief to coordinate with the Department of Labor and Employment (DOLE) and the city government to ensure the incident does not happen again.
Galang said he has organized a task force that will disperse the barricades if the rallyists attempted to disrupt freeport operations again.
Even local journalists covering the Juken Sangyo launching were prevented entry into the freeport by employees.
But employees of freeport investors said the barricades sent the wrong signal to investors and could result in massive displacement of workers.
Faye Molina, an employee of Taiwanese computer firm Acer Philippines Inc., said her company was forced to shut down because the employees were prevented from reporting to work.
"If these barricades continue, we are afraid that we might lose our jobs. Today’s shutdown incurred huge losses for our company since there is a scheduled shipment for today and the manpower was not available to deliver services," she said.
There was no available data on how much was directly and indirectly lost due to the work stoppage but SBMA investors fear that "the barricades may have incurred millions in financial losses."
It was not certain, for instance, if Juken Sangyo would pursue a planned P1-billion additional investment in the SBMA after its launching was marred by the protest action.
Juken Sangyo president Yusho Nakamoto said Subic was chosen over 15 countries due to security and environment aside from the leadership styled of Payumo.
Juken Sangyo will initially produce and export around 750 containers of processed lumber products a month from raw materials sourced from New Zealand.
The plant that Juken Sangyo launched yesterday is expected to generate jobs for 1,000 workers and was estimated to cost some $20 million.