11 Japanese firms threaten pullout due to labor unrest

Eleven Japanese companies led by car maker Toyota Motor Philippines Corp. are threatening to pull out their investments from the country if the government is unable to avert further labor unrest.

The Japanese investors made the threat over the weekend as the Department of Labor and Employment (DOLE) announced it has received a total of 185 notices of permanent closures and retrenchments due to economic difficulties.

DOLE is also warning of the "strong possibility" of more strikes in the second half of the year due to deadlocks in collective bargaining agreements (CBAs).

Toyota and 10 other Japanese companies held talks with DOLE and the Department of Trade and Industry last week to express their concern over the growing labor unrest.

With its 1,400 workers, Toyota is the country’s leading car maker with some P8 billion in investments and exports amounting to $50 million each year.

It also exerts major influence over other Japanese companies doing business in the country.

The Japanese car giant’s assembly plant in Sta. Rosa, Laguna has been strike-bound since March 28 after it dismissed 227 workers for allegedly illegal and destructive acts.

The 10 other Japanese firms are also experiencing labor problems and may soon face strikes.

The Japanese companies claim labor disputes similar to the case of Toyota could be settled quickly since it was allegedly an illegal strike but government officials are supposedly afraid to act because of the looming May 14 congressional and local elections.

DOLE and DTI officials said they are trying to forge a "win-win" solution for both the Japanese firms and their workers.

Labor officials are reportedly concerned that the Japanese firms’ labor problems would be similar to a previous major dispute at Nestlé Philippines which resulted in major dislocation.

Labor Undersecretary Arturo Brion warned the government is expecting an increase in the number of strikes due to deadlocks in CBA negotiations.

But Brion said that the number of strikes from January to March decreased to 10 from 16 during the same period last year.

Brion noted nearly half of the strikes were due to CBA deadlocks, especially on economic issues, while 60 percent were attributed to unfair labor practices.

"(But) based on our newly set up early warning system, there are many expiring CBAs in the last six months of the year and this could mean more deadlocks in negotiations and more work stoppages," Brion said.

As of March 7, Brion said a total of 5,197 workers were displaced due to retrenchments and closure of firms that include Hosakawa Assembly, Tire and Rubber Inc., BLTB Co. and San Miguel Food Inc.