In a report to Labor Secretary Patricia Sto. Tomas, the DOLE regional office in Zamboanga City said that four sardine factories operating there filed notices of temporary closure.
The four companies — Mega Zamboanga Universal Fishing, Miramar, YL Fishing and Ayala Foods — employ a total of 26,000 workers, including those working at fishing ports and as tuna canners.
Secretary Sto. Tomas said the companies filed notices of temporary closure because they were having difficulty coping with the economic crisis and soaring fuel prices.
"In their notices of temporary closure, the four factories indicated that they found it difficult to cope with the increased cost of operations that was brought about by the increasing prices of gasoline," Sto. Tomas said.
She also said oil price increases have resulted in increases in the cost of other materials being used in the production of canned sardines — particularly tin plates, which are imported from Japan and Korea.
Sto. Tomas has advised the factories to adopt reduced workdays to sustain their operations and preserve employment of their 26,000 workers rather than shut down their operations entirely.
"We advised them to adopt the reduced workdays scheme during an emergency meeting last week," Sto. Tomas said. She added that the DOLE regional office in Zamboanga was tasked to provide guidelines for the affected companies.
She said other concerned government agencies also urged Congress to extend the Agricultural Competitive Enhancement Fund (ACEF) to enable the government to provide financing assistance to the four companies.
Some P700 million is needed for these sardine canning companies to stay in business, Sto. Tomas said. — Mayen Jaymalin