Government bailout saves Zambo jobs

ZAMBOANGA CITY (AFP) — Fishing and canning operators in this southern port city have been thrown a temporary financial lifeline by the government, saving the jobs of about 31,000 people for the time being, the government said Monday.

A special economic team headed by presidential adviser on Mindanao Affairs and the Mindanao Economic Development Council, Jesus Dureza, met with local business leaders last week to avert the closure of plants in Zamboanga due to rising fuel prices.

It is estimated that at least 65 percent of the fishing industry’s operating cost is spent on fuel.

"We got a commitment from industry players and they feel more confident now that they can minimize the effects of the cut backs in both operations and labor," Dureza said.

He told reporters the government intended to allot at least P3 billion to help local fishing and canning factories offset the impact of high operating costs and to upgrade their facilities.

The Department of Labor and Employment (DOLE) has also set aside some P500,000 to help workers who may still lose their jobs as canneries slim down their operations.

Dureza said the majority of the 19 fishing industries, nine canning firms, and three tin can manufacturers in Zamboanga had committed to extending their operations for the time being to cushion the possible social impact closure would bring.

Seven canning factories had earlier this month filed a notice of temporary cessation of operations with DOLE.

Dureza said most of the factories that had indicated they would be shutting down this month and early December had decided to continue operations, at least for now, following government intervention.

Operators of the canning factories and fishing fleets however are still apprehensive about long-term survival of their industries.

They said feasibility studies for loans offered by the government could take six months before they were approved.

Dureza admitted, though, that there would still be some cutting back in the number of people employed in the canning and fishing industries in Zamboanga despite the intervention.

"At least the industry has given its commitment to continue operations as best they can for the time being which is good enough for now."

Meanwhile, the mayor of General Santos City has denied a media report that canning factories in the port city in southern Mindanao were closing.

Mayor Pedro Acharon said, "no canning firm is closing down in General Santos City" known as the tuna capital of the Philippines. He said the reports "skewed facts and distorted reality."

And he added that the canneries named in the report were in Zamboanga and not General Santos.