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337 workers lose jobs in Mactan Export Processing Zone

At least 337 workers lost their jobs in the latest round of layoffs at the Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City, Cebu. The affected workers were employed by an electronics solutions company that closed down in September. They add to the number of workers laid off in other companies within the MEPZ, which includes 4,420 (2020), over 4,000 (2022), 4,000 (2023), and 4,577 (May 2024).

According to the Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno (Ama-Sugbo-KMU), a militant labor center in Cebu, the series of layoffs highlights the vulnerability of the country’s economy, which relies heavily on foreign investment.

“This proves the urgent and significant need for national industrialization, including the long-standing demand for genuine land reform as programs the government should implement,” Ama-Sugbo-KMU chairman Jaime Paglinawan said.

The group emphasized that the government’s policy of encouraging foreign investment even further burden workers in the country. The Export Processing Zones (EPZs) give more power to capitalists to exploit workers unhindered by laws or regulations.

The Export Processing Zone Authority (EPZA) was established through Presidential Decree No. 66 in 1972 to manage export processing zones under martial law. The EPZA has exclusive jurisdiction and authority within the EPZs.

Companies within the zones are given incentives such as tax exemptions and license fees. Workers in these zones experience low wages, flexible work arrangements, contractualization, and suppression of union rights.

“Through this, worker are prevented from uniting,” Paglinawan said. The group added that these conditions amplify the sufferings of workers and their families who already endure high prices, unemployment, and poverty.

AB: 337 workers lose jobs in Mactan Export Processing Zone