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230 workers of Cebu Toyo Corporation were placed on indefinite forced leave due to supply chain disruptions triggered by the Middle East war
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Cebu Toyo, located at the Mactan Economic Zone 2, produces optical lenses for electronics and is located in Mactan Economic Zone 2
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Labor group Partido Manggagawa warns of possible retrenchments and a “first wave” of war-related job losses
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Group calls for expanded government employment assistance and job transition programs
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Coordination is ongoing with the Department of Labor and Employment
A total of 230 workers of manufacturing firm Cebu Toyo Corporation were placed on indefinite forced leave due to supply chain disruptions triggered by the Middle East war, according to a labor group.
The company, which produces optical lenses for electronic products at the Mactan Economic Zone 2, confirmed that management ordered the indefinite leave in direct response to supply chain breakdowns tied to the ongoing conflict in the Middle East.
Labor group Partido Manggagawa (PM) warned that the situation could deteriorate further.
READ: Global logistics face major disruption as Middle East crisis escalates
“Unfortunately, we fear that the indefinite forced leave is a step towards eventual retrenchment for the workers. Further, the mass layoff promises to be just the first wave of war-related terminations. Thus, the government needs to set up a job assistance program in dialogue with labor organizations,” Dennis Derige, spokesperson of PM’s Cebu chapter and vice chair of the Regional 7 industrial tripartite peace council, said in a statement.
PM said it is already assisting the displaced workers and coordinating with the local Department of Labor and Employment (DOLE) office to convene a dialogue with those affected.
PM also criticized the government’s current emergency employment program, TUPAD, calling it too narrow in scope and susceptible to patronage. The group supports a redesigned public employment initiative based on a national beneficiary registry, providing extended work opportunities of up to 100 days and emphasizing climate-related job creation.
TUPAD, or Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers, is a DOLE program that offers emergency employment opportunities to workers in the informal sector, as well as underemployed and displaced workers.
In addition, the group urged the regional wage board to expedite its deliberations on a pending petition for a P100 wage increase filed by labor unions.
The group described the episode as an initial test of President Ferdinand Marcos Jr.’s newly granted emergency powers. “This is a test case of the emergency powers granted to President Bongbong Marcos, Jr. With great power comes great responsibility. We demand an urgent response from the President’s alter ego in the DOLE,” Derige asserted.
