THE Department of Labor and Employment (DOLE) on Wednesday said it is now checking if the labor displacement from the looming closure Honda Cars Philippines Inc.’s (HCPI) plant in Laguna will spread to other companies.
In a statement, Labor Secretary Silvestre H. Bello III said they are now determining the number of HCPI’s suppliers and dealers, which may be affected by the closure.
“My worry is that the workers of the dealers and providers [of HCPI] may also be affected [by the closure],” Bello told reporters in an ambush interview.
The Trade Union Congress of the Philippines (TUCP), which is conducting its own assessment on the suppliers of HCPI, said their initial report showed the car manufacturers has at least six suppliers.
“We heard these suppliers have 1,000 to 2,000 employees including mechanics,” TUCP spokesman Alan Tanjusay told the BusinessMirror in an SMS.
Tanjusay said they are closely monitoring the situation of HCPI’s suppliers to ensure that they “get fair and just treatment from Honda Cars Philippines in the same way that its management treats its 387 workers.”
Bello said the displaced employees of HCPI got a generous separation pay from their management. “Under the law, if a company closes it should give one-half monthly pay for every year of service. The offer of Honda Philippines is one and a half months for every year of service,” Bello said.
“So that is about three times the legal requirement for separation pay. They have some workers who will get from P1 million to P 2 million,” he added.
In an ambush interview, Labor Assistant Secretary Officer in Charge Dominique R. Tutay told the BusinessMirror the closure would likely not lead to any mass displacement from the closure of HCPI.
“It is likely the displacement [among the suppliers] will not be automatic. They are just supplying Honda but there are so many companies that they also service, so the effect or impact [of the closure on displacement] will not be much high,” Tutay said.
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