House panel sets hearing on Honda/Wells Fargo closures, PAL Layoffs
THE House committee on labor and employment has scheduled a hearing for Tuesday on the recent closures of multinational firms’ Philippine operations and layoffs at Philippine Airlines (PAL).
“I (have) a hearing on Tuesday to look (into the) closure of Honda (Cars Philippines, Inc. or HCPI), Nokia (Corp.) (and) Wells Fargo (& Co.). I will try to include PAL in the hearing,” 1-Pacman Party List Rep. Enrico A. Pineda, the committee’s chairman, said in a text message to BusinessWorld Saturday.
Mr. Pineda said the hearing will focus on the cause of closures and to investigate whether employees were paid their separation benefits.
The three multinational firms are “leaving the Philippines not because of country-specific reasons, but because of issues of cost and competitiveness within the companies themselves,” Albay Rep. Jose Maria Clemente S. Salceda, who also chairs the House ways and means committee, said in an aide memoire dated Feb. 24.
“There are firm-specific issues among all the cited companies. Wells Fargo was slapped with a $3 billion fine in the US. Honda has been overwhelmed by competition in the small-sedan segment. And Nokia has retreated globally as a technology firm,” he said.
Meanwhile, PAL announced layoffs affecting about 300 workers after the carrier posted losses in 2019, with more financial difficulties expected due to the impact of the coronavirus this year.
Separately, the Department of Labor and Employment (DoLE) was urged to look into industries affected by the rapidly-spreading coronavirus outbreak.
“There is no end in sight yet and more countries are implementing drastic measures to keep their citizens safe, including our own,” Senator Juan Edgardo M. Angara said in a statement Sunday.
Philippine Airlines (PAL) on Friday announced layoffs of 300 ground-based employees following the impact of travel restrictions and flight suspensions due to the epidemic originating in China.
Mr. Angara asked the Labor department to conduct a survey of all companies laying off employees due to the outbreak to better assess the need for worker assistance.
He said not all companies can offer separation packages to employees. PAL grante laid-off workers separation benefits, travel privileges, and career counseling.
He cited possible disruptions in smaller firms in the tourism industry, such as bed and breakfast operators and vehicle rental companies.
“May mga tulong pinansyal na nakaloob sa ating Department of Labor and Employment na pwedeng gamiting pantawid habang wala pang nahahanap na kapalit na trabaho (DoLE can offer financial assistance which can tide over workers while they are looking for new jobs),” he said.
Mr. Angara, who chairs the chamber’s Finance Committee, said the 2020 General Appropriations Act allocates some P112.62 million for DoLE’s Adjustment Measures Program and another P6.8 billion for its Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers or TUPAD.
“This way they will be less prone to external shocks and continue to provide jobs to our people, uplift their communities and bring the Philippines closer to being an industrialized nation,” he said. — Genshen L. Espedido, Charmaine A. Tadalan