By HENRY EMPEÑO | Subic Bay Freeport

FINANCIAL losses and disrupted supply chain brought about by the new coronavirus disease (Covid-19) pandemic have thus far forced at least 20 companies in this Freeport to retrench close to 3,500 workers.

A report from the Labor Department of the Subic Bay Metropolitan Authority (SBMA) showed that the affected firms applied cost-cutting measures like forced leave, compressed workweek schedules, or outright termination of workers since February when the Covid-19 outbreak began to hurt business activities worldwide.

As of June 2, the SBMA said a total of 2,435 workers have been placed on forced leave while 124 others were bumped off by compressed workweek schedules because of low demand for company products, or due to lack of materials and supplies for production.

Meanwhile, a total of 883 workers have been terminated from employment since mid-February due to financial losses suffered by their companies.

The companies with most number of separated employees during the pandemic were computer device manufacturer Wistron Infocomm (Philippines) Corp., with 551 affected workers; theme park operator Subic Bay Marine Exploratorium, Inc., with 110; and importer Simon & Stanley International Trading & Development Co., with 74.

Wistron also placed hundreds of workers on forced leave in February and March before finally separating 551 employees last April.

Business officials here said more lay-offs could be expected in the future, even as the Subic agency began allowing more business operations under the general community quarantine (GCQ).

Ship repair firm Subic Drydock Corporation (SDC), for example, is scheduled to separate 52 employees on June 25 after implementing mandatory leave for 149 workers on May 1 to 15.

Subic Drydock administrative manager Diana Ross Mazo explained that the imposition of enhanced community quarantine (ECQ) last March and the cancellation of project bookings “forced the business to shut down for two months without revenue.”

Mazo added that the SDC has recalled back to work 40 percent of its employees as the company reopened in a staggered fashion starting May 18 and was set to “gradually increase capacity in support of the ‘new norm’.”

“However, based on careful review of our operation, we need to reduce manpower by separating some of our employees effective June 25,” she said.

Mazo said the company will give the separated workers the applicable 13^th month and service incentive leave pay, as well as half month pay per year of service, and with severance pays to be given in two separate checks: one dated June 26 and the other dated July 26.

According to the Subic Bay Freeport Chamber of Commerce (SBFCC), as much as 96% of the 200 Freeport businesses surveyed by the SBFCC last April said they were affected by the Covid-19 crisis, with 60% totally shutting down their operations and 36% being forced to slow down since the start of the enhanced community quarantine (ECQ).

Among those allowed to operate, more than 45% did so with a workforce equivalent to only 10% of their original operational requirement, the SBFCC said.

SBMA Labor Department manager Melvin Varias said the SBMA Labor Department is closely monitoring the implementation by Subic companies of their retrenchment measures to ensure compliance with labor laws.

Prior to the Covid-19 crisis, various locators in the Subic Bay Freeport Zone employed a total of 138,940 workers, with close to 70% in the services sector and more than 15% in manufacturing, Varias said.

The terminated workers comprise about 0.6% of this total.