Garment industry sees retrenchments

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The continuing global economic slowdown is expected to displace a maximum of 10 percent of the 280,000 estimated total workers in the apparel, textile, garments, and leathergoods industry in the country.

Marites Jocson Agoncillo, executive director of the Confederation of Wearable Exporters of the Philippines , said during a virtual press briefing that 3.5-4 percent of workers have been temporarily retrenched, including the 4,000 from five garment firms in Cebu.

Aside from the global economic slowdown, Agoncillo cited disruption in global supply chain, labor cost, access to raw materials, logistics and compliance risk issues. This is the reason that customers and brands have to take a conservative posture and cut back and cancellation of order projections. Brands and buyers would rather move their existing inventories in the stores. “This is what we are up against when orders are canceled midstream,” she said.

 

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