About 30 per cent of garments workers in the Philippines are likely to be furlough until the end of the year due to weak demand resulting from COVID-19 pandemic, says the Confederation of Wearable Exporters of the Philippine (CWEP). Garments factories in Philippines are operating at downtime to comply with safety protocols. The capacity of these factories is projected to decline by 40 per cent in the third quarter, points out Maritess Agoncillo, Executive Director.

Agoncillo says to cope with sluggish demand, several factories repurposed their operations to produce medical-grade personal protective equipment in response to the government’s request to locally produce the PPEs and save jobs. Factories that agreed to repurpose operations had to compete with imports. Repurposing program attracted $35 million in investments and saved 7,450 jobs amid the weakening of the global economy.

Other factories adopted rotational work basis, allowing workers to report to work for at least two weeks. Yet most factories are still operating, at 40 per cent to 50 per cent of their capacity. The trade body is finalizing its report on the costs of operating in the ‘new normal’ and its impact on operations and profitability.