Thousands of garment workers have been laid off in the Philippines. Companies blame the retrenchments on the global recession, inflation, tight financial conditions, supply chain issues, increasing gas prices and the conflict between Russia and Ukraine. More than 9,400 workers have already been laid off or placed on forced leave, a figure that represents 3.5 percent of the 2,70,000 workers in the apparel, shoes, bags, and textile sections of the country’s garment industry.

High costs, including labour costs, are forcing companies to consider moving to lower cost countries such as Vietnam, Cambodia, and Indonesia. Only 53 percent of the total workforce in the Philippines is actually paid the legal minimum wage. Companies adhere only to the bare minimum of labor regulations in pay and benefits and require workers to work 12 hours overtime each week to meet production quotas. The companies also openly threaten workers against taking action to fight for better pay and conditions. About 20 per cent to 30 percent of the workers are employed on a contract or casual basis.

The monthly wage in the Philippines is barely above the official poverty threshold for a family of five. Workers in the international garment industry are paid poorly, and work long hours, often without overtime to meet orders and quotas.