PH garment exporters hit US forced labor law

Apparel exporters and manufacturers have experienced shipment delays due to the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) by US Customs and Border Protection (CBP) officials, the Confederation of Wearable Exporters of the Philippines (Conwep) claimed.

Conwep on Monday said the clearance delays had led to business disruptions, forcing the companies to implement forced leaves for many employees.

Conwep Executive Director Marites Agoncillo said that 10 factories had also reported retrenchments that affected 5,077 workers.

Conwep member-companies have reported losses amounting to some $5-6 million due to compromised orders, she continued

In line with the extended and unanticipated time period for CBP inspections, Conwep said that “it has become unsustainable to maintain full capacity without causing undue hardship to our employees.”

Of the laid-off total, 2,000 were said to be from Luenthai International Group Philippines Inc. (L&T), which is based in Clark.

“L&T Clark was compelled to implement a retrenchment program. This challenging decision is made with our employees’ well-being in mind, to spare them from uncertainty and prolonged forced leave,” Conwep said.

L&T said that “unfortunately, the recent application of the Uyghur Forced Labor Prevention Act by US Customs and Border Protection has posed unforeseeable difficulties for our operations.”

The company said that once conditions improve and orders resume, its goal was to rehire the laid-off workforce and restore normal operations.

Last month, Conwep announced a retrenchment program that affected approximately 2,000 workers.

It said the action was coordinated with the Department of Labor and Employment to ensure transparency, fairness and adherence to legal standards.

“The retrenchment was executed smoothly and peacefully. Further, we are open to address any future clarification that the retrenched employees may file before the labor office,” it said, adding that all affected employees received comprehensive severance packages in accordance with the law.

Conwep said it remained hopeful of a business rebound. It also acknowledged that the current circumstances were the result of policies beyond its control.

“Nonetheless, we are committed to handling this transition with the greatest respect, integrity and transparency, maintaining our pledge to our employees and stakeholders,” it said.