Labor group: Surge of CBU vehicles in local market leads to displacement of local workers

ALABOR group on Sunday alleged that the surge of imported cars in the local market has led to the displacement of hundreds of workers.

In a phone interview, Philippine Metal Workers Alliance (PMA-Sentro) President Ruel Punzalan said the nontariff entry of imported completely built-up (CBU) vehicles has weakened demand for locally manufactured cars.

“What is now [being] sacrificed are [the jobs] of Filipino workers due to weakened sales in the Philippines,” Punzalan said.

Dwindling work force PUNZALAN added that a Japanbased firm with local manufacturing operations has retrenched 401 workers last year due to poor sales.

“Last July, another 40 person [from the same company] were also facing the [same] situation,” Punzalan said.

Yet another Japanese car manufacturer also imposed temporary lay off of 70 of its employees and started offering voluntary retirement to its staff because of dwindling operations.

Punzalan said the extent of the impact of imported cars to labor goes beyond local car manufacturing and also extend to its supply chains like tire and mag wheel manufacturers. Protecting national interests THE continuous entry of imported CBU cars from Thailand, Indonesia and Japan prompted PMA to file a petition to impose safeguard measures for imported car manufacturers at the Department of Trade and Industry (DTI).

He noted they took it upon themselves to call on the government to restrict the entry of imported cars since the said international car manufacturers would not do so.

“The employers are allowing this arrangement because they still earn either way,” Punzalan lamented.

And who ends at the losing end of the said arrangement?

“It is not only the workers, but also the government since some of these imported cars have no tariffs,” Punzalan said.

The labor leader said they are now waiting for DTI’s action on their request.

“We hope they will meet with us so we could personally tell them our concerns,” Punzalan said.

Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) Secretary-General Joshua Mata vowed to support PMA, which is among their affiliate labor unions.

“We will also help in clamoring for safeguards for automotive industry since we fear it will lead to massive job losses if not addressed,” Mata told the BusinessMirror in a separate interview.