RP becoming a sweat shop?

[jpdm]

This is one of the top news of Malaya Business Insights dated Nov.25, 2009.

This is definitely a bad news for the country trying to attain industrial development and economic growth.

I hope we can reverse this tide and make our economy stronger.

RP becoming a sweat shop?


By AMADO P. MACASAET
Malaya Business Insights
Nov. 25, 2009



The time when exports of furniture were made solely of indigenous products is long gone.


The hope of using more local textiles in the Philippine garments exports is also gone.


The local content of electronic and semi-conductor exports has not increased. The dependence on labor value has not changed much.

There is a clear trend to import raw materials used in the production of Philippine export products. A random survey conducted by Malaya Business Insight shows that the Filipino exporters of furniture import their wood requirements from Malaysia.


The reason is not because there is a ban against felling hardwood. The reason is there is hardly any hardwood left in what used to be rain forests in the Philippines. In fact, a large number of yards now import lumber from Brazil, according to a Chinese businessman who was once big in lumber.
A few of the textile mills were increasingly producing materials for the local garments industry. Then China lowered the boom. China came into the picture with cheap labor. In time, the textile industry of the world succumbed to China, the Philippines not excluded.


Yet, a garments manufacturer claimed that the China itself is having problems with its garments business. World demand has not recovered. China then turned to developing its domestic market. The little problem is the Chinese do not have that much of disposable income to exert demand pressure on garments.


Sources in business circles intimated that semi-conductor and the electronics industry have not recovered from the slump in world demand. Therefore, the source said, the production and development of local components have practically grounded to a halt.


Now the garments and furniture industries are also relying on imported components. The source said textile, semi-conductor and electronics industries are down by at least 40 per cent. Asked why the recovery is slow if there is recovery at all, the source explained that the $750 billion bailout money for failed businesses in the United States "is all gone." Very little of it, he said, went into the hands of consumers who were expected to use the money to purchase Philippine-made products.


The source also pointed out that the American consumers in the middle and high-income classes are scared to go on massive spending. He explained that the experience of Bill Gates losing $6 billion in the value of his shares in the New York Stock Exchange and the much bigger $25 billion paper loss in the value of the shares of Warren Buffet scare the Americans. The big losses of Donald Trump, the source said, added to the scare.



The psychological effects of these huge, un-incurred losses are forcing the American consumers to hang on to their money although, the source said, official figures released by the Federal Reserve and the labor department tend to show modest signs of recovery.


The scare, the source said, has substantially reduced demand for Philippine exports, particularly garments for the ordinary American consumers.


The slow-down in world demand, he said, similarly reduced the orders for Philippine-made electronics and semi-conductors.


A garments manufacturer who is licensed by an American company said the trend of relying heavily on imported parts and components will have serious effects, first, on employment generation and, second, on heavy disbursements of foreign exchange to pay for imported components.
He pointed out that instead of slowly increasing local content, some sectors in the export industry are going back to the days when labor is the only value they get from exports. "We are becoming the sweat shops of the world," he said.


A large Filipino garments producer, finding industrial peace, moved his operations to China after initially engaging Chinese seamstresses on per piece arrangement. Today, his business is growing slowly compared to his operations in the Philippines largely because of low costs of labor and materials in China.


Given the present situation, the businessman said, the best hope at the moment is exporting warm bodies. "There is plenty of work for coolies waiting out there," he said.


There is very little room for professionals, especially nurses. The hospitals in the United States are practically closed to foreign nurses. He explained that American women are taking to nursing as a profession.
"The other fields are crowded," he said.


He laments the fact that Filipinos who get masteral degrees in Ivy League schools like Harvard University try to get jobs abroad instead of coming back to the Philippines to help their country.


He explained that one of the least known secrets of the success of China is that its students who get higher education in better schools in the United States go back to their country. "The Filipino students stay abroad after finishing their courses."


"The brain drain," he said, "is also draining the economy."
As if this is not bad enough, "we are again depending on imported components for our exports," he pointed out.


http://www.malaya.com.ph/11252009/busi1.html#

[jpdm]

Just one of the examples....

[SIZE=3]Local supplier loses deal with adidas Group
[/SIZE]
Philippine Daily Inquirer
First Posted 23:49:00 11/24/2009

THE ADIDAS GROUP confirmed Tuesday its decision to end its business relationship with SS Venture Inc., which manufactures vulcanized footwear products for brand adidas.


The factory is located in the Mariveles Economic zone in Mariveles, Bataan. It currently employs 447 permanent employees and 241 short-term contract workers.


“It was agreed with the factory owner in early June 2009 that the termination would take place on Dec. 31, 2009,” the adidas Group said in a statement.


The decision to terminate the manufacturing agreement, it said, stemmed from the prevailing adverse conditions in the global export market.
“Despite these conditions, the adidas Group continued to place orders with the supplier, to enable a proper phaseout period and to support the workers’ ongoing employment,” it said.


“However, it now appears that the factory owner is unable to secure financing to continue the factory operation beyond November,” the adidas Group said.


“We regret that we have had to take this action, which has its roots in the current economic crisis,” said HorstStapf, head of footwear sourcing for the adidas Group.


“At this point in time and with Christmas approaching, our primary concern is for the wellbeing of the SS Venture workers and their families. We will continue to engage with the factory and help wherever we can“ added Stapf.

[ghosthunter]

What do you expect to happen in the long run when the only local resource we can offer is human labor?

Our local human labor pool isn't the skilled type.

Our skilled labor pool has already been sent abroad years ago.

[uls]

tagal ko na sinasabi

the Phils. is uncompetitive

the Phils. is unfriendly to business

[niky]

Becoming a sweatshop or losing our sweatshops?

Because the article suggests that the local sweatshops are going down in favor of outsourcing to China.

[uls]

when i saw the title i thought someone revived an old thread

the Phils. WAS a sweat shop when labor was cheap

ngayon pati sweat shops natin talo sa sweat shops ng ibang bansa

[CVT]

Push-pull iyan.... walang opportunities dito... Aalis ang mga edukadong tao.... Mas lalong walang mai-o-offer ang bansa sa mga investors....

8900:painting:

[tidus1203]

when i saw the title i thought someone revived an old thread

the Phils. WAS a sweat shop when labor was cheap

ngayon pati sweat shops natin talo sa sweat shops ng ibang bansa

Well today's RP sweat shops are not really "SWEAT" literally since they work in air-con rooms. But the nature of work is very "SWEATY" indeed! Its the call center agents! Sometimes that kind of work is dehumanizing... Working at night, abuse by customers, abuse by management. Sure pay is high for RP standards, but the nature of the work is what makes it IMO the new "sweat shop". No offense to call center workers here, this is strictly my views and you don't have to agree!

[Lucius]

Well today's RP sweat shops are not really "SWEAT" literally since they work in air-con rooms. But the nature of work is very "SWEATY" indeed! Its the call center agents! Sometimes that kind of work is dehumanizing... Working at night, abuse by customers, abuse by management. Sure pay is high for RP standards, but the nature of the work is what makes it IMO the new "sweat shop". No offense to call center workers here, this is strictly my views and you don't have to agree!

What people do to earn money.

[uls]

Well today's RP sweat shops are not really "SWEAT" literally since they work in air-con rooms. But the nature of work is very "SWEATY" indeed! Its the call center agents! Sometimes that kind of work is dehumanizing... Working at night, abuse by customers, abuse by management. Sure pay is high for RP standards, but the nature of the work is what makes it IMO the new "sweat shop". No offense to call center workers here, this is strictly my views and you don't have to agree!

haha

ya... kahit naka aircon, sweat shop parin

dream job pa naman yan ng madaming pinoy