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EVEN with mitigating measures in place, the Department of Labor and Employment in Central Visayas (DOLEe-7) said business establishments need to set up more safety nets to cushion the impact of a global recession.
Elias Cayanong, DOLE-7 director, cited a report from the National Economic Development Authority (Neda) which said that the country was doing well as of last month.
?We are not feeling (the financial crisis) yet. That's why some companies have to prepare now,? he said.
He said some of these measures adopted by companies include compressed work week and livelihood training for displaced workers.
?(Through the) the compressed work week, they are improving their productivity. (And through) training, they want to enhance the people to be more productive and become more competitive,? he added.
Cayanong said some companies have adjusted by providing livelihood to retrenched workers.
?One thing is that they are reducing expenses by reducing the working days. Some benefits are curtailed while some are expanding their marketing arm,? he told .
He said other companies looked at Europe and Russia as new markets, reducing their exports to the United States.
Because of the recession and our expansion to other countries, exports to US dropped from 60 percent to over 10 percent.
While receiving reports about retrenchment and unemployment figures, Cayanong said the number was erratic.
?On our part, we have already 59 livelihood projects for the informal sector. These are people who are self-employed. We provide them with training. We provide them with finances,? he said.
Cayanong said DOLE-7 infused almost P9 million for the informal sector as part of the government's Poverty Alleviation Program.
Livelihood projects for the formal sector or rank and file include grocery stores, canteens and native chicken production.
Cayanong said the manufacturing sector, specifically the furniture-making business, is the hardest hit in the crisis.
?The first problem at the time was the depreciation of the dollar. The exports now are becoming more expensive. The dollar recovered now, which ranges from P48.50 to P49 to the dollar, probably this development helped sustain also our market abroad, especially the US,? he said.
He also said the unemployment rate in Central Visayas is still better than other regions due to the tourism and business process outsourcing and heavy industries.
The Mactan Export Processing Zone is still the major employment generator in Cebu province, said Cayanong, who added that there is an average of 80,000 to 120,000 employees in the area.
