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More than to 1,500 workers to be hit by Honda unit shutdown in Philippines

MANILA: As many as 2,000 workers are expected to be negatively affected by the decision by the Philippine unit of Honda Motor to stop local production, the country’s biggest labour coalition said Monday.

Alan Tanjusay, spokesman of the Trade Union Congress of the Philippines, told Kyodo News that on top of the almost 400 regular employees of the company, many more at companies supplying parts to Honda Philippines would be out of work.

“The bigger problem is the 1,000-2,000 ‘endo’ (end-of-contract) and contractual workers who work in six Honda parts suppliers,” Tanjusay said, saying they will have no back pay and no separation benefits.

“We have sent our lawyers there,” he added, saying that the organisation has offered assistance and legal help to those who will be affected.

The Philippine Department of Trade and Industry has decided to step forward to help with the situation, meeting with company executives to discuss alternatives and how to minimise the negative impact.

“The cost structure of their local car assembly, which has about 380 workers, is basically challenged and there’s no tariff protection, thus making imports of vehicles as a cheaper alternative,” it said.

Over the weekend, Honda Cars Philippines announced it will halt production operations in March, citing the need for “efficient allocation and distribution of resources.”

Honda Cars Philippines, a partnership among Japan’s Honda Motor and local entities AC Industrial Holdings and Rizal Commercial Banking, was established in November 1990.

Its assembly line south of the Philippine capital Manila makes the Honda City sedan and BR-V sport utility vehicle models.

As many as 2,000 workers are expected to be negatively affected by the decision by the Philippine unit of Honda Motor to stop local production.

Source: Bangkok Post