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Workers’ Digest
Special Issue
June 2009

Appeal for Solidarity from Export
Zone Workers in the Philippines

More than 300 workers of Paul-Yu Philippines Corp., a Taiwanese-owned factory in the Mactan Export Processing Zone in Lapu-Lapu City, Philippines producing lamp shades for the export and local market, have been suspended for 30 days for engaging in a work stoppage in support of seven suspended leaders of their workers association.


The one week of work stoppage partially paralyzed the operations of the company as around 400 workers have participated while only a hundred workers were left working.

The suspension of seven leaders of the Paul Yu workers are in retaliation for an earlier protest action last May 8 and the filing of a case last May 21 against management’s numerous unfair labor practices. The preventive suspension on the seven was slapped by management supposedly for an “illegal strike” conducted last May 8.

The May 8 protest cannot be considered an illegal strike for management agreed to face the workers in a dialogue together with officials of the Philippine Export Zone Authority (PEZA). In the minutes of the dialogue that was duly signed by PEZA officials, it is stated that there will be no retaliatory action against workers involved in the protest.

Paul Yu management is turning the tables on the workers for it is the company that is guilty of illegal acts and unfair labor practice which is spelled out in the case the workers filed last May 21 at the Labor Department. Among these infractions is the three-day workweek implemented since December that lacks proper documentation and due notice with the Labor Department. Moreover, management is reducing the workdays for regular workers even as it continues to outsource 40% of its production to contractors.

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