The industry group has written to President Ferdinand R. Marcos Jr. expressing its opposition to the PHP100-legislated wage hike as that will worsen business conditions of manufacturers in the sector, CONWEP executive director Maritess Jocson-Agoncillo said.

The headcount in factories in the sector has been declining since 2022, down by 2 per cent to 205,800 jobs. It further dropped by 11 per cent last year to 182,600 jobs, Agoncillo was cited as saying by a domestic news agency.

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CONWEP expects the downward job trajectory to continue this year, with the figure projected to drop further by 12 per cent—or a retrenchment of 21,920 employees—to 160,688.

Operating costs of factories have increased following the wage hikes approved by Regional Tripartite Wages and Productivity Boards in regions 3, 4A and 4B and, with the most recent adjustment implemented in the fourth quarter last year, she said.

The industry body has suggested a government inflation subsidy to minimum wage earners similar to the labor department’s COVID-19 Adjustment Measures Programme (CAMP) instead of a legislated wage increase.

“We request a two-year ‘inflation subsidy’ to allow the industry to recover as the global demand for apparel exports remains soft until March 2026,” it added.

CONWEP also wants the department of trade and industry and the department of foreign affairs to work on a sectoral preference programme with major foreign buyers and partners across the world to cultivate a more conducive business environment in the wearable sector.

Fibre2Fashion News Desk (DS)