Honda plant closure leaves up to 2,000 jobless in the Philippines
As many as 2,000 workers are expected to be directly and indirectly affected by the closure of the Philippine assembly line of Honda Motor in Santa Rosa south of Manila planned for March. The decision comes as part of Honda’s global restructuring and “optimisation of global capacity.”
According to Alan Tanjusay, spokesman for the Trade Union Congress of the Philippines, on top of Honda Car Philippines’ almost 400 regular employees that will lose their job, many more at parts suppliers will be thrown out of work.
“The bigger problem is the up to 2,000 contractual workers who work in six Honda parts suppliers,” Tanjusay said, saying they will receive no back pay or separation benefits.
The Philippine Department of Trade and Industry has decided to step forward to help, meeting with company executives to discuss alternatives and how to minimise the negative impact.
Shutdown after 28 years presence in the Philippines
Honda Cars Philippines, which produces passenger vehicles BR-V and City, began manufacturing in the Philippines in 1992 with local partners – Ayala-led AC Industrial Technology Holdings and Rizal Commercial Banking – at a planned production capacity of 30,000 per year. However, only 7,000 units were made in 2019.
It is understood that Honda will move this production Honda to larger assembly bases in Thailand and Indonesia. The carmaker said it will continue its sales and after-sales service operations in the Philippines.
Overall, Honda has grappled with an industrywide sales slowdown in the Philippines after the government imposed tax on car purchases in 2018. Honda sold 20,338 units in the Philippines last year, down by 12.7 per cent.
As many as 2,000 workers are expected to be directly and indirectly affected by the closure of the Philippine assembly line of Honda Motor in Santa Rosa south of Manila planned for March. The decision comes as part of Honda’s global restructuring and “optimisation of global capacity.” According to Alan Tanjusay, spokesman for the Trade Union Congress of the Philippines, on top of Honda Car Philippines’ almost 400 regular employees that will lose their job, many more at parts suppliers will be thrown out of work. “The bigger problem is the up to 2,000 contractual workers who work in six...
As many as 2,000 workers are expected to be directly and indirectly affected by the closure of the Philippine assembly line of Honda Motor in Santa Rosa south of Manila planned for March. The decision comes as part of Honda’s global restructuring and “optimisation of global capacity.”
According to Alan Tanjusay, spokesman for the Trade Union Congress of the Philippines, on top of Honda Car Philippines’ almost 400 regular employees that will lose their job, many more at parts suppliers will be thrown out of work.
“The bigger problem is the up to 2,000 contractual workers who work in six Honda parts suppliers,” Tanjusay said, saying they will receive no back pay or separation benefits.
The Philippine Department of Trade and Industry has decided to step forward to help, meeting with company executives to discuss alternatives and how to minimise the negative impact.
Shutdown after 28 years presence in the Philippines
Honda Cars Philippines, which produces passenger vehicles BR-V and City, began manufacturing in the Philippines in 1992 with local partners – Ayala-led AC Industrial Technology Holdings and Rizal Commercial Banking – at a planned production capacity of 30,000 per year. However, only 7,000 units were made in 2019.
It is understood that Honda will move this production Honda to larger assembly bases in Thailand and Indonesia. The carmaker said it will continue its sales and after-sales service operations in the Philippines.
Overall, Honda has grappled with an industrywide sales slowdown in the Philippines after the government imposed tax on car purchases in 2018. Honda sold 20,338 units in the Philippines last year, down by 12.7 per cent.
