Peza trying to save jobs of 800 SS Ventures workers

MARIVELES, Bataan—The Department of Labor and Employment (DOLE) said representatives of the Philippine Export Zone Authority (Peza) are currently working out a way to keep local shoe-manufacturer SS Ventures International Inc. (SSVII) from shutting operations by year-end by finding another major client.

The Central Luzon office of DOLE issued a press statement that said it contacted immediately the management of Peza and SSVII following a statement from Adidas Group that Adidas and SSVII mutually agreed to end their partnership on December 31, owing to the low demand for vulcanized shoes in its international markets.

With the contract withdrawal of the international sportswear giant, SSVII, located at the Bataan Economic Zone (BEZ) in this town, faces imminent closure.

But a law was already enacted last month converting BEZ into Freeport Area of Bataan (FAB), with a new supervising authority already being established. The set of the implementing rules and regulations of the FAB law is also currently being made.

The Central Luzon office of DOLE said that in June 2009, SSVII reported that its main client Adidas would not renew its contract and severe their partnership by December this year.

In April DOLE said it received a report from SSVII that the shoe manufacturer will be undergoing flexible work arrangements (job rotation) from April 1 to September 1, 2009 involving 1,568 workers to cope up with the global financial crisis. To date, SSVII has extended this work arrangement.

DOLE stressed that it has not yet received any notice of closure from SSVII.

The labor agency said SSVII has a reputation for partnering with international shoes companies for the manufacture of quality shoes.  It was the local partner of Reebok in 1996 and Nike from 1997 to 1999.

Today, aside from manufacturing quality shoes for Adidas, it also manufactures for Vans USA for its European and USA markets.

DOLE said SSVII is also the first company in the Philippines through its local marketing subsidiary to offer, via e-commerce, personalized athletic shoes to customers.  For a fee, customers can style their shoes, choose colors and put distinct logos.

Earlier, Adidas vowed to help SSVII’s 800 employees who face unemployment.

Emmanuel Puno, president of Adidas Philippines, revealed that they are already coordinating with a nongovernment organization (NGO) that would directly interact with the soon-to-be-displaced employees in order to help them. He did not identify the NGO.

Ildefonso Tario, former legal counsel of the workers’ union at SS Ventures, revealed that the shoe firm has a history of poor labor relations with its employees, among which is its nonpayment of employees’ salaries.

He said the workers’ union has filed complaints against SSVII with the National Labor Relations Commission. –Butch Gunio / Special to the BusinessMirror