Central Luzon garment factory faces closure amid US tariffs, rising wages

A GARMENT FACTORY in Central Luzon is facing closure, as rising labor costs and increasing pressure from US tariffs weigh on its operations, an industry group said.

- By Justine Irish D. Tabile Reporter

“Due to the unfavorable business environment, the latest wage increases, the reciprocal tariff issue, and related circumstances, the company investor is considering closure of a factory in Region 3,” Confederation of Wearables Exporters of the Philippines (CONWEP) Executive Director Maritess Jocson-Agoncillo told BusinessWorld.

“We are trying our best to minimize job loss as of now. We are trying our best to retain jobs,” she added.

At the Department of Trade and Industry’s budget hearing at the Senate on Monday, Senator Maria Imelda “Imee” R. Marcos revealed that a factory producing high-end garments and travel goods is set to close.

“That is 3,000 jobs... I think they are closing... We certainly do not want them to close,” she said, adding that the factory had employed around 10,000 at the height of its business.

In response to this, Trade Secretary Ma. Cristina A. Roque said that the Department of Trade and Industry is trying to help the company address its issues.