The shortage of apparel exporters is aggravated by the failure of some companies to comply with social standards like labor laws.
A brief prepared by the Philippine Exporters Confederation Inc. (Philexport) quoted the Foreign Buyers Association of the Philippines (FOBAP) as saying Filipino manufacturers and exporters of garments and apparel should make their operations socially compliant to increase acceptance of their products by foreign buyers.
“As of now, we have a severe shortage of suppliers for export and we found that there are some which are existing however, (they are) not (socially) compliant,” said Robert Young, trustee for the textile, yarn and fabric sector of Philexport and president of FOBAP.
Young said in some cases, these companies are not even aware of the auditing system on social compliance such as no child labor, compliance with the minimum wage, safety of the workers and other Department of Labor and Employment rules, regulations and requirements.
Young said importing countries, especially the United States, European Union, Canada and Australia are becoming “very strict” in ensuring all imported goods are manufactured by socially-compliant factories.
“New rules …are now introduced (and compliance) will have to be updated otherwise the goods will be denied entry… This will cost delay and losses to the factories in the Philippines,” said Young, citing as examples the rules and regulations on the use of chemicals and origin of materials.
FOBAP is set to conduct the second season of the corporate social responsibility (CSR) road show related to garments and apparel industry in March and April.
The group plans to expand the coverage of the road show to the Bicol area, two provinces in Mindanao such as Cagayan de Oro and Davao or Cotabato where FOBAP is sourcing some of its apparel.
Participants to the lectures of experts from the foreign buyers include the micro, small and medium enterprises and even big companies with 2,000 employees, he said.
Young said there will be at least four to five factories of exporting companies in each province that will be participating in the CSR road show.
Young said awareness to social standards will give exporters a chance to get first in-line to supply big buyers.
The first season of the CSR road show over a year ago was conducted in Cebu, Davao, Pampanga, Bataan, Bulacan and two areas in Metro Manila.
He said four of five suppliers located in Bataan Freeport zone have qualified to be exporters following their participation last year.
