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Workers’ right under attack at Nexperia Philippines

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5 April, 2024On April 5, 2024, Nexperia Philippines Inc., a significant player in the semiconductor industry, made a number of layoffs impacting union officials and breaching the terms of the collective bargaining agreement (CBA). 

Prior to the layoffs, Nexperia closed its sensors department, extending voluntary separation packages to the impacted workforce. The company announced plans to relocate the production line to Thailand, citing low production volumes as the justification for its actions. However, this reasoning doesn’t reflect the reality on the factory floor, where workers are mandated to work on holidays and struggle to get leave approvals, while production outputs rise.

The crackdown on the workforce began in September 2023, with the termination of eight workers, including three union officials. As of April 2024, an additional 54 workers were temporarily laid off for six months, and another 72 face upcoming layoffs.

In response, the Nexperia Philippines Workers’ Union filed a complaint accusing the company of unfair labour practices and engaging in union-busting tactics. IndustriALL affiliate, the Metalworkers Alliance of the Philippines (MWAP) expressed concerns, highlighting that the dismissals violate both the CBA and established seniority practices.

“MWAP strongly opposes the mass layoffs and union busting at Nexperia. The company must immediately reinstate the  workers, and stop these series of layoffs that are affecting the jobs and the lives of 400 workers,”

said a MWAP representative.

IndustriALL general secretary , Atle Høie, has formally addressed Nexperia Philippines Vice-President Gareth Hughes. In his letter, expressing that the dismissal of union officials is a direct assault on the workers' rights, pressing the company to adopt immediate remedial measures. 

“We call on you to consider the impact these layoffs have on the lives of individuals, who have dedicated years of service to Nexperia. Our demand is for fair treatment, respect for the terms of our CBA, and the cessation of actions that undermine job security.

said Høie.

Nexperia, headquartered in the Netherlands and founded by Philips in 1981, was acquired by Wingtech Technology, a company with partial Chinese state ownership, in 2018. Its product ranges from diodes, transistors, ESD protection devices, as well as analog and logic ICs, positioning it as a key figure in the semiconductor industry.