Olongapo SubicBay BatangGapo Newscenter

Monday, November 21, 2005

FedEx to prioritize RP employees’ relocation

SUBIC, Zambales: Logistics firm Federal Express Corp. said it will prioritize the relocation of Filipino workers to other parts of Asia upon the closure of its Subic operation in 2008.

Clifton Chua, FedEx managing director for Thailand, Indochina and the Philippines, said the US-based cargo carrier will transfer Filipino workers affected by the closure as long as they can comply with the company’s employment standards.

“FedEx workers in our Asian hub in Subic will be relocated in our regional operations if they are willing to be transferred and if they meet our standards,” Chua told reporters on Friday.

While refusing to disclose the number of workers affected, Chua said the impact would be minimal since most of the Subic workers could be transferred to other operations in the Philippines. FedEx employs 700 workers in its Subic hub.

In announcing the relocation of its $150 billion hub to Guangzhou, China, by December 2008, FedEx said it would still maintain its presence in the Philippines and improve operations in Manila by providing back-office work and centralizing some services.

FedEx said its new hub in Southern China, will be built on a 63-hectare property in Guangzhou’s Baiyun International Airport, which is expected to employ 1,200 people and host 228 flights weekly.

The cargo carrier has 15 daily flights from Subic to 19 major cities across Asia. Chua said that while the company can still construct two more parking lots in Subic as part of its expansion program, it can no longer expand beyond 2008, compelling the cargo carrier to move to China.

“This is already the full capacity of our Subic hub and we need to consider further expansion as required by the demand of our customers,” he said.

Subic Bay became FedEx’s Asia-Pacific hub in September 1995.
--Angelo S. Samonte, Manila Times

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