The Department of Labor and Employment (DOLE) 7 has conducted an on-site inspection and coordination meeting following reports of manpower reduction at an export-oriented seafood processing company in the Mactan Export Processing Zone (Mepz) in Lapu-Lapu City.
DOLE 7, in a press statement on Thursday, May 28, 2026, said the inspection sought to verify reports of reduced deployment, assess the condition of affected workers, and coordinate with the company and manpower agencies regarding compliance with labor laws and regulations.
“During the meeting, company management explained that the reduction in manpower was primarily due to challenges currently affecting the country’s crab export industry, including recent restrictions on certain Philippine crab exports to the United States,” DOLE 7 said.
Production decline
The company stated that the displacement resulted from lower production requirements and reduced market demand, matching reports that at least 222 workers from a frozen seafood manufacturing company inside Mepz 1 were abruptly displaced. The affected workers were told to halt work on May 16 allegedly without prior notice, leading to industry-wide concerns over regulatory compliance issues affecting crabmeat product exports.
DOLE 7 gathered information indicating that around 245 agency-hired workers were affected by the reduction in deployment. One manpower agency noted that some displaced workers have already been reassigned to other client companies within the economic zone, while the processing company clarified that its regular employees remain employed and continue to report for work.
US restrictions
In a report published in May 2026, the US National Marine Fisheries Service found that Philippine blue swimming crab fisheries do not meet US Marine Mammal Protection Act import standards because of insufficient evidence of effective marine mammal bycatch monitoring and reporting systems. The agency determined that the Philippines has not adequately demonstrated the required documentation or a comprehensive program to track marine mammal mortality and serious injury in crab fishing operations.
As a result, crab product exports to the US face regulatory compliance restrictions linked to unresolved risks of marine mammal bycatch, including impacts on vulnerable species such as the Irrawaddy dolphin.
Welfare assistance
Kim Francisco, Public Employment Service Office manager for Lapu-Lapu City, said he visited the company, which is currently preparing a proposal for financial assistance subject to the approval of the company owners. Meanwhile, the local government, led by Mayor Ma. Cynthia “Cindi” Chan, distributed five kilograms of rice to 109 displaced workers on Friday, May 29, through the City Social Welfare and Development Office led by Sheila Baylosis.
Regulatory enforcement
DOLE 7 will schedule a clarificatory conference with relevant stakeholders to gather more information on the status of affected workers, monitor redeployment efforts, and ensure strict compliance with labor standards and welfare protections.
