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MANILA, Philippines—Some electronic firms, among the country's top export earners, are resorting to a four-day work week to mitigate impact of the global slump, according to the Semiconductor and Electronics Industries of the Philippines or Seipi.

Ernesto B. Santiago, Seipi executive director, said in an interview Tuesday that the group expected 2008 earnings to contract by "worse than negative three percent."

Santiago was referring to the industry's performance in the 10 months that ended in October.

"The fourth quarter of 2008 is the worst for last year, so shipments for the entire year could dip lower than that," he explained.

Santiago added that while companies were reticent about their particular situation, industry players were taking steps to manage the effects of contracting markets while at the same time anticipating an upturn or recovery.

"There are customers of Seipi members who rely on funds from banks, but banks generally have restricted credits."

"At the same time, end-users of mobile phones, computers, motor vehicles and other items that Seipi members supply parts for have less spending money due to basically the same situation of the banks."

As a result, customers of Seipi members have lowered or even canceled their orders.

"This may be by 5, 10 or 30 percent but we don't know because nobody want to broadcast bad news," Santiago said.

"There may well be companies who already let go of workers, or have or are planning to cut the six-day work week to five or four days," he added.

"These are some of the best practices that companies are resorting to manage their situation."

Santiago said a shortened work week was better than laying off workers and then rehiring when the market recovers.

Aside from holding back on layoffs, other best practices that Seipi is pushing among its members include maintaining flat growth (as opposed to negative) and restructuring company organizations.

"We must take note that this situation is not peculiar to semiconductors and electronics," Santiago said. "Many other industries are feeling the effects of the global downturn."

• Shutdown of Cebu factory questioned
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• China wants new global monetary system
• Solons caution gov’t on privatization