Businesses in Cebu have raised concerns over the government's sudden declaration of a three-day work suspension tied to the hosting of the 48th Association of Southeast Asian Nations (Asean) Leaders Summit, warning that the abrupt move disrupted operations and added pressure on firms already navigating a difficult economic environment.
Proclamation 1239 expands coverage
The concern came after Malacañang issued Proclamation 1239 on May 5, 2026, amending an earlier order and expanding the declaration of special non-working days from May 6 to 8 to include Cebu City and Mandaue City. The earlier proclamation had initially covered only Lapu-Lapu City and the municipality of Cordova.
Signed by Acting Executive Secretary Ralph Recto by authority of President Ferdinand Marcos Jr., the proclamation cited the need to alleviate traffic and ensure the safety of delegates attending the 48th Asean Summit and Related Meetings in Cebu.
The order noted that Cebu City and Mandaue City were identified as transport routes and key areas for Asean delegates, prompting the government to include the two highly urbanized cities in the work suspension.
No work, no pay policy
According to the Department of Labor and Employment, special non-working days follow the no work, no pay principle unless there is a favorable company policy or collective bargaining agreement in place. Employees who report for work during special non-working days are entitled to an additional 30 percent of their daily rate for the first eight hours, equivalent to 130 percent of regular pay. If the special non-working day also falls on an employee's rest day, workers are entitled to an additional 50 percent of their daily wage, or 150 percent of regular pay.
Late announcement draws criticism
In a statement, Barbara Bambi Gothong-Tan, president of the Mandaue Chamber of Commerce and Industry, said the late announcement created operational bottlenecks, staffing gaps, and reduced productivity across the business community.
The sudden announcement of a three-day work suspension has understandably created disruption across the business community, Gothong-Tan said.
She noted that companies operating on tight schedules, particularly those in manufacturing, logistics, retail, and services, were among the most affected.
For companies operating on tight schedules, especially in manufacturing, logistics, retail, and services, abrupt pauses in operations translate directly into delays, added costs, and in some cases, lost revenue opportunities, she said.
Gothong-Tan added that unpredictability in government announcements could weaken business confidence and complicate planning for firms trying to remain competitive.
More importantly, such unpredictability undermines business confidence and makes planning more difficult, especially for enterprises that are already striving to remain competitive — or simply to stay afloat, she said.
Chamber calls for consultation
Despite the criticism, the chamber said it recognizes the importance of hosting high-level international events such as Asean meetings, but urged authorities to adopt a more consultative and transparent approach moving forward.
The chamber recommended that the government provide sufficient lead time before implementing work suspensions or major policy changes, engage the private sector early in the planning process, and consider localized suspensions instead of wider shutdowns to minimize economic disruption.
A more predictable and consultative approach will go a long way in balancing national priorities with economic continuity, Gothong-Tan said.
MSMEs also affected
The Filipino-Cebuano Business Club Inc., that represents Cebu's micro, small and medium enterprises (MSMEs), also expressed concern over the impact of abrupt holiday declarations on smaller enterprises.
Sudden holiday announcements disrupt MSME operations, staffing, deliveries, and sales. Small businesses need advance notice for proper planning and business continuity, said Rey Calooy, the group's chairman emeritus.
Government officials earlier said Cebu's hosting of the Asean meetings is expected to generate tourism activity, investment exposure, and business opportunities for the region.
