Subic firms retrench workers due to Covid-19 losses

At least 20 companies in this Freeport have implemented retrenchment measures that affected workers because of financial difficulties brought about by the new coronavirus disease (Covid-19) pandemic.

A report from the Labor Department of the Subic Bay Metropolitan Authority (SBMA) indicated that the affected companies applied cost-cutting measures like forced leave, compressed workweek schedules, or outright termination of workers since February when the Covid-19 outbreak began to hurt business activities worldwide.

The report showed that as of June 2, a total of 2,435 workers underwent forced leave while 124 others were bumped off by compressed workweek schedules because of low demand for company products, or due to lack of materials and supplies for production.

On the other hand, around 700 workers have been terminated from employment since mid-February due to financial losses suffered by their companies.

The companies with most number of terminated employees were computer device manufacturer Wistron Infocomm (Philippines) Corp., with 551 affected workers; theme park operator Subic Bay Marine Exploratorium, Inc., with 110; and importer Simon & Stanley International Trading & Development Co., with 74.

Wistron also placed hundreds of workers on forced leave in February and March before finally separating 551 employees last April.

Meanwhile, ship repair firm Subic Drydock Corporation (SDC) is scheduled to separate 52 employees on June 25 after implementing mandatory leave for 149 workers on May 1 to 15, the SBMA report showed.

Subic Drydock administrative manager Diana Ross Mazo said in a statement that the imposition of enhanced community quarantine (ECQ) last March “forced the business to shut down for two months without revenue.”

Mazo said that despite the cancellation of project bookings, the SDC has recalled back to work 40 percent of its employees as the company reopened in a staggered fashion starting May 18.

“Over the next few weeks, SDC will gradually increase capacity in support of the ‘new norm’. However, based on careful review of our operation, we need to reduce manpower by separating some of our employees effective June 25,” she added.

Mazo said the company will abide by laws and regulations regarding the separation of workers and will provide the applicable 13th month and service incentive leave pay, as well as half month pay per year of service. Payment for the affected employees will be given in two separate checks: one dated June 26 and the other dated July 26, she added.

Mazo also said that SDC officials, along with representatives from the SBMA Labor Department and the Department of Labor and Employment’s satellite office in Olongapo City, met with the affected workers in six batches until June11 to process the termination.

SBMA Labor Department manager Melvin Varias said the SBMA Labor Department is closely monitoring the implementation by Subic companies of their retrenchment measures to ensure compliance with labor laws.

Prior to the Covid-19 crisis, various locators in the Subic Bay Freeport Zone employed a total of 138,940 workers, with close to 70 percent in the services sector and more than 15 percent in manufacturing, Varias said.

The terminated workers comprise about 0.6 percent of this total. (MPD-SBMA)

PHOTO:

Computer device manufacturer Wistron Infocomm (Philippines) Corp. is among Subic locators that have retrenched workers due to financial difficulties brought about by the Covid-19 pandemic.

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SBMA, DOLE, DepEd, investors unite to close labor gaps

Government agencies here are now working closely with the education sector and local business locators to harmonize efforts at closing the mismatch between available jobs and available manpower in the Subic Bay Freeport Zone and nearby communities.

Some 1,200 officials from government and private sectors, as well as educators and students, gathered at the Subic Bay Exhibition and Convention Center (SBECC) here last week for the Annual Labor Congress organized by the Subic Bay Metropolitan Authority (SBMA) to tackle the issue of labor gaps.

Among the attendees were representatives from the Department of Labor and Employment (DoLE),
Department of Education (DepEd), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), Public Employment Service Office (PESO), and local government units (LGUs).

SBMA Labor Department manager Severo Pastor Jr. explained that the one-day congress serves as venue to address employment issues, help students choose the right academic or technical course to take in college, and assist the education sector to determine what relevant courses or skills training they should offer.

“Most often, students enrolled in courses that are not suitable for jobs offered by investors in the Freeport, or that courses that would likely get more employment offers were not offered in schools,” Pastor noted.

As both these case result in employment gaps, Pastor said the academe should take necessary actions to address the skills-employment mismatch by offering courses relevant to the skills needed in the locality, particularly by Subic investor-companies.

“There should be a continuous flow of skilled or professional workers needed by investors in the Subic Freeport, so that we can sustain the local economy,” he also said.

SBMA records indicate that there are now a total of 1,587 business locators in the Subic Freeport, with more than 134,000 workers employed.

Meanwhile, Dir. Ben-Hur Baniqued Jr., head of TESDA- Zambales, revealed that as of October 2017, there are 7.8 million workers available in Region III. However, unemployment in the region is at 76%, which is way higher than the national average, he added.

“Underemployment (in the region) is tremendous,” Baniqued remarked. He said that while the government is considering Central Luzon as an alternative hub to decongesting Metro Manila, the industries, especially investors in the Subic Freeport, must help the academic sector by providing free training to students through on-the-job programs to further develop the local workforce.

At present, Baniqued said, there are about 430 private institutions in Region III that provide more than 2,000 Technical-Vocational Education and Training (TVET) programs for aspiring job applicants.

In the same forum, SBMA Deputy Administrator for Business and Investment Kenneth Rementilla painted a rosy picture for job generation in the Subic Bay Freeport, pointing out that the SBMA has been actively promoting business in Subic through investment missions abroad.

He added that the Subic agency has been hugely successful in drawing new investments, mostly in manufacturing, as well as leisure and tourism sectors.

Rementilla also said that because the Subic Bay Freeport is largely located within the fenced-in portion of the former US military facility here, the SBMA is now looking into expansion schemes to address the shortage of land area for further business development and to create more jobs for local workers. (RAV/MPD-SBMA)


PHOTOS:

[1] Business locators, students and teachers, as well as concerned government agencies attend the Labor Congress organized by the SBMA on June 28 at the Subic Bay Exhibition and Convention Center. (AMD/MPD-SBMA)

[2] SBMA Deputy Administrator for Business and Investment Kenneth Rementilla (center) and PMAP-Subic President Edith Geniza hand over a certificate of appreciation to TESDA Provincial Director Ben-Hur Baniqued Jr. after he addressed the Labor Congress held at the Subic Bay Exhibition and Convention Center on June 28. (AMD/MPD-SBMA)

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Subic firms absorb 2,557 ‘endo’ workers

Some 2,557 “endo” or contractual workers referred for regularization by 17 manpower service providers here were recently absorbed by their respective companies in compliance with the Department of Labor and Employment order, the Subic Bay Metropolitan Authority’s (SBMA) Labor Department said in a report.

A memo received by SBMA Administrator Wilma Eisma dated August 16, 2017, stated that Sushicor, a subcontractor of Hanjin Heavy Industries and Construction Philippines, referred a total of 1,219 workers from its six manpower subcontractors for regularization, among them: AJB Construction Services and Supply,380 workers; Rocafor General Construction Services, 310; Junior General Services, 292; Seawolf Airconditioning Contractors Inc,126; SR Marine, 80 and IRDG Engineering Services and Supply, 31.

The Subic Gateway Park, a Taiwanese industrial park in the Subic Bay Freeport Zone

Jeannies Touch Manpower Solutions Inc. referred 50 contractual workers to Nidec and 300 to Juken Sangyo for regularization.

A total of 422 workers, on the other hand, were referred by Powerlane to Lindberg, 150 as regulars; 120 to Nidec; 97 absorbed by Sanyo Denki; 42 to Mang Inasal and 13 by Yellow Cab Pizza.

Similarly, 103 workers referred by Sameer Global Manpower Services, Inc. for regularization were absorbed by Datian Shoes; 36 by Hitachi Airconditioning; seven were taken in by Kewen and five to Ropali referred.

Ocean Adventure also absorbed 20 workers referred for regularization by its manpower service provider, Total Staffing Skills.

Thirty-six contractual workers were referred by Buchan Global Services Co. to its clients Lighthouse Marina, Chia Hung and Subicwater.

The SCCD Corp., on the other hand, recommended for regularization 20 workers toTrident, 10 to Lindberg and 16 to Ringsthree.

A total of 78 workers were referred by Executive Genesis for regularization with Hokei taking in 40; Glarfab, 20; Espresso,15 and Steelfab, three.

Also 33 workers from service provider Dictado were absorbed by Meatplus. Of the 38 referred by Sol Manpower, 28 were taken in by Crese, eight by Ringsthree and two were absorbed by Lighthouse.

AZ Contracting System Service, Inc. referred 55 for regularization to Nicera, Cresc and Koushin; Koryo absorbed 50 workers; Materion Advanced Materials hired seven and Trident hired one from manpower service provider Nozomi. (Patrick Roxas, Manila Times)

http://www.manilatimes.net/subic-firms-absorb-2557-endo-workers/347111/

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SBMA STATEMENT RE: PEACE AND ORDER SITUATION IN THE SUBIC BAY FREEPORT ZONE

The Subic Bay Metropolitan Authority (SBMA) is advising its locators, stakeholders, workers and the public at large that the Subic Bay Freeport Zone continues to be peaceful and there is no threat of any kind that will endanger law and order in the Freeport.

The SBMA regrets the fact that reports about the February 13 incident at the Ocean Adventure facility were not reflective of the true state of matters thereat, causing unnecessary worry and concern.

In truth, what happened at the facility was a result of an intra-corporate dispute which is in the process of being resolved by the ownership and management of the Subic Bay Marine Exploratorium, Inc. (SBMEI) which runs Ocean Adventure.

In fact, the Department of Labor and Employment conducted its own impartial inspection of the facility yesterday, and confirmed that all operations at Ocean Adventure continue to run normally and peacefully, taking due note of the large number of young students enjoying their trip to the facility.

Again, we are informing the public that everything is normal, and that the security and safety that is expected within the Freeport Zone is and will always be there.

The SBMA continues and will always strictly enforce the rule of law in the Freeport and we assure our stakeholders and the community that the SBFZ is safe from any security threat.

We enjoin the public to put this issue to rest and move forward as we continue to make Subic Bay Freeport the best investment and tourist destination in the Philippines.

ATTY. WILMA AMY T. EISMA
Administrator

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Central Luzon workers get pay hike

Workers in Central Luzon will soon get higher pay after the National Wages and Productivity Commission (NWPC) approved on Wednesday (Dec. 9) the newest wage order for the provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales.

Labor Secretary Rosalinda Baldoz said in a statement that Wage Order No. RB III-19, which raises by P15 per day the minimum wage for workers in the six provinces and P20 per day in Aurora has been unanimously approved.

“We have unanimously affirmed the wage order for workers in retail and services establishments with less than 16 workers,” Baldoz said, adding that the Department of Labor and Employment (Dole) was able to meet its target that all of the country’s 30 minimum wage rates will be above the poverty threshold level before President Aquino’s term ends.

“This is a victory not only for Filipino workers but for all Filipinos,” Baldoz said.

The increase of P15 per day in Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales will be given in two tranches: the first P8 upon implementation of the wage order and the next P7 on May 1 next year.

Similarly, for Aurora province, the increase of P20 per day shall also be given in two tranches. The first tranche of P10 will be given upon the implementation of the order and the additional P10 on May 1, 2016.

Dole Regional Director Ana Dione said that with the pay hike, the minimum wage in Central Luzon now stands at P364 per day.

“With the increase, the highest minimum wage in the region is now P364, which is above the poverty threshold of P248 for a family of five as of December 2012,” she said.

The latest Dole-NWPC wage order applies to all minimum wage earners in the private sector in Central Luzon regardless of position, designation, status of employment, and methods by which the wages are paid.

Those who are not covered by the wage order are “kasambahays” and persons employed in personal service of another, including family drivers and workers of barangay micro business enterprises.

In issuing the wage order, the Regional Wage Board encourages establishments to adopt productivity improvement schemes such as time and motion studies, good housekeeping, quality circles, and labor management cooperation, as well as to implement gain sharing programs.

“Complaints for non-compliance with Wage Order RB III-19 shall be filed with Dole Regional Office III and shall be subject of enforcement proceedings under Article 128 of the Labor Code,” Dione said.

Any person, corporation, trust, or firm, partnership, association, or entity which refuses or fails to pay the prescribed wage rates shall be subject to penal provisions under Republic Act 6727, or the Minimum Wage Fixing Law. (JTD/Sun.Star Pampanga)

http://www.sunstar.com.ph/pampanga/local-news/2015/12/11/central-luzon-workers-get-pay-hike-446459

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SBMA hosts job matching congress to address hiring problems

The Labor Department of the Subic Bay Metropolitan Authority (SBMA) hosted on Friday the Subic Bay Freeport Labor Matching Congress to help reduce mismatch between labor demand by existing companies and the available workforce in this Freeport.

SBMA labor manager Severo Pastor said the congress served as a venue for dialogue among students, the academe, business locators, and the government to fill employment gaps in an overall effort to achieve industrial peace.

The congress was held at the Subic Bay Exhibition and Convention Center (SBECC) and was attended by sectoral representatives from the Subic Freeport, Olongapo, and Zambales. The event also drew participation from the SBMA Business Group, which communicates with business locators in manufacturing, maritime, leisure, logistics, ICT, and general business and investment.

“It is a continuing activity of SBMA as part of its corporate social responsibility to extend to students and the community its services of finding or creating suitable jobs matching their skills,” Pastor said.

He noted that employment problems in the Philippines are often caused by labor mismatch, which results in underemployment, if not unemployment.

He recalled that when South Korean shipbuilder Hanjin Heavy Industries and Construction-Philippines, Inc. started its operation in Subic Bay, it asked the SBMA for 10,000 workers as welders, plumbers, electricians, painters, and others.

“Unfortunately, we could only provide a tenth of the number asked. And the rest had to undergo trainings,” Pastor said.

He added that with the SBMA’s target of creating 100,000 jobs by the end of 2015, the SBMA Labor Department is now intensifying its efforts with the help of business locators, schools, and related agencies of the government like the Technical Education and Skills Development Authority (TESDA) and the Department of Education (DepEd).

“This why we in TESDA recommend that all high school graduating students must undergo skills development training to develop skills and interest, and later choose the right college or vocational course after graduation,” explained TESDA Officer (R3) Nomer Pascual during the congress.

Meanwhile, some business locators in the Freeport pointed out their concerns about labor mismatch to help identify and address the problems.

Quintin Ellick, owner of Contex Call Center and concurrent vice chairman of the Subic Bay Freeport Zone ICT Advisory Council, admitted that most courses offered in local schools cannot be applied in most companies in the Freeport.

Nicera Philippines Inc. human resource manager Myra Concepcion, on the other hand, revealed that they have been experiencing difficulty in hiring new applicants because most of them failed simple tests and have attitude problems.

“In one hiring, out of 1,200 applicants only 25 percent passed the simple abstract reasoning and arithmetic items; and of those who passed only 38 percent passed the interview,” she said.

Given the problems faced in hiring new applicants, the company representatives suggested that the academe should enhance the teaching of English and mathematics subjects starting in high school and also offer courses in personal development, including 5S in the workplace. (RAV/MPD-SBMA)

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Hanjin-Subic hosts international work-safety evaluation exercise

Hanjin Heavy Industries and Construction Philippines (HHC-Phil Inc.) recently hosted an occupational safety evaluation exercise conducted by the International Labor Organization (ILO) and the Association of Southeast Asian Nations-Occupational Safety and Health Network (Asean-Oshnet).

Min Hwan Choi, Hanjin’s deputy general manager for external trade, said in a statement here that the Hanjin management took great pride in hosting an exercise that provided “an opportune time for us to really showcase to the rest of the world that our occupational safety and health programs, including our facilities, are at par with international standards.”

“We are greatly honored that an occupational safety and health-related undertaking with global impact such as this [was] carried out in our Hanjin Subic shipyard,” Choi said.

“I guess there is no better workplace for this activity than our shipyard considering our very complex shipbuilding processes that entail enormous efforts to put in place more responsive safety policies to protect the well-being of our huge work force,” he said.

Senior officials of Hanjin welcomed 45 representatives from the ILO and Asean-Oshnet for the one-day General Workplace Evaluation and Risk Factor Identification Exercise that was held in connection with a three-day Training-of-Trainers (TOT) workshop held in the country from February 10 to 12.

The event was sponsored by the ILO and the Asean-Oshnet in collaboration with the Korea Occupational Safety and Health Agency (Kosha) and the Philippine government, through the Department of Labor and Employment and the Occupational Health and Safety Center.

The participants in the workshop were headed by ILO Country Director Lawrence Jeff Johnson; engineer Ho Siong Hin, commissioner of Safety and Health at Singapore’s Ministry of Manpower; Ingrid Christensen, ILO-Bangkok senior specialist on Occupational Safety and Health; Kim Kyung Hun and Kang Dong Lee of the Kosha; Consuelo Manchon of ILO-Hanoi; Nguyen Thai Hoa of ILO Vietnam; OSHC Executive Director Ma. Teresita Cucueco; and Health Control Division chief Maria Beatriz Villanueva.

The TOT workshop was primarily organized for the Asean-Oshnet member-countries that included Brunei Darussalam, Cambodia, Myanmar, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

In this training, however, Papua New Guinea and Timor Leste were given an opportunity to learn from and interact with colleagues of neighboring countries in the field of occupational safety and health (OSH).

The Asean-Oshnet has been actively working to share experiences and knowledge on OSH and to enhance safety and health working conditions among the member-countries. It has also planned and implemented various OSH programs, including training for capability-building of government institutions and their officials.

Labor Secretary Rosalinda Baldoz said the conduct of the trainers’ workshop “comes at a most auspicious time, as it will address the need to intensify the advocacy of having a safe and healthy working environment, not only in our respective countries, but in the entire Asean region and now including our Pacific Island partners of Timor Leste and Papua New Guinea, as well.”

She said the Philippines has been one with the Asean in recognizing that partnerships among the member-countries are essential in building competencies and skills in all aspects to enhance and propel the growth of the nations toward becoming first-class economies.

During the welcome ceremony at the Hanjin shipyard, Baldoz also expressed gratitude to Hanjin for allowing both local and foreign stakeholders to conduct the ocular visit and for showcasing the company’s best practices in addressing its safety and health concerns. (Henry Empeño, Business Mirror)

PHOTO:
Representatives from the International Labor Organization and the Asean-Oshnet confer with safety officers during a tour of the Hanjin shipyard in Subic Bay Freeport.

http://www.businessmirror.com.ph/hanjin-subic-hosts-intl-work-safety-evaluation-exercise/

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DOLE taskforce inks pact for industrial peace in CL

CITY OF SAN FERNANDO -- With the aim of upholding industrial peace and job preservation in Central Luzon, the Department of Labor and Employment (DOLE) Regional Office 3, in coordination with member-agencies of the newly forged Central Luzon-Regional Inter-Agency Coordinating and Monitoring Committee (CL-RICMC) recently signed a Memorandum of Commitment (MOC) at the Dole regional office in the City of San Fernando.

The CL-RICMC, which was conceived last June 2014, comprise the DOLE RO3 as lead agency, along with the regional offices of the National Conciliation and Mediation Board (NCMB), National Labor Relations Commission (NLRC), Overseas Workers and Welfare Administration (OWWA), Philippine Overseas Employment Administration, Technical Education and Skills Development Authority (Tesda), Armed Forces of the Philippines (AFP) 7th Infantry Division, Philippine National Police (PNP), and the region’s major economic and freeport zones which include the Clark Freeport Zone, Authority of the Freeport Area of Bataan, Subic Bay Freeport Zone, Luisita Industrial Park in Tarlac, TECO, and Pampanga Economic Zone.

DOLE Regional Director Ana Dione reported to Labor and Employment Secretary Rosalinda Dimapilis-Baldoz that officials representing the CL-RICMC member-agencies entered into a memorandum of commitment in order to fully and effectively implement the Dole's Administrative Order 104, Series of 2012, otherwise known as the “Operating Guidelines on Inter-Agency Coordinating and Monitoring of Labor Disputes.”

In this memorandum, the DOLE will take lead in information-gathering from tri-media or any sources on brewing labor disputes and displacement of workers due to strikes/lockouts. It shall immediately initiate pro-active assistance and provide alternative means of dispute resolution through either the Dole's Single Entry Approach (Sena), adoption of flexible work arrangements, or in the worst case, proper implementation of retrenchment procedures. Dole and its attached agencies will also provide technical assistance and developmental interventions such as alternative livelihood programs and skills development schemes to affected workers.

DOLE Assistant Regional Director Geraldine Panlilio, who is the official spokesperson of the CL-RICMC, shall handle media-related affairs and the establishment of a command center in the strike area where the CL-RICMC may convene.

Meanwhile, should labor disputes arise within the Freeport or economic zones, management of the said zones will coordinate with the DOLE, as well as its attached agencies, and shall actively participate in the above-mentioned activities as well.

The AFP and PNP on the other hand, who will be on stand-by mode as a peace-keeping team, will ensure the maintenance of peace and order, enforcement of laws, and implementation of legal orders of duly constituted authorities.

Signing the memorandum of commitment with Director Dione include NCMB National Director Reynaldo Ubaldo, NCMB Regional Director Maria Teresita Cancio, Administrative Officer Elizabeth Dizon on behalf of NLRC RO3 Regional Director Mariano Bactin, Colonel Wilfredo Villahermosa on behalf of Brigadier General Glorioso Miranda (AFP 7ID), IPSSupt Danilo Florentino on behalf of PNP Regional Director PCSupt Raul Petrasanta, Provincial Director Benhur Banigued on behalf of TESDA Regional Director Teodoro Gatchalian, POEA head Paterno Juridico, Deputy Administrator for Operations Engr. Emmanuel Pineda on behalf of AFAB Chairman Deogracias Custodio, Criselda Pascual on behalf of SBMA Labor Department Manager Severo Pastor Jr., CFZ head Evangeline Tejada, and LIP/TECO/PEZ head Primitivo Perañas Jr.

Dione, who personally thanked all CL-RICMC member-agencies for their support and cooperation during her welcome message, stressed the importance of partnership and convergence among government agencies in addressing the country’s perennial socio-economic issues on labor disputes and unemployment.

"We are very thankful for your support and cooperation on this important undertaking. Your presence here signals our partnership. The convergence of our programs and services are geared towards the development of coherent and evidence-based approaches to ease the adverse effects of labor disputes by exploring all means to give way to a lasting and a more peaceful resolution between management and laborers, especially in cases where there is presence of imminent or actual strikes," Dione said.

"Through our partnership and proactive information-sharing with one another, we can sustain labor and management relationship through continuous labor and employment education, mainstreaming of alternative dispute resolution mechanisms, and implementation of innovative approaches towards workers' empowerment," she added.

Meanwhile, NCMB Director Reynaldo Ubaldo said in his keynote message that the NCMB, under the instructions of Labor and Employment Secretary Baldoz, is targeting to institutionalize the creation of RICMC in all regions.

"We are hopeful that all DOLE regional offices, just like here in Central Luzon, would be able to establish their respective RICMC’s because the power of convergence can make a difference in addressing labor disputes and we have a pipeline of developmental interventions that would help ease and resolve industrial conflicts which are geared towards productivity and harmony within industries," Ubaldo said.

The RICMC’s objective is to take lead in job preservation, explore all remedies necessary and feasible settlement to potential or actual strike, picket or lockout, or labor dispute especially those who are considered high profile cases, and those imbued with national interest, and undertake coordinative efforts through information-sharing and data gathering. (PR, Sun Star Pampanga)

http://www.sunstar.com.ph/pampanga/local-news/2014/08/20/dole-taskforce-inks-pact-industrial-peace-360860

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DOLE slaps Hanjin subcontractor with cease and desist order

CITY OF SAN FERNANDO, Pampanga, May 7 (PIA) -- Department of Labor and Employment (DOLE) Regional Office III issued Tuesday a cease and desist order (CDO) to Hanjin Heavy Industries Corporation Philippines (HHIC-Phils) subcontractor Finback Corporation following an accident last week that claimed the life of one employee.

“29-year old Ryan Gacus obtained second degree burn from an explosion of a gas-hose of oxy-ethylene used while he was conducting cutting and fit-up work. He was rushed to the nearest hospital and sadly died hours later,” DOLE Regional Director Raymundo Agravante said.

“Based on our investigation, the probable cause of the incident is due to existence of a pinhole at the middle portion of the gas-hose used in cutting works. This might have been resulted from set-up or pulling of the hose inside the work area. With such small leak from the pinhole, workers could not detect the gas leak from the tools used. In the event that he relocated/ re-positioned the tools for a more comfortable condition in finishing the task, the damage portion might have been placed near the victim. Thus upon igniting the cutting torch the hose instantly exploded at the victim resulting to burn injuries,” Agravante explained.

In a meeting with representatives of HHIC and Finback, DOLE urged them to comply with a number of requirements.

This include conduct of Basic Safety Awareness Training to 10% of the skilled workers of Finback and submission of Employer’s accident-illness report; accident/incident report with photos attached; police report; medical abstract; employment record/contract; work methodology/procedure; employee’s profile; employee safety orientation; proof of document for acknowledgement receipt of social welfare benefits, and proof of documents for salary payments and remittance for Social Security System, PhilHealth and Pag-IBIG.

Meanwhile, DOLE is also working closely with the two companies for the provision of financial assistance and other benefits to the family of the victim. (CLJD-PIA 3)

http://news.pia.gov.ph/index.php?article=561399394106

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Strike Hampers Subic Port Operations

SUBIC BAY FREEPORT – A strike by employees of the Malayan Towage and Salvage Corporation (SALVTUG), led by the Federation of Free Workers (FFW), almost crippled this seaport operations here over the weekend.

Six vessels, including a US naval supply ship, were left at the open sea waiting for their escort tugboats that were docked due to a strike initiated by SALVTUG employees. The loss of service to these vessels would have meant a loss of millions of pesos worth of income for the government.

In a text message, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia stated, “I hope strike is resolved soon.”

He added that both Hanjin Heavy Industries Corp.-Philippines (Hanjin) and Keppel are helping out with the predicament, ensuring that port operations here are not paralyzed and are normal.

According to an anonymous source, the strike stemmed from employees who want to have the same rate as that of their international counterpart. He added that the average salary of the employees there were more than R40,000.

He said that to them it was a question of principle, but to him, it was a question of patriotism. He added that if the employees could jeopardize the country’s port operations, the protesting employees will not only succeed in doing so but might also disrupt the country’s economic state.

SALVTUG was established in November 1974 with three (3) ocean-going coastal tugs and four (4) dry cargo and bulk oil barges. Over the years, the company has kept paced with the development of Asian Ports and has continued its modernization program. Presently, the fleet has grown to thirty one (31) multi-tasked tugs, two (2) specialized crafts, one (1) crew boat, thirteen (13) barges of various types and two (2) floating dry docks.

SALVTUG and its Western Pacific Associates specialize in Ocean Towage, Marine Salvage, Logistical Support, Cargo Recovery, Wreck Removal, Underwater Operations, Barging, Anchor Handling, Buoy Installation and Ocean-Spill Cleanup in the territorial waters of the Philippines, South China Sea and the Western Pacific Ocean.(Jonas Reyes, Manila Bulletin)

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DOLE, SBMA sign deal to protect Subic Freeport workers

THE Department of Labor and Employment (DOLE) vowed to ensure the safety and safeguard the health of workers in the Subic Bay Freeport Zone amid complaints of abuse, mistreatment and even death of workers contracted by Korean company Hanjin operating inside the area.

Labor Sec. Rosalinda Baldoz and the Subic Bay Metropolitan Authority [SBMA] signed the memorandum of agreement last week that “maintains industrial peace and enforce labor and occupational safety and health standards in the Subic Bay Freeport Zone.”

 “I am pleased of this convergence of the DOLE and the SBMA to strengthen and sustain industrial peace, promote compliance with labor and occupational safety and health OSH standards, and capacitate SBFZ locator-employers and workers, all for the purpose of enhancing competitiveness, productivity, and growth in private enterprises which are the generators of decent jobs,” said Baldoz immediately after signing the MOA.

The agreement allows DOLE to regularly conduct inspection inside the SBMA to ensure compliance to the labor standards and occupational safety and health standards as well as industrial peace in the SBFZ.

The agreement also requires SBMA to submit to the rules of DOLE in labor dispute settling mechanism.

“In instances of notices of strike and lockout and preventive mediation cases, the DOLE, through the NCMB, shall provide conciliation and mediation services in accordance with the existing rules and regulations in the handling of labor disputes,” the agreement stated.

“Both parties shall also use social dialogue, such as consultation meetings among workers and locators, to further achieve industrial harmony in the free port zone,” the agreement said.

Filipino workers staged protests inside the SBMA amid complaints of abuse, mistreatment such as lack of meals and rest for those employed by Korean shipbuilder Hanjin that caused sickness and even death due to accidents by workers.

The complaints prompted the labor department’s cancellation of Hanjin’s permit to operate until all the issues on settlement and fair labor rules have been addressed.

The MOA agreement also requires SBMA to “educate” foreign employers on Filipino work culture and values, on labor laws, rules and regulations, and other labor and employment legislation, as well as on DOLE conciliation-mediation programs to promote better labor-management relations.

The SBMA is the operating and implementing arm of the BCDA for the Subic Bay Freeport Zone, which has now become one of the country’s premier tourism, industrial, and commercial center in the region. (Estrella Torres, BusinessMirror)

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ADB: ‘Philippines must take right road to inclusive growth’

The Philippines needs to ensure that economic development be felt by the masses, said an economic expert during the Asian Development Bank (ADB) Economic Forum held here in the Freeport on September 4 at the Lighthouse Marina Resort.

Norio Usui, ADB senior country economist, said that in order to fully enjoy the economic growth that the country is experiencing, key policy challenges should be discussed so that the Philippines can embark on a sustainable and inclusive growth.

Usui said that although the Philippines has a very strong services sector in the form of business process outsourcing (BPO), “it is not sufficient to address development challenges to inclusive growth.”

He noted that the services sector’s labor demand is only one percent of the total labor force and is biased towards the relatively skilled workers, thus leaving the majority of the labor force underutilized.

He said that the country should develop the industrial sector, since it can help create more job opportunities for the growing labor force.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, who also spoke during the forum, shared this view and added that inclusive growth is critical now that foreign economies are moving to Asia.

“It appears that with the present situation now in Europe and America where the economies are very bad because of the Spanish and the Greek crises, they are now really looking at Asia,” he said.

Garcia also noted that the country is enjoying a very stable economic growth, something that the Philippines has not experienced for a very long time. He attributed this to the good governance of the present administration.

“It’s a very good time for the Philippines,” Garcia asserted. “As I’ve always mentioned, I think the main reason why the foreign investors are very interested in the Philippines now is because they perceive the new administration under President Aquino as a very stable one, a very transparent one,” he added.

However, Garcia said that this development should shift down to the masses, otherwise it would be meaningless.

“How can you sustain a growth rate constantly increasing? There is a lot of pressure; there are a lot of factors that come into that,” Garcia also said. “So are we just looking into a temporary situation wherein the Philippines is on the upswing, or are we going to expect a clash with foreign economies? We must consider these things,” he further noted.

The forum was attended by SBMA officials and representatives of locator companies in the Subic Bay Freeport Zone. (FMD/MPD-SBMA)

PHOTO:
Norio Usui, ADB senior country economist, explains the need for policy changes to bring about sustained economic growth in the Philippines during a forum at the Subic Bay Freeport Zone.

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PHL, South Korea sign OSH agreement

Labor Secretary Rosalinda Baldoz has signed an agreement with South Korea that seeks to ensure the safety and health of Filipino workers employed by Korean industrial companies in the country.

The signing of the accord was seen as an offshoot of a series of industrial-related accidents involving Filipino workers employed by the Hanjin industrial shipyard at the Subic Bay Freeport Zone that led to the deaths of several workers.

The agreement with the Korean Occupational Safety and Health Agency signed on August 25 seeks to improve the occupational safety and health system in the country, according to Baldoz.

Kosha is an agency of South Korea’s Ministry of Employment and Labor.

The agreement will facilitate Korea’s financial and technical support geared to improve occupational safety and health (OSH) system.

These include:

1. An analysis of the Philippines’s policies on industrial accident prevention, workplace improvement and industrial accident compensation, and provide advice and guidelines for the enhancement of OSH policies in the Philippines;

2. Deployment of experts to the Philippines to provide assistance for the enhancement of OSH policies, especially with regard to industrial accident prevention, workplace improvement and industrial accident compensation;

3. Provision of training to the Philippines’s policy-makers/implementers in Korea so that they can learn about Korea’s experiences, including the implementation of policies on industrial accident prevention, workplace improvement and industrial accident compensation, and the management of relevant institutions. (E. Torres and J. Mayuga, Business Mirror)

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Hanjin enrolls in DOLE's Kapatiran WISE-TAV

OLONGAPO CITY - Hanjin Heavy Industries & Construction Philippines (HHICP) and the Department of Labor and Employment (DOLE) yesterday signed a Memorandum of Understanding that effectively enrolls the Korean shipbuilding and construction giant to the DOLE's "Big Brother, Small Brother" Program, otherwise known as the Kapatiran WISE-TAV, the program that encourages big companies (Big Brother) to practice corporate social responsibility by coaching small companies (Small Brother) in eventually becoming fully compliant with labor laws and occupational safety and health (OSH) standards.

Secretary Rosalinda Dimapilis-Baldoz signed the MOU on behalf of the DOLE, while President Ahn Jin Kyu signed on behalf of HHICP.

DOLE Regional Director Raymundo Agravante and Bureau of Working Conditions Director Brenda Villafuerte witnessed the signing held at the sprawling HHICP shipbuilding facility, the most modern and the largest in Southeast Asia, in Brgy. Cawag, Subic Bay Freeport Zone, in Zambales.
The MOU effectively covers 16 HHICP contractors, subcontractors, and services providers and involves 22,000 workers.

The Kapatiran WISE-TAV Para sa Mas Ligtas, Malusog, at Produktibong Manggagawa, is a flagship public-partnership program of the DOLE, and is anchored on the ILO's Work Improvement in Small Enterprises, whose action-oriented approach has long proven to link productivity and product quality to safer and better working conditions.

Baldoz, who delivered a message during the signing, hailed the HHIPC’s for enrollment in the program, as it is a big step towards instilling a culture of voluntary compliance with labor laws and occupational safety and health standards in the company.

"I consider this occasion very important and significant. This is a very good starting point of our partnership towards productivity and compliance with labor laws and occupational safety and health standards, given that the HHICP has faced a number of concerns in the past few years," she said.

She explained that the administration of President Benigno S. Aquino III is committed to create and nurture an environment conducive to sustainable businesses that creates decent jobs.

Baldoz announced during the signing ceremony that she is assigning no less than Regional Director Agravante as her focal person at the HHICP’s Kapatiran WISE TAV

"Director Agravante knows what that means, so you can call him directly because he can mobilize other offices of the DOLE under him in the region to assist you," the labor and employment chief said.

On his part, Mr. Ahn Jin Kyu said that as "Big Brother, HHICP is most willing to share its safety and health standards with its contractors, subcontractors, and services providers."

This is the second memorandum of understanding that the DOLE has signed this year under the Kapatiran WISE TAV. The first was signed last January between DOLE Region 3 and Yokohama Philippines.

To date, 79 "Big Brothers" and 804 "Small Brothers" are enrolled under the program, effectively covering 177,000 workers, who benefit from the MOU in terms of better labor conditions and safer and healthier work places.

Baldoz reiterated that its collaboration with private companies under the Kapatiran WISE TAV is meaningful for inclusive growth and the promotion of productivity and competitiveness.

“Through the Kapatiran program, the DOLE considers private sector establishments as partners in ensuring voluntary compliance to labor laws and safety and health standards. We know they play a positive and developmental role in enhancing the welfare and protection of our workers and in promoting productivity and competitiveness and sound and harmonious labor-management relations,” Baldoz emphasized. (DOLE LCO)

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SBMA hosts Region 3 dialogue on employment gaps

The Subic Bay Metropolitan Authority (SBMA) recently hosted a dialogue among executives from the business community, local government agencies and the academe to address employment gaps in Central Luzon, which is now a leading economic growth center.

SBMA labor department manager Severo Pastor Jr. said the annual Labor Matching Congress, which is now on its fifth year, has pooled together officials from the SBMA, Clark Development Corp. (CDC), and the Authority of the Freeport Area of Bataan (AFAB), as well as representatives from the Subic Bay Freeport Chamber of Commerce (SBFCC), Metro Olongapo Business Club (MOBC), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), National Economic Development Authority (NEDA), Public Employment Services Office (PESO), and various schools and local government units in the region.

Pastor, who is the concurrent president of the Subic Bay Workforce Development Foundation, Inc., said the labor-matching dialogue was held because many workers in the region remain unemployed despite the presence of four special economic zones in the area.

According to CHED Region 3 director Maura Consolacion Cristobal, the 2009 records of her office indicated that the courses that registered the highest enrolment are business education, health-related courses including nursing; information technology; and teacher education.

“We already have an excess of graduates in these courses, and we have employment gaps, both qualitative and quantitative,” Cristobal said.

She added that in order to address the over-population in the said four programs, CHED has issued Memorandum Order No. 32, which enjoined all schools not to accept enrollees in the four courses in all levels.

Cristobal added that the move was also meant to strengthen the under-subscribed programs like agriculture, engineering, science, arts and technology, and fisheries, by offering scholarship grants to students enrolling in these programs.

In Subic, meanwhile, SBMA administrator Arreza said that to maximize employment of workers in the Subic Bay area, the agency is now focusing on specific sectors where Subic has the competitive advantage. These include logistics, shipbuilding, tourism, and information technology.

“We want to make sure that we are all set up on the right direction,” Arreza said. “We are looking for our own ‘Manny Pacquiao’ — locators in the Freeport that will defeat any challenger.”

He pointed out that in the case of Hanjin, the Korean shipbuilder has in its list of orders a total of 55 ships, which amount to US$4 billion. With 40 percent of the value going to components that could be manufactured locally, the ship orders could yield about US$1.6 billion for the local economy.

“That is why we encourage a lot of entrepreneurs to explore and look into this sector, as well, and manufacture the 40 percent that Hanjin imports from other countries. This way, we can create more jobs,” Arreza said.

The SBMA official likewise announced that Hanjin also needs marine engineers that are now in short supply in the Philippines since most colleges and universities in the country have stopped offering marine engineering courses and shifted instead to nursing or IT.

“If we build these industries, the SBMA Labor Center has to provide the manpower necessary for these industries to become Manny Pacquiao,” Arreza noted.

In the dialogue, CDC vice-president for business Ernesto Gorospe said that manpower needs in the Clark Freeport include openings for pilots, business processing outsourcing technicians, call center agents, semiconductor technicians, and other skilled workers.

Pastor meanwhile thanked the CHED for accrediting some of schools in the Subic Bay Freeport that introduced new courses in aeronautical maintenance, vocational technical education related to electronics and shipbuilding, and manpower support for tourism such as catering, housekeeping, bar-tending, among others.

“These are giant little steps to patch manpower mismatch in the Subic Bay Freeport,” Pastor said. (SBMA Corporate Communications)

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SBMA Official Statement on Legenda Employees

OFFICIAL STATEMENT by SBMA Labor Department Head, Atty. Roy C. Pastor
Re: Legend International Resorts Ltd. (LIRL) Employees
Date: 20 July 2009

We have been advised that the management of Legend International Resorts Ltd. has temporarily suspended the company’s hotel, food and beverage, and related facilities, as well as its administration and support functions, and has thus temporarily suspended as well the payment of all wages and benefits to 151 of its 250 employees for next six (6) months.

In a memorandum to its employees, LIRL said it was constrained to undertake such measures due to the SBMA’s actions against the company.

To pass the blame for the situation of these employees to the SBMA is grossly unfair.

The real culprit here is the mismanagement of LIRL, which has caused the company to accrue huge debts to the Philippine government, including unpaid obligations to the SBMA, amounting to PhP850 million.

In fact, the SBMA has worked on a debt restructuring scheme with the LIRL management, which the company has not complied with.

Nonetheless, the SBMA shall do everything within its power and authority to protect the welfare of LIRL employees, especially those who have been affected by this move by the LIRL management.

The SBMA Labor Department, in particular, will look into possible labor violations arising from LIRL’s action, including its alleged failure to file the appropriate notice with the Department of Labor and Employment (DOLE).

The SBMA will definitely not allow and will never allow these employees to become victims of LIRL’s mismanagement, resulting in its continued refusal to settle its outstanding debts to its creditors.

-End of Statement-

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Subic-based Legend International Resorts Inc. suspends operations, places 250 workers on forced leave

Beleaguered hotel and casino operator Legend International Resorts Ltd. (LIRL) has suspended operations of most facilities at its Legenda Resort Hotel here, placing some 250 employees on forced leave since Saturday.

David Maund, a Hong Kong-based liquidator acting as agent for the LIRL, said in a memorandum to Legenda workers that operations will be “temporarily suspended at some of the company’s hotel, food and beverage, and related facilities.”

“The company’s administration and support functions will also be temporarily rationalized commensurately,” he added in the July 17 memo.

According to Maund, the LIRL management “has taken the difficult decision to rationalize the company’s operations” in an effort to “stem losses and preserve the company’s cash reserves.”

As a result, the firm will suspend payment of all wages and benefits to all the affected employees effective on July 18 “and until further notice for a maximum period of up to six months,” Maund added.

“This is not a termination of your employment by the company,” the official assured the affected workers. “Any accrued entitlements as at July 18 will remain intact throughout the period of suspension of wages and benefits in full compliance with law,” he said.

Maund also told the suspended workers that they will be notified should any development arise regarding the status of their employment with the company.

In the same memo to employees, Maund said efforts by the Subic Bay Metropolitan Authority (SBMA) to terminate LIRL’s lease agreement, business registration and permit to operate had led to “a very substantial deterioration in LIRL’s occupancy levels.”

These, along with the closure of the company’s casino operations since May 2006, had placed “further pressure on cash flows,” he added.

The SBMA, however, said in a statement that attributing LIRL’s current woes to SBMA’s efforts to collect payment for the company’s debts was “grossly unfair.”

“The real culprit here is the mismanagement of LIRL, which has caused the company to accrue huge debts to the Philippine government, including unpaid obligations to the SBMA amounting to P850 million,” said lawyer Roy Pastor, manager of the SBMA labor department.

“In fact, the SBMA has worked on a debt-restructuring scheme with the LIRL management, which the company has not complied with,” he added.

Pastor said in face of the suspension of Legenda workers, the SBMA will look into possible labor violations arising from LIRL’s action, “including its alleged failure to file the appropriate notice with the Department of Labor and Employment.”

“The SBMA will definitely not allow these employees to become victims of LIRL’s mismanagement,” Pastor added, saying his department’s retooling program for displaced workers will be made available to Legenda employees.

SBMA labor officials also presided on Monday over the initial conciliation meeting between the LIRL management and workers, when they agreed that the leave credits of the affected employees be converted to cash.

It was also resolved in the meeting that the employees’ “saved funds”—a provident fund drawn from the workers’ salaries—be placed under security bond, and that the affected workers be paid all the wages and benefits due them “when resumption of operations will no longer be possible.”

Present in the meeting were LIRL’s legal counsel Rex Tadena and human resources manager Jennire Torres, as well as eight representatives from the rank of employees (Henry Empeño , Business Mirror)

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Ex-Subic casino workers seek payment of back pay

With the recent closure by the Subic Bay Metropolitan Authority (SBMA) of several foreign-owned hotels and a casino here, former employees are clamoring for payment of back wages and benefits before the firm’s remaining assets are taken by its creditors.

Romeo Caoile, spokesperson for the displaced employees of Legend International Resorts Ltd. (LIRL), said the employees feared that nothing would be left to them after the creditors of the Hong Kong-registered company divide its assets to cover its debts.

“The same fate [awaits] the more than 200 employees left working at LIRL’s remaining establishments,” Caoile said.

Rehabilitation plan

In 2006, foreign investors and local non-financial creditors of LIRL, like the SBMA and the Philippine Amusement and Gaming Corp. (Pagcor), agreed to a corporate rehabilitation plan for the company that ultimately failed to restore its profitability.

Due to this, Caoile said the LIRL management decided to put regular employees on a rotation basis.

“One of the first things they did is to suspend our salaries and benefits, and then they employed us on a rotation basis. Then we were retrenched when we did not accept to work as casual employees because we had already been working there for years,” he said.

Most of LIRL’s 700 employees who lost their jobs in 2007 filed a case of illegal dismissal with the National Labor Relations Commission. “[We filed the case] to get what is rightfully ours, especially since we have lost our livelihood when they retrenched us,” Caoile said.

He said more than 200 employees lost their jobs in 2006 when Pagcor revoked LIRL’s gaming license when the firm failed to pay more than P1 billion it owed the government.

“I understand that the casino had debts to Pagcor, but the hotels still had plenty of customers,” he said.

On Friday, the SBMA shut down and barricaded LIRL’s establishments due to nonpayment of arrears.

Lawyer Robert Ongsiako, SBMA deputy administrator for legal affairs, said LIRL had over P200 million cash in bank, “excluding their movable and physical assets.”

However, Ongsiako said the SBMA cannot yet seize control of LIRL’s property. “That is another matter for the court to decide,” he said.

He said the SBMA was collecting more than P800 million from LIRL.

Efren Zubiri, the local representative of LIRL’s liquidators in Hong Kong, said the issue “should be discussed in the proper forum.” (Robert Gonzaga, Inquirer Central Luzon)

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