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Strike paralyzes Lepanto

LCMCo blocks support

MANKAYAN, Benguet (June 3) — The 1,687-strong Lepanto Employees Union (LEU) went on strike on June 2 versus company management due to a deadlock in the Collective Bargaining Agreement (CBA) negotiations, totally paralyzing underground operations. The same union went on strike in 2003, claiming most of their demands, including the reinstatement of retrenched union officers.

The workers are calling for a P29-P29-P33 wage increase, while management is only offering P21-P26-P28. The CBA will cover years 2005 to 2008. Other items in the workers’ demands include housing allowance, rest leave, and separation pay. The LCMCo is the lone-gold producer in the country.

Meanwhile, some 85 elements of the 54th Infantry Battalion (IB), combined with integrees from the Cordillera People’s Liberation Army (CPLA), and the Civilian Armed Force Geographic Unit (CAFGU) were deployed here a day after Labor Secretary Patricia Sto. Tomas issued an Assumption of Jurisdiction (AJ) order on May 10.

This, however, did not discourage the strike-bound workers.

Article 263 of the Labor Code provides for the AJ order, which states that its issuance will compel striking workers to return to work or to stop any impending strike. The pursuance of any strike, despite the order, would automatically make it illegal and paves the way for the termination of union leaders. Historically, a union’s concerted efforts may be used to win their demands, despite the “defiance” of an AJ.

However, Lepanto Consolidated Mining Company (LCMCo) Resident Manager Augusto Villaluna said that the military deployment has nothing to do with the then impending strike, adding that such was due to “NPA sightings” in the Lepanto area, which encompasses the villages of Sapid and Cabitin. Mankayan lies within the boundary of Ilocos Sur and Mt. Province.

Lepanto women and children earlier staged a march-rally to support the workers’ demands (see related story).

Picketlines started mounting at 5:30 a.m. on June 2 in Nayak, Tubo, Buaki, Level 900, and Mill Site.

Chronology of events

Ground rules for the CBA negotiations started as early as November last year. The first bout took place on February 18, 2005, until a deadlock on April 2. Here, the management offered a P3,000 lump sum for the 1st year, P13 for the 2nd year, and P15 for the 3rd year. The LEU then pushed for an P85-P85-P85 wage hike.

LEU filed a Notice of Strike (NOS) with the National Conciliation and Mediation Board (NCMB) on April 5, which the union membership supported. Two more conciliation meetings took place from April 5 to April 16, until LEU had its Strike Vote Referendum (SVR) on April 20.

On May 10, the Department of Labor and Employment (DoLE) issued the AJ, citing that a strike would cripple the mining operations and eventually, the enhancement of the nation’s economic growth since “mining activities are indispensable to the national interest”.

Villaluna said that LCMCo lost around P142 million in the 2003 strike.

LEU received its copy of the AJ order on May 11.

“Just and legitimate” demands

Miners receive a basic pay of P340 a day, and P260 in benefits, or P610 daily. This is however devalued with the increase in prices of basic goods and services, said LEU President Ninian Lang-agan, adding that the P29-P29-P33 wage increase and the benefits demanded by their union are but “just and legitimate”.

The increase in wages will be added to the basic pay, accumulatively, as follows:

The proposed increase (P29, P29, and P33, respectively) is multiplied by the number of workdays per month (26). The product is multiplied by the number of months (36, 24, and 12, respectively) then multiplied by the total number of workers (1,687). The product would be P93, 689,232, representing the sum total of the projected workers’ wages from 2005 to 2008, should LCMCo grant the union’s demands.

Substituting the company’s proposed increase (P21-P26-P28) would result to 75,267,192 for the three years. The difference would be P18,422,040, which is “savings” for the company, the LEU claimed.

In a statement, LEU said that management would always reason that it is not earning, that is why it could not afford to accept the union’s proposal.

“Kinaagpayso na, gapu iti kinagaget tayo, nginmato iti 24% ti gross revenue ti kompanya. Nu kitaen tayo, nakaganansya daytoy ti P2.4 billion idi 2003, ken P2.7 billion retained earnings idi 2004”, (The truth is that due to our diligence, LCMCo’s gross revenue increased by 24%. Its 2003 profit reached 2.4 billion, while its retained earnings for 2004 amounted to P2.7 billion) the LEU claimed in their statement.

Villaluna said that the company is still paying its loans, such as the fund needed to operate the Victoria Gold, which amounts to some $30 million.

LEU Auditor Ronald Maslian said that the company has processed expansion applications in Benguet (Mankayan, Kabayan, Suyo, Atok, Kapangan) and Nueva Vizcaya (Kayapa, Bambang) since January 2005.

“Dayta itamtambakda para expansion ket ling-et ti mangmangged. Kitaen da kuma umuna ti sitwasyon ditoy sakbay dagita, ta maawatan mi met ti businessman” (Lepanto’s expansion is only made possible because of the workers efforts and sacrifices. We hope that the company sees to the workers’ plight first before venturing into business), he said.

Administrative Services Manager Atty. Weldy Manlong said that the LCMCo is willing to increase the wages as long as the company can afford it.

“Kung below kayo (workers), you need not ask. We will give it to you as long as we can afford it”, Villaluna said.

Under benefits, the union is asking that the housing allowance be increased from P200 to P320, for those workers the company cannot accommodate in the bunkhouses. House rent off camp ranges from P500 to P800 per month. The union also asks that rest leave be granted to surface or above ground workers. Lastly, LEU is pushing for “strict computation” in the separation pay, such that 35 days per year of service be multiplied by the rate per day. Standing separation pay computations qualifies that 30 days per year of service be computed for those who have worked with LCMCo for 15 years and below, and 35 days for those who worked for 15 years or more.

As of June 3 in the afternoon, LCMCo is proposing a P21-P27-P29 wage hike, 12 years as qualifier in the separation pay, no housing allowance, and selective rest leave. The union did not accept the offer. The company also banned the entry of rice into the picketlines which nearby communities pooled in support of the strike.

“Inggana agballigi”

While briefing fellow workers at the Tubo gate on June 2, Lang-agan stressed the need to uphold their unity until all demands are heeded. He also commended the women and children of Lepanto for their support.

“Inrugi dagiti babbaket ken ubbing ti laban. Inrugi tayo metten, isunga aramiden tayo ken itultuloy daytoy ta adda ti basaran daytoy wages. No saan tayo a maala daytoy itatta, datayonto ti marigatan”, (Women and children have started the fight. And since we have started it, let us sustain it because we have enough basis to ask for increases. If we fail now, we will suffer later) he said.

In its statement, LEU said that the CBA is the union’s lifeline, where a worker’s benefits, wages, and working conditions are ensured.

“Daytoy ti esensya ti pannaka-adda ti unyon tayo, ti panagpursige ti pagsay-atan dagiti mangmangged”, (This is the essence of unionism, to ensure the welfare of its members), it read.

During the Lepanto women’s march-rally on May 31, the company distributed notices warning the workers of retrenchment if they joined the strike. The workers, however, signed a unity statement, affirming their support until all their proposals are accepted.

As of June 4, management had all patients discharged from the company hospital, until the strike is over.# Abigail Taguba Bengwayan for NORDIS

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