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Lepanto loses P360M in strike

MANKAYAN, Benguet (July 29) — Lepanto Consolidated Mining Company (LCMCo) claims it has lost over P360 million with the two-month strike.

Still the country’s biggest gold producer, Lepanto is in a grind for higher pay demands by its workforce represented by the Lepanto Employees Union (LEU). LCMC area Vice Resident Manager Ernesto Laoagan said the strike has virtually crippled their underground operations. They consider it the biggest strike ever in Lepanto’s 68 years existence.

Laoagan explains that the gross output for a month of normal underground operations by the mine firm reaches a high of P80 million and a low of P60 million.

The strike started on June 2 after the LEU filed a notice of strike when the Collective Bargaining Agreement bogged down.

The LEU has since defied two orders by the labor department ­ first the assumption of jurisdiction and second, the return to work order.

LEU officials have included in their demands the reinstatement of all dismissed union officers and members. Laoagan said, however, that it is non-negotiable.

“Other members of the LEU might be reconsidered while their records will be re-evaluated but the union leaders is a no-no,” expalined Laoagan.

As for the LEU, the reinstatement is likewise non-negotiable.

Low output

Laoagan disclosed that during the first month of the strike, underground mine operations only produced 800 ounces of gold. The firm targets to bring 2,000 tons this July, but lamentably, it cannot.

Financial difficulties have been plaguing the company as production dived to 33% this year, company records showed. Notes and loans payable also rose to 77.5%.

Lepanto lawyer Weldy Manlong said that the company continues to loose P6 million a day because of the strike.

LEU Spokesperson and Auditor Ronald Maslian claims that the union’s demands “are reasonable and well founded”, citing research done by members on the financial standing of the company.

The LEU has asked for a wage increase of P29-P29-P33 in its Collective Bargaining Agreement (CBA).

The strikers are also demanding for an increase in housing allowances, rest leaves per month and retrenchment pay.

Losses from previous years by Lepanto, officials said, have not been gained thus meriting the company’s non-compliance to LEU’s demands. The lack of foreign investors to infuse fresh investments to fuel exploration projects were cited as main reasons in their fiscal dilemma.

“Defied Orders”

On June 15, the labor department ordered both parties to conclude a CBA that stipulated a P25-27-29 wage increase for a three year period, the grant of a housing allowance of P200 a month, a retention of existing provisions on rest leaves and an increase in the rates in retrenchment pay.

The LEU has refused to accept the agreement saying that unless the management reverses its decision on “dismissing” 19 officers of the union and 143 strikers, they will continue with their strike. # Ace Allegre for NORDIS

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