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Lepanto retrenchment violates MOA — KMU

BAGUIO CITY (Nov. 3) — The Kilusang Mayo Uno-Cordillera lambasted the move of the Lepanto Consolidated Mining Company (LCMC) to lay-off some 100 mineworkers. KMU-Cordillera regional spokesperson James Tulipa criticized the retrenchment plan as clear violation on the memorandum of agreement (MOA) signed between the union and the management of LCMC to end the 3-month long strike that started last June 2, 2005.

“This action of the LCMC is part of their retaliatory actions against the workers. It is stated in the MOA that there should be no retaliations on each side but it seems they are the ones who are not taking it seriously,” said Tulipa.

In a letter dated October 26 to the Department of Labor and Employment- Cordillera Administrative Region, LCMC Human Resource, Training and Administration Manager Atty. Crisanto Martinez said that the retrenchment of 100 employees will take effect on December 2, 2005. Martinez said the company is on re-organization and downsizing.

In contrast, separate letters issued to each of the affected workers, Martinez said that while the company registered a net income of P12.9 million in the ensuing year of 2004, they projected a “staggering loss” of P420 million for the current year of 2005 and another P330 million for their 2006 operations.

Meanwhile, Cristopher Bautista, the newly elected president of the 1,700-strong Lepanto Employees Union-NAFLU-KMU said that he is saddened by the acts of the company towards the union. He alleged that the retrenchment program was aimed to terminate the union members who actively participated in the strike to weaken the union. According to Bautista, the union will help the affected workers in filing legal charges against the company for illegal dismissal.

In a statement, the militant KMU-Cordillera said that the retrenchment is orchestrated and malicious steps of the company to bust the union. KMU pointed out that most of the affected workers are those active during the strike.

“The company is on its desperation again to break the unity of LEU-NAFLU-KMU so it can easily impose its oppressive prerogatives to the workers in struggling for their rights” the statement added.

KMU also said that the company disregarded the seniority factor in selecting the employees to be retrenched. From the list of the retrenched workers, many are due for retirement soon.

“The failure of the company to consider the seniority factor makes the selection process unfair and unreasonable since it violates the senior employees’ security of tenure. This is also in contrast to the Supreme Court ruling that seniority factor should be an important ingredient for the validity of a retrenchment,” KMU added.

KMU said that while the company is retrenching workers due to its alleged losses in 2003, it is also continuously hiring new workers. KMU again attacked the said retrenchment saying that if the company is true to its reorganization and downsizing, it should not prioritize the regular workers and instead considered its project and contractual employees numbering around 300. # Aldwin Quitasol and Leonida E. Tundagui/KMU-Cordillera

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