Labor dep’t averts strikes in Cebu-based power firm

MANILA, Philippines – The Department of Labor and Employment (DOLE) averted planned strikes by workers of the Korea Electric Power Corporation-Salcon Power Corporation (Kepco-SPC), which is based in Cebu, warding off fears of power outages in the islands.

Labor Secretary Rosalinda Baldoz presided an 11-hour conciliation-mediation between Kepco-SPC and its union Kepco Employees Association-Workers Solidarity Network on Friday, May 1.  

President Benigno Aquino III ordered Baldoz to look into – and find a solution – to the labor dispute in the company.

The 200-megawatt Kepco-SPC coal-fired plant supplies power to “almost all the Central Visayas grid covering the islands of Panay, Negros, Cebu, and Leyte,” the DOLE said.

The averted strikes “could have debilitating effects on the Central Visayas economy,” it added.

The dispute between management and workers of the power plant stemmed from the dismissal of Lowell Sanchez, president of the newly-formed Kepco Cebu Supervisors Association.

Kepco-SPC said the formation of the union violated company rules and regulations, while labor leaders accused Kepco-SPC of union busting. Threatening with strikes, the workers asked for Sanchez’s reinstatement.

Both the rank-and-file union Kepco Employees Association-Workers Solidarity Network and supervisory workers’ union Kepco Cebu Supervisors Association filed a notice of strike. 

Partido Manggagawa chair Rene Magtubo said “the meager wages of Kepco workers was the motive for them to unionize and bargain as a means of enhancing their working and living standards.”

Settlement agreement

“The repercussion of two labor strikes in a strategic industry like power is unimaginable,” said Baldoz, who commended Kepco-SPC and the workers for agreeing to a “win-win” solution to the labor dispute.

President Aquino was in Naga City, Cebu, on Labor Day at the time of the marathon conciliation proceedings, where he instructed Baldoz to be present. Kepco is based in Naga.

It was settled that the investigation against Sanchez on his alleged violation of company rules – which caused his dismissal – would be re-opened.

Both parties agreed to continually compensate Sanchez pending the probe results.

The management agreed to review its company rules and regulations, and the union can propose revisions within 60 days after the settlement agreement.

Kepco-SPC likewise committed to provide the rank-and-file employees a copy of the company’s rules and regulations.

Should the re-investigation committee decide in favor of Sanchez’ continued stay in the company, the union leader will receive compensation he was supposed to receive at the time of his preventive suspension. – Rappler.com