NEWS RELEASE

JANUARY 13, 2003

 

NCMB SETTLES PICOP LABOR DISPUTE

 

NCMB Exec. Director Rolando Rico Olalia announced today the settlement of the labor dispute at PICOP Resources, Inc. located at Tabon, Bislig City, CARAGA.

 

Olalia said that as a result of the settlement, covered employees stand to receive three sacks of rice upon signing of the settlement agreement, 2 sacks of rice at the end of the succeeding months until arrears and rice subsidy shall have been complied with, and the fifty percent balance of the 13^th month pay for 2001 120 days after signing of the MOA.

 

The MOA also provided for the reinstatement of eight union officers, a guarantee from both parties that there would be no labor disturbances in the next three years, the faithful compliance of the terms and conditions of the MOA and the withdrawal of the case pending at the NLRC, Olalia added.

 

Olalia clarified that the settlement agreement was in connection with the notice of strike filed by the union on November 21, 2002 alleging bargaining deadlock and the following ULP issues: reinstatement of nine union officers, non-payment of rice subsidy equivalent to 12 sacks of rice, non-payment of the 50% balance of the 13^th month pay for 2001, non-payment of unused and accrued sick leave credits for years 2000, 2001 and 2002, non-payment of attendance bonus for years 2000, 2001 and 2002, loyalty award and full payment of 464 retrenched workers, including optional and compulsory retirees.

 

Olalia explained that the dispute came as a result of the crisis the company went through in the most recent months.

 

He said that in October 2001, the company shut down its paper mills operations, wood supply and forest timber operations, administrative services and mill and general services units to avoid further losses as a result of the erosion of its competitive advantage due to the influx of cheap imported products.

 

This was aggravated by the uncertainty over the company’s forest tenurial rights and the impending expiration of its timber licensing agreement, Olalia further said.  He said that the simultaneous shutdowns of the four operating units affected 2,055 workers.

 

On May 10, 2002,  Olalia disclosed that the company further closed down its lumber operations due to the unavailability of  log input intended for sawmill operations, and as a result of the delay in the conversion of TLA 43 which expired on April 26, 2002 into an IFMA. The closure affected 42 workers.

            In February 2002, the company decided to recall 1,591 out of the 2,055 workers on a staggered basis, leaving the fate of 464 workers uncertain. These 464 workers were formally retrenched on May 1, 2002.

 

            A series of conciliation conferences conducted by NCMB CARAGA Director Dick Yosores led to the conclusion of the settlement agreement, Olalia said.

 

            Olalia said that the underlying consideration of the parties in amicably settling their differences is the realization that in times of business difficulties, they should share the sacrifices and carry the burden of the crisis together. He said that the union recognized that any concerted action would only aggravate the problems besetting the company and on this score, the union offered to cooperate with the company.  The company on the other hand accepted with gratitude the union’s offer of cooperation, Olalia added.