PHILIPPINES: Union issues in Visayan Electric Company (VECO) By Violeta P. Corral, PSIRU-Asia (October 2009)

Transcription

1 PHILIPPINES: Union issues in Visayan Electric Company (VECO) By Violeta P. Corral, PSIRU-Asia (October 2009) In May 2009, Visayan Electric Company Employees Union (VECEU) filed a strike notice against the VECO management at the National Conciliation and Mediation Board for unfair labor practice in implementing unilateral decisions without consulting the union, and the proliferation of labor-only contracting in which workers are performing work which would otherwise be the job of regular employees (e.g. billing and electric line posting, and maintenance), and thus resulting in the loss of union membership. VECO is the Philippines second largest private electric utility and is currently serving 291,962 customers in the cities of Cebu, Mandaue and Talisay and five municipalities of the greater part of Metro Cebu. The Aboitiz group took over the administration of VECO in 2004; a voluntary early retirement program was offered to the employees. More than 200 members of VECEU reportedly availed themselves of the program. Currently, VECEU membership is confined to administrative employees of VECO. Among the grounds stated in VECEU s notice of strike is the alleged refusal by management to bargain collectively and negotiate with the union to resolve the issues about violations of the collective bargaining agreement. The union also said that the management committed union busting when it suspended union members due to union activities and transferred the union president to an assignment far from the core of the union membership (which is in their main office in Banilad). The union also accused the management of committing gross violation of the economic provisions of the CBA: (1) Section 1, Article II which prohibits hiring of labor and job contractors VECO hired several labor only contractors which supply workers who are performing work of the regular employees which largely reduced the number of the union members; (2) Section 5, Rule V which grants the workers a total of only 40 work hours a week Management, in computing absences and overtime pay, used 25.6 days a month instead of 20 days; (3) Section I, Article X with regards to the granting of 4% of the company s profit as share of the workers VECO did not present to the union despite several demands on how the company s profit is determined and computed; (4) Section 7, Article XIV with regards to electricity privileges VECO changed the existing practice which did not limit the use of the electricity and now puts a limit to the electricity consumption privilege earlier granted to its employees. 1

2 ANNEX A Relevant Newsclips (November 2008 August 2009) VECO set to hand out meter deposit refund (The Freeman) November 05, CEBU - Following the move of the Manila Electric Company (Meralco) in Metro Manila, Cebu s Visayan Electric Company (VECO) is also refunding the meter deposits of more than 22,000 customers. The refund will be reflected in the November bill. This will not however cover all consumers, but only those who have been customers before The utility firm has set aside a total of P61 million for this refund. VECO spokesperson Ethel Natera said that the amount that would be refunded would depend on how much each customer paid when he or she applied for a connection. Dili na siya fixed (refund). It varies gyud, Natera said. VECO said that in 2004, they have stopped collecting meter deposits from service applicants with the implementation of the Magna Carta for Residential Customers. Prior to this magna carta, all distribution utilities in the country were allowed to collect meter deposits. VECO s refund is in compliance of the Energy Regulatory Commission Resolution no. 8 series of 2008 issued last June 4. VECO said that while distribution companies were given five years or 60 months to implement the said order, they are implementing it in just one month. VECO added that any person or entity who is the registered customer of VECO, his or her heirs, successors-in-interest or authorized representatives and has previously paid the meter deposit as required by VECO, is entitled to collect the refund. VECO further stated that those who failed to apply on or October 15 will automatically have their refund either as credit to their November 2008 bill or against outstanding liability. VECO had started accepting applications for the refund last August 2008 wherein customers were given the option to get the refund in cash check or a credit to future monthly billings. Mitchelle L. Palaubsanon/NLQ (THE FREEMAN) City, VECO sign MOA for power in SRP (The Freeman) March 28, CEBU, Philippines - The Cebu City government and the Visayan Electric Company yesterday signed a memorandum of agreement for electricity in the 300-hectare South Road Properties. The signatories were Mayor Tomas Osmeña on behalf of the city while VECO was represented by its president Dennis Garcia, the signing was witnessed by key officials of both parties. Osmeña said that VECO will supply electricity to the entire facility as well as fill in the demands of the locators. The city will collect an access fee of 20 centavos for every kilowatt hour and charge a collection not higher than the usual rate outside SRP. The mayor said that VECO was chosen as the power provider of the 300-hectare facility because it falls under its franchise area. VECO holds a legislative franchise to construct, operate and maintain a distribution system for the conveyance of electric power to the end users in the cities of Cebu, Mandaue, Talisay and Naga as well as the municipalities of Minglanilla, San Fernando, Consolacion and Liloan. VECO will arrange for the design, engineering supply and construction of an electric power distribution system in the SRP. The city will require each locator in the SRP to execute an agreement to purchase electricity from VECO at a rate to be authorized by the Energy Regulatory Commission. For now the city cannot estimate the expected power demand in the SRP as more locators have yet to come in. So far, only Bigfoot Global Solutions Inc. and Filinvest Land Inc. are the locators. 2

3 Bigfoot started its project in the area in the middle of 2007 and has paid the P25 million for its 25-year lease payment for a two-hectare lot for its expansion studio. Just recently, FLI and the city closed a P25- billion sale over a hectare area for office and high-end residential spaces. For water, a Joint Venture Selection Committee will already go over the proposal of Pilipinas Water Resource Inc. Ferliza C. Contratista/BRP (THE FREEMAN) VECO employees union filing case vs management (The Freeman) May 03, 2009 CEBU, Philippines Following a rally last Labor Day, the Visayan Electric Company Employees Union is set to file on Wednesday a case for alleged unfair labor practice against the VECO management before the National Conciliation and Mediation Board. VECEU President Casmero Maghilom said the case is intended to protect the security of the economic provision under our CBA. Maghilom alleged that even before their CBA with management will expire on December, the VECO administration allegedly has started implementing unilateral decisions without consulting the union. VECEU also questioned the alleged proliferation of labor-only contracting wherein workers are performing works, which would otherwise be the job of regular employees. Membership of VECEU reportedly was reduced tremendously when VECO started hiring workers of labor-only contractors to handle field work requirements like billing and electric line posting, and maintenance. Currently, VECEU membership is confined to administrative employees of VECO. Article 253-A, which stipulates the terms of the CBA, states, any collective bargaining agreement that the parties may enter into shall, insofar as the representation aspect is concerned, be for a term of five years. It likewise said, No petition questioning the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted by the Department of Labor and Employment outside of the sixtyday period immediately before the date of expiry of such five year term of the collective bargaining agreement. The article further states that all other provisions of the collective bargaining agreement shall be renegotiated not later than three years after its execution and any agreement on such other provisions of the CBA entered into within six months from the date of expiry of the term of such other provisions as fixed in the CBA shall retroact to the day immediately following such date. Finally, the article states, If any such agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the renegotiation of the collective bargaining agreement, the parties may exercise their rights under this Code. Maghilom said last Friday s rally was only the beginning of a series of protest actions against the VECO management. Union members would reportedly start to wear black arm bands starting this week in support of the protest. The Aboitiz group took over the administration of VECO in 2004 when a voluntary early retirement program was offered to the employees. More than 200 members of VECEU reportedly availed themselves of the program. Maghilom said they are open to proposals to amend the CBA but not until it expires this year. We sent too many letters, but Aboitiz never cared to answer all our queries, Maghilom said. He said they already channeled their concerns to DOLE Secretary Marianito Roque. Johanna T. Natavio/JMO (THE FREEMAN) VECO union files strike notice before NCMB (The Freeman) May 19,

4 CEBU, Philippines Aggrieved union officials and members of the Visayan Electric Company Employers Union-Associated Labor Union-Trade Union Congress of the Philippines yesterday filed a notice of strike against the management of the said power firm before the National Conciliation and Mediation Board. The notice of strike filed by union president Casmero Mahilum contended that several requests were already made by the union in order to resolve their ongoing labor dispute at the plant level. But he said their efforts were rejected by the management of VECO which prompted them to file the notice of strike. VECO is the country s second largest private electric utility and is currently serving 291,962 customers in the cities of Cebu, Mandaue and Talisay and five municipalities of the greater part of Metro Cebu. Among the grounds stated in their notice of strike is the alleged refusal of the management to bargain collectively and negotiate with the union in order to resolve the issues involving violations of the collective bargaining agreement. The union also said that the management committed union busting when they suspended union members by reason of union activities and transferred the union president to an assignment far from the core of the union membership which is in their main office in Banilad. The union also accused the management of committing gross violation of the economic provisions of the CBA wherein they cited four provisions in the CBA violated by the latter. The first was Section 1, Article II which prohibits hiring of labor and job contractors. VECO hired several labor only contractors which supply workers who are performing works of the regular employees which largely reduced the number of the union members, the notice of strike read. Another violation cited is Section 5, Rule V which grants the workers a total of only 40 work hours a week. The union said that the management, in computing absences and overtime pay, instead used 25.6 days a month instead of 20 days. The union also cited another violation in Section I, Article X with regards to the granting of four percent of the company s profit as share of the workers. VECO did not present to the union despite several demands on how the company s profit is determined and computed, the notice of strike added. Furthermore, the union accused the management of violating Section 7, Article XIV with regards to electricity privileges. The union said that VECO changed the existing practice which did not limit the use of the electricity and VECO now puts a limit to the electricity consumption privilege earlier granted to its employees. The FREEMAN tried to ask VECO spokesman Basti Lacson for comments but said he will only comment today once he gets the official copy of the notice of strike. Mitchelle L. Palaubsanon/BRP (THE FREEMAN) Union fears more power cuts Cebu Daily News (Philippines), 08/03/ Visayan Electric Company Employees Union (Veceu) fears that the management will intensify the cutting of electric privileges among union members. Cas Mahilum, president of Veceu, said that they would be expecting 15 employees to lose their electricity today. Veco had already cut the electricity of 30 employees, the latest was last Friday. Mahilum said no electricity was cut since Friday because the magna carta for residential customers stated that there would be no cutting of electricity from 3 p.m. Friday until Sunday. The company is currently implementing their new guidelines for the new electric privileges of employees under the miscellaneous provisions of the collective bargaining agreement between the management and the union. The company is now limiting the electric privileges. Mahilum said that there are more than a hundred employees who exceeded the limitation of kilowatt per hour implemented by the company. He said that those single rank and file only have 400 kwph free while those married is limited to 650 kwph.. Mahilum said that the Veceu would hold a March rally on Tuesday, which is two days before they would officially hold a strike against Veco. Veco management in an earlier statement assured that if a strike happens, the electric service to all areas of its franchise would continue uninterrupted. Both management 4

5 and union however earlier agreed to hold another round of negotiations with the National Conciliation and Mediation Board before workers would decide to go on strike. /Correspondent Carine M. Asutilla 5