Manila Mining told to pay workers laid off in 2001

The Supreme Court has ordered listed Manila Mining Corp. to compensate employees who were terminated after the shutdown of mining operations in Butuan.

In a decision promulgated Sept. 29, the high court’s first division said that though Manila Mining cannot be accused of unfair labor practice after it terminated the employees in 2001 because of failure to acquire an environmental compliance certificate (ECC), the management still has an obligation to pay the laid-off workers.

The court ordered Manila Mining to pay the retrenched employees a half-month salary for every year of service, upholding an earlier decision by the Court of Appeals.

The case stemmed from the miner’s decision to shut down its operations in Butuan after failing to acquire an ECC for its tailing pond, a requisite for mining operations. The shutdown affected more than 400 employees under the Manila Mining Corp. Employees Association.

Following the shutdown in 2001, the workers’ group brought the case before a labor arbiter, claiming that Manila Mining violated labor laws such as giving a 30-day notice before the layoffs. The group also claimed that the company did not want to negotiate a collective bargaining agreement.

The labor arbiter sided with Manila Mining, but the workers won an appeal before the National Labor Relations Commission, resulting in a P469,050 separation package based on one month’s pay for every year of service.

Both parties appealed the decision to the appelate court, which opted to reduce the separation pay to half a month’s worth of salary for every year of service. –Businessworld