Labor dispute at San Miguel food unit resolved

MANILA, Philippines – The labor department has settled a 2-month labor dispute at San Miguel Foods, Inc.,with labor and management inking a new collective bargaining agreement (CBA).

Labor Secretary Rosalinda Dimapilis-Baldoz had assumed jurisdiction (AJ) over the case to prevent a strike, the department said in a press release.

“The alternative dispute resolution (ADR) mechanism like conciliation and mediation is a better option as it avoids litigious case proceedings and escalation of labor and management conflict,” Ms. Baldoz said in the press release.

Conciliator-mediator Leopoldo B. de Jesus facilitated the settlement of the dispute between the San Miguel Foods and the San Miguel Foods, Inc. Employees Union-PTGWO (SMFIEU-PTGWO).

“The use of conciliation and mediation in handling AJ cases is an innovative approach which the National Conciliation and Mediation Board (NCMB) has introduced to explore all options for settlement,” Ms. Baldoz said.

In a report, Mr. de Jesus said the 2 parties signed on Jan.17 a new 3-year CBA that ended the 2-month-long labor dispute.

The settlement of the dispute at San Miguel Foods came within 2 months after the NCMB settled disputes in 3 other San Miguel Corp. units:

* San Miguel Yamamura Packaging Corp.’s Manila Glass Plant on Sept. 17
* San Miguel Yamamura Packaging Corp.’s Manila Plastics Plant on Sept. 23
* SMC Yamamura-Fuso Molds Corp. on Nov. 5.

Ms. Baldoz said the CBA at San Miguel Foods will benefit 120 workers at SMFIEU-PTGWO.

The company is one of San Miguel’s food units. It has 1,400 poultry farms, 37 poultry processing plants, 22 hatcheries, 409 hog farms, 11 cattle and slaughter plants, and 11 feedmill plants.

The firm has joint ventures with US-based Hormel Foods Corp.

Management and the labor union agreed on a salary or wage increase of P1,200 a month for the first year, retroactive to July 1, 2010; followed by P1,300/month on the second year, effective July 1, 2011; and another P1,200/month on the third year, effective July 1, 2012.

There will also be a “Business Performance Bonus” (BPB).

Both sides also agreed to a one-time grant of P46,000. Those who became regular employees after July 1, 2010 but not later than Jan.17, 2011 will receive a pro-rated amount of the cash grant. Those who became regular after Jan. 17, 2011 are not entitled to the grant but will be entitled to wage increases.

The BPB, a new benefit for covered employees, will be given on the third year of the CBA. Rules will be finalized not later than Oct. 31.

The union was represented by its president, Jose Edwin E. Cruz, and other officers and members. San Miguel Foods was represented by Dante B. Mallari, chairman of the management negotiating panel, and lawyer Rolando Z. Claveria.

“All other provisions agreed upon by the parties at the plant-level negotiations shall be incorporated in the agreement, while all existing CBA provisions which were not altered, modified, or amended by the parties shall be maintained on status quo,” the Labor department said. –BusinessWorld