TUCP party-list backs workers in company overhauls

“An employment that has been zealously earned, industriously worked for, valued and treasured, should be secured. The protection should extend to remunerations and benefits, with all the enhancements, merited due to years of arduous service.”

This is the statement of Trade Union Congress Party-list Representative Raymond Democrito C. Mendoza after having filed House Bill No. 6696 which calls for the protection of employees in cases of merger or consolidation, sale or transfer of all or substantially all assets or businesses of their employers and other purposes.

Rep. Mendoza stressed the weight of the bill in this most pressing time of global economic crisis when “competition among businesses has become tremendously intense that the dictum bigger is better has obtained advocates worldwide including our country’s multinational companies.”

The solon noted that the demarcation line between workers rights and employers’ responsibility becomes “vague”.

Violated rights include security of tenure, diminution of wages and benefits and other employment terms and conditions.

HB 6696 seeks to oblige the acquiring or transferee employers to continue the employment of the transferor employer’s employees without loss of seniority rights and other privileges.

A merger, consolidation or transfer of business will not be allowed to cause decrease in wages, benefits and other employment terms and conditions of the affected employees.

The bill also limits the ground for termination of employment in case of redundancy. It presumes that there can be no declaration of redundancy because a transferee employer or the new company which is bigger can absorb the employees.

An employee declared to be redundant however should be granted the first opportunity for employment in a newly created position, if he or she possesses the minimum qualifications.

The bill further sets out rules on recognition of existing bargaining agents and agreements.