PASAR union, mgm’t hope to end wage deadlock as gov’t steps in

TACLOBAN — The Department of Labor and Employment (DoLE) central office has stepped in and assumed jurisdiction over the labor row at the Philippine Associated Smelting and Refining Corp. (PASAR), averting a strike at the only copper smelting and refining factory in the country.

Juanito B. Geonzon, regional director of the National Conciliation and Mediation Board (NCMB) for Eastern Visayas, said Labor Secretary Marianito D. Roque had issued an order assuming jurisdiction over a labor dispute between the management of PASAR and the Concerned Organization of PASAR Progressive Employees for Reform (Copper), noting a deadlock in mediation proceedings. “Negotiations began on March 19. The talks reached a deadlock after five meetings. The union and management have failed to reach an agreement on salary increase, signing bonus, retirement pay and housing allowance. This prompted the management to seek NCMB’s intervention,” Mr. Geonzon said.

“The cooling period has already matured and the workers’ union was supposed to stage a strike by June 17. But the union is still hopeful that their demands will be granted by the management,” Mr. Geonzon added.

The NCMB served the notice of jurisdiction on June 17, the day the workers’ union was supposed to hold their strike. The company’s refining facility is located at the Leyte Industrial Development Estate in Isabel, Leyte.

Mr. Geonzon clarified that the intervention of the DoLE is meant to preserve the status quo as the dispute is likely to cause a strike or lockout in an industry indispensable to the national economy such in the case of copper smelting.

“DoLE has scheduled the meeting on June 25. But before that meeting, the management and the workers’ union agreed to meet on June 23 along with NCMB. I observed that both parties want to settle the problem here … that is why they scheduled for final negotiations. The union even stalled their strike because they want a peaceful settlement of their dispute with management,” Mr. Geonzon added.

Meanwhile, Juanito P. Pontañeles, labor union president, said that until June 18, the union “was still hopeful” that the management would give in to their demands.

In their almost two months of negotiations, the union and PASAR failed to reach an agreement particularly on salary increase, signing bonus, retirement pay, and housing allowance.

“We are demanding for P45 salary increase this year and another P45 next year. It was already reduced from our original demand of P150.

The management is only willing to give P20. But an emissary from the management told us they will give P25,” Mr. Pontañeles said. On the signing bonus, the union is asking only for P20,000, down from P30,000. Management initially offered P13,500. The latest offer reached P14,000.

On monthly housing allowance, union members are demanding P1,500 per month whether the unit is being rented or owned. However, the management is willing to raise it only to P700 for renting and P800 for those owning. The union also wants a 175% increase in retirement pay, but management offered 105%, then raised it to 110%.

Workers believe that PASAR can afford to pay their demands considering its estimated P1.17-billion net income last year.

Meanwhile, Ed Escoto, PASAR’s community development relations officer, said that as of June 18, PASAR remained peaceful and “no strike or lockout has occurred.”

“Our operation is normal. In fact the Regional Minerals Development Council (RMDC) was here yesterday (Thursday) and conducted a plant visit. There was no rally at all,” Mr. Escoto told BusinessWorld. “We have a good labor and management relations for 10 years. Since it started operations in the late ’70s, PASAR only had six labor strikes and all have been addressed by the management. So, we are totally enjoying industrial peace,” Mr. Escoto added.

PASAR’s primary product is electrolytic copper cathode, consumed principally by wire and brass mills where cathodes are re-melted, poured and cast into wire rod, billets, cakes or ingots, generally as pure copper or alloyed with other metals. — Reyan L. Arinto, Businessworld