Showing posts with label Paul Yu. Show all posts
Showing posts with label Paul Yu. Show all posts

Wednesday, December 30, 2009

Workers in 2009: Refusing to Pay the Price of a Crisis Not of Their Own Making

December 30, 2009
The Situation and Struggle of Workers in 2009


The global economic crisis has brought the Philippine economy to the brink of recession. At the onset of the global crisis late last year, the government of Gloria Arroyo initially took the stance that the local economy will be insulated. But despite being in denial and whistling in the dark, the signs are clear of an economy teetering in recession.

There are historic declines in manufacturing and trade. The seasonally adjusted agriculture, fishery and forestry sector contracted by 1.0 percent in the first quarter of 2009 after expanding by 0.9 per cent in the last quarter of 2008. Industry registered its lowest growth for the last twenty years as it sank by 6.6 percent from a 0.1 percent gain in the last quarter.

Even the services sector posted no growth for the first quarter of 2009 compared to 0.2 percent recorded the previous quarter. Investments in fixed capital formation in the first quarter of 2009 plunged to negative 5.7 percent from a growth of 3.0 percent in the same period last year. Investments in durable equipment dropped to negative 17.9 percent from a growth of 9.6 percent a year ago. Total exports dived deeper to negative 18.2 percent from negative 7.7 percent last year. Total imports valued at P530.9 billion pesos at current prices exceeded total exports valued at P528.6 billion pesos, resulting in a trade deficit of P2.3 billion pesos.

The global economic crisis and the slowdown in the local economy had a grave impact on the lives and livelihood of workers in the Philippines. Job losses, mainly in the export sector of the economy, are worsening the unemployment and underemployment rate.

The adult unemployment is more than 20%, the highest since 2005, according to the Social Weather Station survey last June. Some 40,000 workers were laid off since October last year according to the conservative data of the DOLE. At least 120,000 workers affected by layoffs, job-rotation and wage cuts according to the DOLE.

Big multinational firms based in the Philippines have shutdown in the space of one year. The prestigious Intel plant in Cavite closed in December 2008. The German-owned undergarments firms Triumph and Star Performance in Taguig closed this August, laying off 1,600 workers. The Canadian-owned electronics factory Celestica in Cebu also shutdown in August, displacing 900 workers. Meanwhile in September a Taiwanese-owned conglomerate of garments firms called Sports City that produces for world-famous brands Adidas and Reebok retrenched 1,000 workers in Cebu.

Employers are passing the burden of the crisis on the backs of the workers. Capitalists are using the global crisis as an excuse to demolish workers rights and undercut labor standards. Several high profile cases highlight the trend.

Up to 400 retrenched workers of Maitland-Smith Cebu, Inc. have filed cases of illegal retrenchment. Some 1,700 workers produce high-end home furniture and accessories in the Mactan Economic Zone in Lapu-Lapu, Cebu. Its mother company is Maitland-Smith, headquartered in High Point, North Carolina.

Over 200 laid off workers of Lear Automotive have filed cases. Located also in the Mactan Economic Zone, it is an American company that exports electronics parts for cars. The remaining 11,000 workers suffer from reduced workdays.

Some 15 retrenched workers have filed cases against Taiyo Yuden Philippines Inc. It is a Japanese subsidiary that produces spare parts for cellular phones in the Mactan Economic Zone. The remaining 8,000 workers are on reduced workdays.

The workers are refusing to pay the price of a crisis that is not of their own making. Labor unrest is brewing as capitalists attack jobs, wages and working conditions. Although the revival in workers struggle is uneven, the return to militant struggle is taking shape. At the forefront of the new struggles are the workers of Metro Cebu.

The first workers strike against mass layoffs erupted last February in a furniture export firm in Mandaue, an industrial town in Metro Cebu. Hundreds of workers of Giardini del Sole went on strike for two days and paralyzed operations of the company by physically preventing the passage of personnel and goods. Even though illegal, the government vacillated in enforcing the law because of worker militancy and public support.

In April the first ever rally was held inside the Mactan Economic Zone in its decades-long existence. Around 70 workers of Sauna World Inc., a Finnish-owned firm producing sauna and spa heaters for export, marched from their factory to the gates of the export zone.

Last June the first picket line was setup on the gates of the Mactan Economic Zone by the workers of Paul Yu Industrial Corp., one of the biggest factories in the zone that produces lamp shades for export. More than 300 workers went on a month-long work stoppage in protest at the suspension of seven leaders of their workers association. The bitter labor dispute marked the definitive end of the era of the zone as a haven for docile labor where employers can ride roughshod over workers rights and labor standards without provoking a militant response from the workers.

By September of this year the labor unrest had transformed into a revival of unionism at the Mactan Economic Zone. The export zone was so repressive that even the moderate TUCP was complaining against its no-union policy. The workers of Altamode Inc., which makes clothes for the American firm Abercrombie & Fitch, successfully formed a union though they lost the certification elections due to management interference in the workers’ exercise of the freedom to organize and the DOLE’s indifference to the unfair labor practice of the company. Yet unlike previous attempts at failed union building which always ended in the termination of union officers and members, in this case the unionists were able to regain work and thus the struggle continues.

Wednesday, November 18, 2009

International labor advocates slam sweatshop labor in the Philippines

Press Release
November 18, 2009


Two international labor rights groups slammed the exploitation of sweatshop labor around the world including the Philippines. The International Labor Rights Forum (ILRF) released a report yesterday that listed two big American companies in its “Sweatshop Hall of Shame 2010” for using subcontractors based in the Mactan Economic Zone (MEZ) in Lapu-Lapu City that violate fundamental labor rights and standards. Meanwhile the Clean Clothes Campaign (CCC) celebrated its 20th anniversary by launching a book that chronicles the rise of the anti-sweatshop movement. The CCC has recently worked with the Partido ng Manggagawa (PM) in defending workers in several factories in the MEZ that produce for famous companies like Adidas and Abercrombie and Fitch.

Renato Magtubo, PM chairperson, said “We welcome the critical report of the ILRF and the excellent work of the CCC in support of the struggle of workers in the Philippines and around the world. If only our own Department of Labor and Employment was as vigilant as the ILRF and CCC then there would be less workers suffering from poverty wages and dire working conditions.”

The ILRF is a Washington DC-based advocacy organization dedicated to achieving just and humane treatment for workers worldwide. The ILRF’s Hall of Shame inductees are companies that “are responsible for evading fair labor standards and often are slow to respond or provide no response at all to any attempts by the ILRF and workers to improve working conditions.”

ILRF called on American shoppers to “take the time to ask about labor standards at the factories that produce Abercrombie and Fitch and Hollister clothing.” The demand stemmed from the labor dispute at Alta Mode Inc., an Abercrombie and Fitch contractor, where the union is accusing management of unfair labor practice and interference in the right to organize. The ILRF report states that “Workers have struggled for a union as an antidote to a production quota set beyond human capacity.”

Meanwhile the CCC has national campaigns in 12 European countries with a network of 250 organisations worldwide. The CCC inspired book titled "Clean Clothes" by Dutch writer and photographer Liesbeth Sluiter recounts that “all along the garment industry’s supply chains, workers, including children, are exploited through poverty wages, unpaid overtime and harsh anti-union measures.”

According to the ILRF report, at the Paul Yu factory, a supplier of the US home furnishings retailer Pier 1 Imports, employees were unjustly suspended for forming a workers association and protesting against rampant contractualization. ILRF revealed that it communicated with Pier 1 Imports but the company refused to take any meaningful action. The report relates that “The workers of Paul Yu are a testament to how companies like Pier 1 Imports continuously fail to meet their own corporate social responsibility commitment.”

The copy of the ILRF report can be accessed at http://www.laborrights.org/sites/default/files/publications-and-resources/sweatshop_hall_shame_2010.pdf. Details of the CCC anniversary commemoration and book launching can be confirmed via wyger@cleanclothes.org. Below is a copy of the CCC press release.

Anti-sweatshop 'Clean Clothes Campaign' Marks 20 Years
New Book Charts Growth of Global Movement


Nov. 16, 2009 - The worldwide anti-sweatshop Clean Clothes Campaign marks 20 years this month, and coinciding with the anniversary a new book on the movement will be launched on November 18. "Clean Clothes" by Dutch writer and photographer Liesbeth Sluiter takes an independent look at how the campaign has grown from an ad-hoc feminist coalition in Holland to an international labour-rights activist network that put corporate accountability on the fashion industry's agenda.

The campaign, one of the most prominent anti-sweatshop organizations today, aims to improve the wages and conditions of workers in the global garment industry. Large retailers such as Tesco, Walmart and Carrefour lure shoppers in with prices that seem too good to be true. This book shows that they’re too good to be fair.

All along the industry’s supply chains, workers, including children, are exploited through poverty wages, unpaid overtime and harsh anti-union measures. The campaign urges those in charge of the garment industry’s supply lines to protect their workers and treat them fairly.

This dynamic account of direct engagement by concerned consumers is a must read for those that see globalisation differently and want their shopping choices to support the most vulnerable people involved in the clothing industry.

Liesbeth Sluiter is a Dutch freelance photographer and journalist, who has worked for over 25 years with a passionate focus on environment, gender and global development issues. She is the author of The Mekong Currency (1993), published in the UK, the Netherlands, and Japan, and has written numerous articles on development and environmental issues.

The CCC has national campaigns in 12 European countries with a network of 250 organisations worldwide, including development organisations, trade unions, women's organisations, human-rights defenders. In the Philippines the Partido ng Manggagawa works together with the CCC to defend labor rights and welfare in the export zones.

Wednesday, July 15, 2009

Paul Yu workers claim partial victory in the agreement to end month-long dispute

Press Release
July 15, 2009


Four weeks of work stoppage over the suspension of seven leaders of the Paul Yu Workers Association ended last week with the workers accepting management’s offer of separation. In the agreement, 114 regular and contractual workers and 120 agency workers will receive 18 days per year of service in separation pay and a lump sum of P50,000 for a livelihood project of the association. The settlement is above management’s so-called final offer of 13 days only for regular and contractual workers and none for agency workers.

“This is only a partial victory but a victory nonetheless. We were not able to achieve the demand for reinstatement of suspended workers but the settlement will benefit all Paul Yu workers who participated in the protests including agency workers that management since the start was refusing to include in the terms of agreement. And due to the protests, the rest of the Paul Yu employees are now working five days a week instead of three, which was the main grievance of the workers,” explained Willy Dondoyano, president of the Paul Yu workers association.

The Partido ng Manggagawa (PM) emphasized the fact that the Paul Yu struggle was a breakthrough in the workers movement in the Mactan Export Processing Zone (MEPZ). “This is the definitive end of the era of the MEPZ as a haven for docile labor where capitalists can ride roughshod over workers rights and labor standards without provoking a militant response from the workers. Already we know of at least two factories who sent feelers to their workers who were in the process of organizing that management was willing to meet labor’s demands as long as they do not go the way of Paul Yu. The struggle and sacrifice of the Paul Yu workers will ultimately benefit all the export zone workers,” stated Dennis Derige, spokesperson of PM-Cebu.

Dondoyano added, “A whole month without work and pay took its toll on the workers and their families. Though the workers would have wanted to continue the fight for the maximum demand of lifting of suspensions, we were forced to accept management’s offer of separation so we could have the means to start again. In fact no worker returned to work despite the pressure but some were obliged to look for new work instead of manning the picketlines.”

PM slammed DOLE and PEZA officials for dragging their feet in the case thus weakening the workers negotiating position. “Labor department and export zone officials turned a blind eye to the illegal suspensions and labor standards violations. Even the small victory in the workers claims on unpaid benefits was not enforced by labor officials pending the results of the negotiations on management’s offer of separation,” argued Derige.

Dondoyano thanked the people who supported the struggle. “The support and solidarity of fellow workers inside and outside the MEPZ, labor groups abroad and even media workers who gave a sympathetic coverage of the labor dispute are a crucial factor in sustaining the fight,” he elaborated. In the month-long strike, the Washington DC-based International Labor Rights Forum, Clean Clothes Campaign of Europe, the United Electrical, Radio and Machine Workers of America and the San Francisco Labor Council were among those who sent letters of protests aside from more than a thousand unionists from more than 50 countries who signed the online appeal.

Wednesday, July 8, 2009

Another Update on Paul Yu Workers Struggle

July 8, 2009

A shipment meant for delivery to Pier 1 and Conforama, Paul Yu's major customers, consisting of 4 container vans worth P16 million (approximately US$320,000) has left the factory after having been put on hold for several days. The workers still do not any information why the shipment was temporarily put on hold but now released.

No auditors or inspectors have been to the factory from either Pier 1 or Conforama despite the information provided the companies regarding workers complaints of labor rights violations and infractions as per their vendor codes of conduct.

In a small victory, the hearing being conducted at the Labor Department on workers money claims for 13th month pay, paternity leave, service incentive leave (equivalent to sick leave/vacation leave) is about to end with management agreeing to pay the workers 3 years back in unpaid benefits. The only item left unsettled is the agency workers claims for wage differential (they were paid below the wage minimum until recently) for the last 3 years (the legal limit to claim unpaid benefits).

The issue of reduction of workdays and suspension of workers were referred or remanded to the National Conciliation and Mediation Board and the National Labor Relations Commission. Nothing happening yet on that front.

Thursday, July 2, 2009

Export zone workers resume picket at MEPZ II gate

Press Release
July 2, 2009


Around 200 workers of Paul Yu, a Taiwanese-owned lamp shade factory, resumed their daily picket-protest outside the gates of the Mactan Export Processing Zone II in Lapu-Lapu City after more than a week of “fruitless negotiations” with management. “Tuloy ang laban! We are here to inform workers in the export zone that the fight continues. We are here to seek support from fellow Cebuanos,” stated Willy Dondoyano, head of the Paul Yu Workers Association (PYWA).

The moving picket started yesterday then resumed today at around 8:30 a.m. and will continue till the afternoon. Yesterday security guards at the export zone tried to cajole the picketers to disperse but the workers stood their ground and no untoward incident transpired as the peaceful protest continued.

Dondoyano explained that “In the face of management’s intransigence, we continue to demand that all workers be allowed to work without any retaliation from management. The suspension on the seven leaders and more than 300 workers must be lifted. We refuse management’s offer that we be retrenched and paid a separation rate of P3,000 per year of service. Such an offer is in fact below the criteria set by the Labor Code.”

Dennis Derige, spokesperson of Partido ng Manggagawa-Cebu, revealed that supporters of the Paul Yu workers from abroad have already contacted the major US customers of the company. “We are asking Pier 1 Imports and Home Center to investigate the violations of labor standards and the right to organize at Paul Yu. These are serious infractions of the vendor codes of conduct that such US companies must uphold,” he declared.

Since the suspension of more than 300 workers starting last June 22, hearings had been conducted at the National Conciliation and Mediation Board and the Department of Labor and Employment. Talks have ended in a deadlock as management has refused to face the workers demand for the lifting of the suspension and the start of negotiations on their grievances while workers reject management offer of separation.

Dondoyano declared that the picket today will continue in the following days until there is a breakthrough in the negotiations. “Militancy in struggle is workers’ answer to management’s hardline position. We call on fellow workers in the export zone to rise up in struggle for labor rights and welfare,” he added.

Monday, June 29, 2009

Update on the Paul Yu labor dispute

June 29, 2009

Management has changed its position from not saying anything during the hearings at the National Conciliation and Mediation Board (NCMB) (and privately daring the workers to file a court case for illegal suspension) to an offer to retrench the workers and pay a separation rate of P2,000 (approximately US$40) per year of service. That is below the standard set by the Labor Code that retrenchment in cases where the company is not suffering losses should be a month's wage per year of service (the minimum wage prevailing at Cebu is roughly P7,000 (US$140) a month). At the hearing today at the NCMB, management raised the offer to P3,000 (approximate US$60).

The workers are refusing management's offer of separation. Likewise, the workers do not want to pursue a case at the labor court for illegal suspension since the system is so corrupt and even when the workers get a favorable decision, it would take a year or more. Instead the workers would rather fight it out through protests and solidarity.

Cebu workers hold “Day of Solidarity” for Keppel and Paul Yu workers

Press Release
June 29, 2009


Hundreds of workers from around a dozen unions and associations in Metro Cebu held a “Day of Solidarity” for the embattled workers of Keppel shipyard and Paul Yu, a lamp shade factory inside the Mactan Export Processing Zone. Some 300 workers trooped to the picketline of the striking Keppel union and held a program from 4 p.m. to 8 p.m. today.

“The day of solidarity is an opportunity for Cebuano workers to express their support and sympathy to fellow laborers who are in the midst of disputes and struggles against capitalists who are using the crisis as an alibi to demolish workers rights and undercut labor standards. We consider the fight of Keppel and Paul Yu workers as our own fight. An injury to one is an injury to all,” declared Greg Janginon, president of the Prince Warehouse union and Partido ng Manggagawa chairperson for Cebu.

The Nagkahiusang Mamumuo sa Baradero (NMB) Keppel Shipyard-National Federation of Labor (NFL) has been on strike since June 19 after charging management of union busting. Meanwhile Paul Yu management has suspended more than 300 after one week of protests in support of seven leaders who had earlier been suspended. Roger Igot, president of the Keppel union, and Willy Dondoyano, head of the Paul Yu Workers Association, thanked the workers who attended the day of solidarity. “We can only succeed in our struggle on the strength of the militancy of the workers and the solidarity of the labor movement,” Igot averred.

The online campaign of the Paul Yu union has generated massive sympathy worldwide with more than a thousand supporters from more than 20 countries sending letters of protest through email to the management with copies furnished to the DOLE and PEZA. Paul Yu exports its lamp shades mainly to the US and Europe market. Those are the same areas where the Paul Yu workers have inspired support with hundreds of unionists and allies sending emails from the US, Canada, United Kingdom and Australia.

Dondoyano stated that “We appreciate the support from fellow Cebuano workers and unionists from abroad. This outpouring of solidarity encourages us to continue with the fight.” A hearing was held this morning at the NCMB with management offering to terminate the protesting workers and pay them P3,000 per year of service. The offer is below the standards set by the Labor Code which in cases of companies that are not suffering serious losses must grant their workers a month’s pay per year of service. The Paul Yu workers refused management’s offer.

Workers from Altamode, SAWO, Giardini, Prince Warehouse, Neostone, General Milling Corp., Lami Foods and members of PM participated in the day of solidarity. A series of speakers spoke of the workers demands against layoffs, reduction of work days, contractualization and violations of labor standards as common grievances of workers inside and outside the export zone. The workers vowed to continue with more solidarity activities and mass actions until the Keppel and Paul Yu disputes are resolved.

Tuesday, June 23, 2009

Export zone workers bring their fight to cyberspace

Press Release
June 23, 2009


Workers of Paul Yu, a Taiwanese-owned factory in the Mactan Export Processing Zone in Lapu-Lapu City producing lamp shades for the global and local market, have brought their fight to cyberspace even as they continue their protests on the ground. The Paul Yu workers association has started an online campaign to garner support for their fight against management which has suspended not just seven leaders but more than 300 workers who have participated in protests.

“We were inspired by protesters against con-ass who use cyberspace and blogs. But in our case, an online campaign also broadcasts our appeal to labor and advocacy groups abroad. The main customers of Paul Yu are in the US and Europe where there is heightened consumer and corporate consciousness in patronizing products which have been made in factories which respect codes of conduct, labor standards and workers rights,” explained Willy Dondoyano, president of the Paul Yu workers association.

The Paul Yu workers struggle continues to gain solidarity from abroad with a letter of concern signed by the United Electrical, Radio and Machine Workers of America (UE) sent today to the management with copies furnished to the Labor Department and the Philippine Export Zone Authority.

The UE letter states that “We will be watching this situation closely, and urge you to take immediate steps to ensure that the labor protections and associational rights of your employees under both domestic and international law are respected. It is our hope that you will reverse the suspensions and engage in a serous and meaningful dialog with the workers association in order to regularize employment and create a work environment beneficial to both your employees and the company.” The letter was signed by top three national officers of the union which represent 35,000 workers in the US.

“We appeal to our fellow Filipinos and workers to sign up for the online campaign as an innovative form to complement our grassroots protest,” said Dennis Derige, spokesperson for Partido ng Manggagawa-Cebu. The online campaign can be accessed at http://www.labourstart.org/cgi-bin/solidarityforever/show_campaign.cgi?c=543. The background information for the campaign can be seen at http://partidongmanggagawa2001.blogspot.com/2009/06/appeal-for-solidarity-for-paul-yu.html.

Since the online campaign started late last night, over a 14-hour period some 10 unionists from the US, Canada, Germany, Australia, India and Malaysia have already signed up. Over the weekend the US-based advocacy group International Labor Rights Forum also sent a letter to Paul Yu management expressing concern about labor rights violations at the factory.

Monday, June 22, 2009

Hundreds of Paul Yu workers suspended even as US advocacy group expresses concern over dispute

Press Release
June 22, 2009


More than 300 workers of the Paul Yu, a factory in Mactan Export Processing Zone (MEPZ) II in Lapu-Lapu City producing lamp shades for the export and local market, were suspended for 30 days starting today for participating in the work stoppage last week in support of seven leaders who were earlier suspended.

Meanwhile a US-based advocacy group, the International Labor Rights Forum (ILRF), in a letter sent to the management of Paul Yu with copies furnished to the main and Region 7 offices of the Department of Labor and Employment and Philippine Export Zone Authority, expressed concern over the “serious violations of workers’ rights” at the factory.

“The suspension of hundreds of workers is grave harassment by management. Management is willing to risk disruption of production just to teach the workers a lesson that they must pay for standing up for their rights. We appeal to our fellow workers still working not to be scabs and refuse management’s plan for them to work six days instead of three in order to make up for the loss in manpower,” stated Willy Dondoyano, head of the Paul Yu workers association,

A meeting at the National Conciliation and Mediation Board is scheduled today to hear the major issues raised by the workers such as the reduction of working days, job outsourcing, regularization of agency workers and money claims for three years of non-implementation of paternity leave and service incentive leave. The workers however will push for the resolution of the suspension of the seven leaders and the hundreds of workers.

Dondoyano insisted that “We demand that management immediately lift the suspension on the seven leaders and the hundreds of workers, and for them to negotiate with the association for the redress of workers grievances. If not then we can count on the support of US advocacy and labor groups to send letters of concern to Paul Yu’s American customers for the violations of their vendor ethical codes of conduct.”

The ILRF is an advocacy organization based in Washington, DC dedicated to achieving just and human treatment for workers worldwide. In the letter signed by Trina Tocco, ILRF Deputy Director, it says that “We ask for a prompt and effective solution to this problem. Our organization and others around the world will be monitoring this situation. We await your quick and timely intervention in this urgent and pressing matter.” Partido ng Manggagawa which is supporting the fight of the Paul Yu workers revealed that more expressions of solidarity from abroad are forthcoming.

Friday, June 19, 2009

Keppel shipyard union goes on strike and export zone workers hold sitdown protest

Press Release
June 19, 2009


The labor unrest in Cebu continues to escalate as the Keppel shipyard union went on strike at 5 a.m. today and the workers of Paul Yu, a lamp shade factory inside the Mactan Export Processing Zone, held both a sitdown protest inside the plant and a picket outside the gates.

“The State must act today with dispatch on the workers just demands or else it will have to face a full-blown workers rebellion tomorrow. We want the government to get busy with social protection for the workers instead of term extension for GMA,” stated Dennis Derige, spokesperson of the Partido ng Manggagawa (PM) in Cebu.

The shipyard workers went on strike today alleging union busting by management with picketlines setup outside the shipyard facilities. Yesterday 80 Keppel workers barged into their shipyard after one month of forced leave. The guards tried to prevent them from entering the shipyard on the pretext that the forced leave has been extended for another month but the workers were able to force their way past the gates. In a dialogue with management yesterday the Keppel union opposed the extension of their previous one month forced leave by another 30 days.

“One month is too long for our families to go hungry and sacrifice for management’s mistaken if not malicious decision to shift from ship repair to ship building. If Keppel will not open the shipyard for work then we ask the government to takeover the facilities and we will continue with the profitable ship repair work,” declared Roger Igot, president of Nagkahiusang Mamumuo sa Baradero Keppel Shipyard-National Federation of Labor.

Willy Dondoyano, head of the Paul Yu workers association, appealed for solidarity from export zone workers. “We ask for the support of our fellow workers inside the export zone. We all suffer the same violations of labor standards and repression of labor rights. Let us join hands in a common struggle for workers rights and welfare,” he stated.

In the hearing yesterday on the complaint filed by the Paul Yu workers, the Labor Department ordered the regularization of direct-hired contractual workers and the grant of benefits like paternity leave and service incentive leave for agency workers. The other major issues like the reduction of working days, job outsourcing, regularization of agency workers and money claims for three years of non-implementation of paternity leave and service incentive leave were remanded to the National Conciliation and Mediation Board. The Labor Department asked the workers to file a case at the National Labor Relations Commission regarding the suspension of the seven leaders.

Thursday, June 18, 2009

Labor unrest escalates as protests rock Keppel shipyard and Paul Yu factory

Press Release
June 18, 2009


The simmering discontent among Cebu workers escalated into open protests with Keppel workers barging into their shipyard after one month of forced leave, and Paul Yu workers picketing the Philippine Export Zone Authority (PEZA) and the Department of Labor and Employment (DOLE).

“The Paul Yu workers are now on their fourth day of a work stoppage in support of seven suspended leaders while the Keppel labor dispute has been simmering for almost four months already. The government must act today with dispatch on the workers just demands or else it will have to face a full-blown workers rebellion tomorrow,” stated Dennis Derige, spokesperson of the Partido ng Manggagawa (PM) in Cebu.

Some 80 Keppel workers returned to work early morning today with the lapse of their one month forced leave yesterday. The guards tried to prevent them from entering the shipyard on the pretext that the forced leave has been extended for another month but the workers were able to force their way past the gates. The Keppel workers are holding a sitdown protest at the moment while awaiting a response from management on their demand that they be able to work again.

“One month is too long for our families to go hungry and sacrifice for management’s mistaken if not malicious decision to shift from ship repair to ship building. If Keppel will not open the shipyard for work then we ask the government to takeover the facilities and we will continue with the profitable ship repair work,” declared Roger Igot, president of Nagkahiusang Mamumuo sa Baradero (NMB) Keppel Shipyard-National Federation of Labor (NFL).

Meanwhile the Paul Yu workers picketed the PEZA offices while the seven suspended leaders and representatives of contractual workers held a dialogue at 9 a.m. with export zone officials and representatives of management. At 2 p.m. will troop to the DOLE office in Cebu City for a hearing on the complaint the workers filed against management.

Willy Dondoyano, head of the Paul Yu workers association, said that “The three-day workweek implemented since December lacks proper documentation and due notice. Also workdays were reduced for regular workers while 40% of production is outsourced to contractors.” The workers also found out that the AVI Amor Vil Inc., the biggest among three agencies that Paul Yu has contracted to supply workers for the factory, is not registered and thus illegal. They are also complaining of non-payment of holiday pay, non-remittance of SSS deductions for agency workers, non-implementation of paternity leave and non-payment of break time.

Wednesday, June 17, 2009

Workers picket export zone authority as work stoppage enters third day

Press Release
June 17, 2009


Workers of Paul Yu, a lamp shade factory inside the Mactan Export Processing Zone (MEPZ) II producing for the export and local market, marked their third day of a work stoppage with a march from their factory to the Philippine Export Zone Authority (PEZA) office at the adjoining MEPZ I compound. The seven suspended leaders of the Paul Yu workers’ association were again prevented from entering the plant and more than 300 workers again refused to work in sympathy.

“We denounce the PEZA for being inutile in enforcing labor standards and protecting labor rights in the export zone. The MEPZ is a haven of criminals in suits while the export zone authority is a coddler of these crooked capitalists,” insisted Willy Dondoyano, head of the workers association and one of the seven suspended.

Some 30 workers from the nearby Altamode garments factory and members of the Partido ng Manggagawa (PM) marched in solidarity with the Paul Yu protesters. “The support of fellow workers is essential in gaining victory for the struggle of Paul Yu workers. We call on the workers of the export zone to join hands in solidarity in defense of our rights and welfare,” Renante Pelino, president of the newly-formed union at Altamode.

The work stoppage today paralyzed both the finishing section and the “black hand,” the main department of Paul Yu’s production where lamp shades are welded. The workers have however learned Paul Yu management is outsourcing the work at the black hand.

In the dialogue presided by the National Mediation and Conciliation Board (NCMB) yesterday, the representative of the Paul Yu management admitted that the preventive suspension of the seven leaders was faulty yet they will stand by their decision and threatened to slap absence without leave on the hundreds of workers who have refused to work. Today management sent a notice that they will terminate the contract of agency workers, many of which have participated in the protests.

“How can a foreign capitalist like the Taiwanese owner of Paul Yu stand above and ride roughshod over the Labor Code with the government powerless to lift a finger to protect the labor rights of Filipino workers? And then government wants to revise the Constitution to give more privileges for foreigners to control our economy and patrimony,” said Dennis Derige, PM spokesperson.

Tomorrow the Labor Department will hear the case filed by Paul Yu workers that three-day workweek implemented since December lacks proper documentation and due notice. The workers are also complaining that the workdays are reduced for regular workers while 40% of production is outsourced to contractors. They also found out that the AVI Amor Vil Inc., the biggest among three agencies that Paul Yu has contracted to supply workers for the factory, is not registered and thus illegal.

Among the protesting workers are agency employees who have worked for several years, some as long as five years, yet they remain irregulars whose contracts are renewed continuously every two months. Workers are also complaining of non-payment of holiday pay, non-remittance of SSS deductions for agency workers, non-implementation of paternity leave and non-payment of break time.

Tuesday, June 16, 2009

Work stoppage at export zone factory continues on its second day

Press Release
June 16, 2009


Workers at Paul Yu, a lamp shade factory inside the Mactan Export Processing Zone (MEPZ) II producing for the export and local market, continued their work stoppage for the second straight day in protest at the suspension of seven leaders of their workers association. The seven were prevented from entering the factory premises at 8 a.m. today and around 400 workers refused to work in sympathy with the suspended workers.

“More workers compared to yesterday supported today’s mass action because they know that the suspension of the seven leaders is baseless and merely in retaliation for the protest action last May 8 and the filing of a case last May 21 against management’s numerous unfair labor practices. The MEPZ is a haven of criminals in suits while the export zone authority is a coddler of these crooked capitalists,” insisted Willy Dondoyano, head of the workers association and one of the seven suspended.

The work stoppage completely paralyzed the “black hand,” the main department of Paul Yu’s production where welding of lamp shades is done by regular workers. After massing at the factory gates, the 400 workers walked out of the MEPZ II compound and are holding a program at the export zone gates. A representative of Aboitiz Land, which owns the land on which MEPZ is located, has met the workers to mediate the dispute. The workers plan to march to the office of the Philippine Export Zone Authority (PEZA) at the adjoining MEPZ I compound to air their demands.

With the labor dispute in Paul Yu escalating, workers in other MEPZ factories are expressing solidarity. Renante Pelino, president of the newly-formed union at Altamode, a garments export factory in MEPZ II, said that “We support the fight of the Paul Yu workers against reduction in workdays even as management outsources production to contractors. Their struggle is our struggle. An injury to one is an injury to all.” Meanwhile Greg Janginon, chairperson of Partido ng Manggagawa in Cebu, declared that “The global recession is just an alibi for Paul Yu management to annihilate workers rights and weaken labor standards. Workers refuse to pay the price of a crisis that is not of their making.”

On Thursday the Labor Department will hear the case filed by Paul Yu workers that three-day workweek implemented since December lacks proper documentation and due notice. The workers are also complaining that the workdays are reduced for regular workers while 40% of production is outsourced to contractors. They also found out that the AVI Amor Vil Inc., the biggest among three agencies that Paul Yu has contracted to supply workers for the factory, is not registered and thus illegal.

Among the protesting workers are agency employees who have worked for several years, some as long as five years, yet they remain irregulars whose contracts are renewed continuously every two months. Workers are also complaining of non-payment of holiday pay, non-remittance of SSS deductions for agency workers, non-implementation of paternity leave and non-payment of break time.

Monday, May 11, 2009

MEPZ workers go on work stoppage in protest at grievances

Press Release
May 8, 2009


An overwhelming majority of workers at a lamp shade factory inside the Mactan Export Zone went on a work stoppage early this morning in protest at various grievances of regular and agency workers. Some 200 workers downed their tools and trooped to the office of the management of Paul Yu, a locator in MEPZ II producing lamp shades for the export and local market, to seek a dialogue for redress of their grievances.

At the moment, management has agreed to talk to the workers about their grievances and PEZA officials will oversee the dialogue. Willy Dondoyano, speaking on behalf of the protesting workers, said that “We will not return to work until management meets the demands of the workers.”

After punching in their time cards at 8 a.m. today, the Paul Yu workers assembled and went to the management office to negotiate the company’s response to their complaints. The main grievance of the workers is the work rotation that was implemented since December despite the fact that 40% of production is outsourced to contractors outside the factory. The workweek of regular and agency workers at Paul Yu has been reduced by half while job contracting has not stopped.

“Paul Yu is another case of a capitalist using the global crisis as an excuse to demolish workers rights and undercut labor standards. Workers are refusing to pay the price of a crisis that is not of their making. We salute the unity of regular and agency workers at Paul Yu, and their fight for labor rights,” stated Dennis Derige of Partido ng Manggagawa in Cebu.

Agency workers are also up in arms at the labor contractualization at Paul Yu. Many agency employees have worked for several years, some as long as five years, yet they remain irregulars whose contracts are renewed continuously every two months. Workers are also complaining of non-payment of holiday pay, non-remittance of SSS deductions for agency workers, non-implementation of paternity leave and non-payment of break time.

Management has plans to change the name of the company and relocate the factory to Carmen, a town in the far north of the Cebu. However workers are resisting the relocation since it will to their dislocation.