Group slams PNoy for prioritizing Korean investments over workers’ concerns

Picketline at Tae Sung factory in February 2015

The labor party-list group Partido Manggagawa (PM) denounced President Benigno Aquino III for neglecting to raise urgent concerns of Filipino workers of Korean-owned companies in the country to South Korean President Park Geun-Hye at the just concluded Asia Pacific Economic Cooperation summit. Media had reported that Aquino vowed to protect some one million Koreans residing in the Philippines as requested by Park.

Rene Magtubo, PM national chair, stated that “As we expected, when President Aquino met President Park, they talked about promoting trade and investments. Aquino spoke not a word about protecting union rights and decent pay for workers despite many ongoing labor rows involve Korean-owned factories in the Philippines.”

“On the specific case of Korea’s state-owned KEPCO coal plant in Cebu, the Office of the President had intervened to impose an assumption of jurisdiction (AJ) on the planned strike against illegal dismissals and union busting. These circumstances merit it being discussed between the two presidents if only to resolve the long-running dispute,” Magtubo added.

Workers from two Korean-owned companies now embroiled in labor disputes had challenged APEC on the issue of labor rights. Employees of power company KEPCO-Cebu and metal factory Tae Sung in Cavite have charged their managements with union busting and have pending labor disputes.

Lowell Sanchez, president of the KEPCO Cebu Supervisors Association (KCSA-WSN-Sentro), challenged the government to resolve the labor dispute. The KEPCO union filed a notice of strike last June for the unfair dismissal of Sanchez. The planned strike of the KEPCO workers was stopped by an AJ order so that it will not affect the APEC ministers meeting in Cebu last August. KEPCO operates coal plants in Cebu and Batangas.

Meanwhile, according to Charlie Piamonte, union president of Tae Sung Employees Association (TEA), they filed a notice of strike last November 12 for union busting. He explained that Tae Sung illegally fired union officer Joven Niviar, among other incidents of harassment of union members. The union is planning to conduct a strike vote within the next few days. Under the law, a union may launch a strike seven days after a majority of union members authorize it through a vote. Tae Sung is based in the Cavite Economic Zone in Rosario, Cavite and produces metal parts for the supply chain of multinational companies like American Power Conversion-Schneider Electric, Honda, Mitsubishi, Caterpillar and Siemens.

“KEPCO and Tae Sung are crystal clear examples of how APEC has facilitated growth and profit for multinational corporations that operates across borders. And they also fully illustrate how workers have born the sacrifices for the phenomenal economic benefits that corporations have reaped due to APEC. Workers across APEC countries contend with low pay, contractual work and union suppression even as their labor created the doubling of real GDP within APEC between 1989 and 2013,” Magtubo ended.

November 20, 2015

Workers rally to decry APEC’s pro-business, anti-labor record

In a multisectoral rally today in Manila, the labor party-list group Partido Manggagawa (PM) decried the Asia Pacific Economic Cooperation (APEC) summit for its “pro-business, anti-labor record.” Several hundred members of PM and other sectoral groups coalesced under the People’s Forum on APEC marched from UST to Liwasang Bonifacio in this major anti-APEC protest. As of the moment, police have blocked the mobilization in front of the Metropolitan Theater.

Rene Magtubo, PM national chair, stated that “Sacrifices born by commuters, students and workers since Monday in lost time due to heavy traffic and lost pay due to holidays as part of the summit are emblematic of the anti-people essence of capitalist globalization that lies at the heart of APEC. APEC is engaging in double-speak as repression of workers’ rights by its member countries belies its inclusive growth tagline. Inclusive growth in APEC countries is impossible without respect for basic labor rights, including the right to unionize and receive living wages.”

He cited as an example that “When Philippine President Benigno Aquino III and South Korean President Park Geun-Hye meet at this APEC summit, they surely talk about promoting trade and investments. But we doubt they will even speak about protecting union rights and decent pay for workers of Korean-owned companies in the Philippines. Yet many ongoing industrial disputes involve Korean-owned factories in the Philippines.”

Workers from two Korean-owned companies based in the country who are now embroiled in labor rows are challenging the leaders of the countries on APEC’s track record on workers’ rights. Employees of power company KEPCO-Cebu and metal factory Tae Sung in Cavite have charged their managements with union busting and have pending labor disputes.

According to Charlie Piamonte, union president of Tae Sung Employees Association (TEA), they filed a notice of strike last November 12 for union busting. He explained that Tae Sung illegally fired union officer Joven Niviar, among other incidents of harassment of union members. The union is planning to conduct a strike vote within the next few days. Under the law, a union may launch a strike seven days after a majority of union members authorize it through a vote. Tae Sung is based in the Cavite Economic Zone in Rosario, Cavite and produces metal parts for the supply chain of multinational companies like American Power Conversion-Schneider Electric, Honda, Mitsubishi, Caterpillar and Siemens.

Meanwhile, Lowell Sanchez, president of the KEPCO Cebu Supervisors Association (KCSA-WSN-Sentro), challenged the government to resolve the long-running labor row that is now the subject of an assumption of jurisdiction (AJ) order from Labor Secretary Rosalinda Baldoz. The KEPCO union filed a notice of strike last June for the unfair dismissal of Sanchez. The planned strike of the KEPCO workers was stopped by an AJ order so that it will not affect the APEC ministers meeting in Cebu last August. KEPCO is South Korea’s state-owned power company and operates coal plants in Cebu and Batangas.

“KEPCO and Tae Sung are crystal clear examples of how APEC has facilitated growth and profit for multinational corporations that operates across borders. And they also fully illustrate how workers have born the sacrifices for the phenomenal economic benefits that corporations have reaped due to APEC. Workers across APEC countries contend with low pay, contractual work and union suppression even as their labor created the doubling of real GDP within APEC between 1989 and 2013,” Magtubo averred.

November 18, 2015

Workers of Korean-owned companies with labor disputes ask: Can APEC protect labor rights?

Workers from two Korean-owned companies based in the country who are now embroiled in labor disputes are asking the leaders of the countries attending the Asia Pacific Economic Cooperation (APEC) summit if its agenda includes protection for labor rights. Employees of power company KEPCO-Cebu and metal factory Tae Sung in Cavite have charged their managements with union busting and have pending labor disputes.

The labor group Partido Manggagawa (PM) slammed APEC for “double-speak” as repression of workers’ rights belies its “inclusive growth tagline.” “Inclusive growth in APEC countries is impossible without respect for basic labor rights, including the right to unionize and receive living wages.” insisted Rene Magtubo, PM national chair.

He added that “When Philippine President Benigno Aquino III and South Korean President Park Geun-Hye meet at this APEC summit, they surely talk about promoting trade and investments. But we doubt they will even speak about protecting union rights and decent pay for workers of Korean-owned companies in the Philippines. APEC is all about business and nothing about workers.”

According to Charlie Piamonte, union president of Tae Sung Employees Association (TEA), they filed a notice of strike last November 12 for union busting. He explained that Tae Sung illegally fired union officer Joven Niviar, among other incidents of harassment of union members. The union is planning to conduct a strike vote within the next few days. Under the law, a union may launch a strike seven days after a majority of union members authorize it through a vote. Tae Sung is based in the Cavite Economic Zone in Rosario, Cavite and produces metal parts for the supply chain of multinational companies like American Power Conversion-Schneider Electric, Honda, Mitsubishi, Caterpillar and Siemens.

Meanwhile, Lowell Sanchez, president of the KEPCO Cebu Supervisors Association (KCSA-WSN-Sentro), challenged the government to resolve the long-running labor row that is now the subject of an assumption of jurisdiction (AJ) order from Labor Secretary Rosalinda Baldoz. The KEPCO union filed a notice of strike last June for the unfair dismissal of Sanchez. The planned strike of the KEPCO workers was stopped by an AJ order so that it will not affect the APEC ministers meeting in Cebu last August. KEPCO is South Korea’s state-owned power company and operates coal plants in Cebu and Batangas.

“KEPCO and Tae Sung are crystal clear examples of how APEC has facilitated growth and profit for multinational corporations that operates across borders. And they also fully illustrate how workers have born the sacrifices for the phenomenal economic benefits that corporations have reaped due to APEC. Workers across APEC countries contend with low pay, contractual work and union suppression even as their labor created the doubling of real GDP within APEC between 1989 and 2013,” Magtubo averred.

November 17, 2015

Over firing and suspension of union members: Workers of Korean-owned factory in Cavite restive anew

Workers strike at Tae Sung last February

Press Release

March 17, 2015

Workers of a Korean-owned metal factory in the Cavite economic zone, the biggest in the country, are restive once more because of a series of dismissals and suspensions of union members. The Tae Sung Employees Association, the labor union at Tae Sung Philippines Co. Inc., filed a notice of strike last Friday as it alleged unfair labor practices of the management.

In the three weeks since the settlement of a previous strike by the Tae Sung union, management has dismissed two union members and suspended six more, including one union officer. The Tae Sung union is alleging that the terminations and suspensions of active unionists are retaliatory acts and thus a violation of a settlement agreement that no such actions should be undertaken.

The National Conciliation and Mediation Board of Region IV-A has called for a meeting tomorrow between union and management in a bid to settle the new labor dispute. Just last February the Tae Sung workers launched a two-day strike over a deadlock in collective bargaining negotiations that has lasted for six months without an agreement between the union and management. The strike was settled with workers winning a wage hike and added benefits.

The Tae Sung union is citing the case of three workers in the spray department who were all charged with a case for eating in the production area. Two of them, who are active union members, were fired as a result but the third worker, who scabbed during the February strike, was given a “slap in the wrist” of just a five-day suspension.

The union is arguing that minor infractions by workers have been meted the maximum of 30-day suspensions thus constituting discriminatory acts. A 30-day long suspension means the loss of a month’s wage for the concerned workers.

Further, the union is complaining that management has delayed by a month the signing of the collective bargaining agreement even though the settlement provided it shall be finished in just one week.

The Partido Manggagawa warned of protests to support the embattled Tae Sung workers in case there is no breakthrough in the mediation meeting tomorrow. The union is also planning to hold a strike vote among its members.

Strike at Korean factory ends with agreement on wages and benefits

Press Release

February 13, 2015

The two-day strike at Tae Sung Philippines, a Korean-owned metal factory at the Cavite economic zone, ended late last night with an agreement between the union and management for wage increases and additional benefits. Just before midnight, more than a hundred jubilant strikers held a “victory march” from the factory to the main gate of the export zone.

The union got a substantial pay hike which was the most contested part of the deadlocked bargaining. Management also agreed to other benefits demanded by the union such as additional leaves and annual Christmas package.

Since the strike broke out last Wednesday morning, marathon mediation meetings have been held by the Department of Labor and Employment (DOLE) and the National Conciliation and Mediation Board (NCMB). Apparently recognizing the importance of the Tae Sung dispute, no less than the national executive director of NCMB, Reynaldo Ubaldo, together with the OIC’s of the NCMB-NCR and NCMB-Calabarzon, and the head of the DOLE-Calabarzon, facilitated the mediation.

“The workers of Tae Sung and even other companies in the ecozone have learned a valuable lesson. That they will have to unionize and fight to get a decent share in the fruits of their labor. They cannot depend on the bankrupt two-tiered wage scheme of the government,” stated Wilson Fortaleza, spokesperson of Partido Manggagawa (PM).

In the two-tiered wage scheme implemented in Calabarzon since 2012, the minimum wage is replaced by a floor wage that is set low and unchanged for five years. Increases above the floor wage will depend on negotiated productivity-based pay.

“But at Tae Sung, despite annual profits of more than USD 14 million, management did nothing to share productivity gains to its workers. Thus before the strike, most Tae Sung workers earned no more than the floor wage despite their company supplying metal parts to big electronics and auto multinationals like American Power Conversion, Honda, Caterpillar, Mitsubishi, Siemens and Deif of Denmark,” argued Fortaleza.

He added that “The Tae Sung union owes its victory to the determination of its members and to the solidarity of the labor movement in the country and abroad. The assistance of international groups was a key factor in putting pressure on Tae Sung’s multinational clients so that a fair resolution of the dispute is reached.”

Strike at Korean factory reveals myth of APEC’s “inclusive growth”

Press Release

February 12, 2015

The labor group Partido Manggagawa (PM) today slammed the Asia-Pacific Economic Cooperation (APEC) theme of “inclusive growth” as a myth as it cited the strike at a Korean factory in Cavite as microcosm of labor’s plight. An APEC senior officials meeting just concluded last weekend in Clark, Pampanga.

“APEC, which includes the Philippines and South Korea, is all about investor rights and none about labor concerns. Thus its call for inclusive growth is just a marketing gimmick in the face of worsening inequality amidst economic development. A case in point is this Korean investor in the Philippines which refuses to share productivity gains to its struggling workers,” insisted Wilson Fortaleza, PM spokesperson.

The strike at Tae Sung Philippines Co. Inc. in the Cavite economic zone entered its second day. A marathon mediation meeting yesterday failed to break the deadlock in negotiations. The union Tae Sung Employees Association asserts that management remains intransigent in bargaining and refuses to meet workers demands halfway. Another mediation session is scheduled this afternoon.

Fortaleza explained that “Tae Sung is earning more than USD 14 million (PhP 600 million) annually since 2011 but it is merely offering its 250 unionized workers a pittance of P3 million in wages and benefits or just half of one percent of the fruits of their employees’ labor!”

He added that “Tae Sung is the rule not the exception among investors in Philippine export zones and all across the industrial areas of Asia and the Pacific. Cheap labor and precarious work means a regime of exclusion and belies APEC’s lip service of inclusive growth.”

Production at Tae Sung remains paralyzed as regular workers are outside the factory picketing. Aside from bad faith bargaining, the union alleges that Tae Sung is attempting to weaken the union by firing eight union members, including one union officer, and suspending others including the union president and vice president. Workers have set up tents and a picketline outside the Tae Sung factory.

“Most of the Tae Sung workers earn just the floor wage of P315 plus allowance of P25.50 which is not even half of the cost of living in Calabarzon, which hardly differs from Metro Manila which we estimate is at least P1,000 per day for a family of five,”  Fortaleza argued.

Strike at Korean factory exposes bankruptcy of new wage system in Calabarzon

Press Release

February 11, 2015

A strike broke out today at a Korean-owned metal factory inside the Cavite Economic Zone, the biggest in the country, due to a dispute over wage increases during collective bargaining negotiations. The militant Partido Manggagawa (PM) explained that the dispute exposes the bankruptcy of the two-tiered wage system being implemented in Calabarzon for the past few years.

“The two-tiered system pioneered in Calabarzon sets a very low floor wage—the new name for the minimum wage—and only productivity-based schemes allow workers to receive above the floor wage. But at Tae Sung and other export zone factories, despite yearly profits, capitalists refuse to share productivity gains to its workers. Thus most Tae Sung workers earn no more than the floor wage despite their company supplying metal parts to big electronics and auto multinationals like American Power Conversion, Honda, Caterpillar, Mitsubishi, Siemens and Deif of Denmark,” argued Wilson Fortaleza, PM national spokesperson.

Production at Tae Sung is now paralyzed as all regular workers for the 6:00 a.m. morning shift are now picketing company gates. Tae Sung's human resource manager has talked to the picketing workers and she was told that only a collective bargaining agreement will make them go back to work.

Fortaleza added that “How can a two-tiered wage system work—in which productivity-based pay are dependent on negotiations—when the vast majority of workers are unorganized and the few unionized are disadvantaged by weak enforcement of labor laws and the willing connivance of government officials—from the Labor Department to the local government units—with foreign and local capitalists? No wonder inclusive growth remains elusive and instead inequalities prosper despite the much-vaunted economic growth that is monopolized by big capitalists.”

The Tae Sung Employees Association, the union at the Korean factory, alleges that the company has been engaged in bad faith bargaining for the past seven months of negotiations. The union has reduced its wage demand from P100 each year for three years to P25 in a bid to reach an agreement but the Tae Sung management has barely moved from insisting on no increases to offering merely P5 each year for three years. Aside from wages, almost all provisions in the union contract proposal have been rejected by Tae Sung. Since 2011, Tae Sung has been earning annually more than USD 10 million, according to the union.

Aside from being hardline in negotiations, the union claims that Tae Sung is attempting to weaken the union by firing eight union members, including one union officer, and suspending others including the union president and vice president.