EVADING RESPONSIBILITIES
FOR PROFIT
The Kilusang Mayo Uno-Cordillera and its affiliate, the Lepanto
Employees Union-NAFLU-KMU strongly criticize and oppose the anti-worker
policies of the Lepanto Consolidated Mining Company (LCMC) that
persecutes the workers through unfair labor practices, gross violation
of the Collective Bargaining Agreement (CBA) and union busting.
By employing temporary closure, reduction
of workdays to 15 days for the underground workers and 20 days per
month for the surface workers; forced retirement, delayed and partial
wages and non-remittance of social benefit contributions, the LCMC
management clearly violated workers' rights to security of tenure,
social benefits, their signed CBA and a trend to subsequently bust
the unions.
In a drastic action, LCMC showed its cruel and merciless nature.
On October 2008, it temporarily closed the operations of the Diamond
Drilling Company of the Philippines, the Shipside, Inc., and the
Paramina, all subsidiaries of the company leaving some 300 workers
jobless and their families hungry.
Stealing workers' social benefits
The company had been
stealing the workers contributions to the Social Security System
(SSS), PhilHealth and the Pag-ibig, payment of other loans and some
of their monetary and non-monetary benefits. The company had been
regularly deducting these contributions from the workers' payroll
and not remitting the same to the concerned agencies. This had been
going on for two years now.
LCMC still has to remit some P52,220,509.43 for
premiums and loan payments to the SSS and P 3.4 million un-remitted
to PAG-IBIG since April 2007 and others for Pag-ibig and coop loan
payments. Moreover, the company has to pay back wages retroactive
to November 2007 after the 24TH CBA was concluded on March 8, 2008.
Infringing agreement
Aiming to foster industrial peace, the LEU-NAFLU-KMU,
the LSFU-NAFLU-KMU and The Lepanto Local Staff Union (LLoSU) signed
a MOA wherein the company promised to pay its financial obligations
to concerned agencies for its workers' social benefits. The management
failed to comply to the terms of the memorandum of agreement it
signed with at least three labor unions inside its operations. This
shows their insincerity and hypocrisy. The MOA was signed on July
2008 at the office of the National Conciliation and Mediation Board
of the Department of Labor and Employment - Cordillera Administrative
Region (NCMB-DOLE-CAR).
Losing income yet aggressively expanding
The company, unofficially, is claiming that it is
losing. But the following data and workers' accounts say otherwise.
1. From Lepanto's annual report, they have retained
earnings of P1.096 billion for 2007 and another P736.138 million
for the second quarter of 2008;
2. The company lately signed a memorandum of
understanding with Zijin Mining Group of Company, Ltd for the immediate
development and operation of the Far Southeast Project, a deep-seated
gold-copper porphyry located in Mankayan, Benguet. Zijin is one
of the biggest gold producers in China;
3. Another significant development is the reopening
of the Enargite mine on order to achieve the copper flotation plant's
full capacity of 3,500 tonnes per day;
4. Contrary to LCMCs claim, there is actually
a continuing increase of gold and metal prices at the international
market. Early this year, gold price rose to $695.39/oz from last
year's $603.73.oz. Gold prices have reached unprecedented levels
this year even breaching the US1000/ounce mark;
5. Lepanto is aggressively expanding northward,
southward, westward and eastward from Benguet to its outside. It
has expansion applications, approved, at Cervantes, Ilocos Sur;
Bakun, Kibungan, Atok, Kabayan, Bokod in Benguet; Tinoc, Hungduan,
and Asipulo in Ifugao; Kayapa and Bambang in Nueva Vizcaya ; Bauko,
Tadian,Sagada, Sabangan, Bontoc, and Sadanga in Mountain Province;
Tubo in Abra; and Calanasan, Kabugao, Pudtol, and Luna in Apayao;
6. Its subsidiaries Far Southeast Project, Shipside,
Inc., and Diamond Drilling Company of the Philippines have their
respective expansion areas in Benguet, Ilocos and Mt. Province;
and
7. Underground workers claim that operation of
some high-grade ore veins were closed down temporarily in order
to find other more gold or copper porphyries. In this way, it will
appear that there is a low production outcome.
While maintaining sufficient production for its
operational costs, Lepanto is now focused on developing other sites
preserving high-grade areas for later production to mask the truth
and to justify their claim of low production.
Seemingly, Lepanto's income from production is low because it requires
the acquisition of additional underground equipment for the development
of more gold/copper areas in its expansion areas.
LCMC's anti-worker policies are clear attempts to
repress workers rights and demolish the militant labor movement.
We appeal to the public to support the Lepanto workers' struggle
for just wages, security of tenure, and right to organize. Lepanto
must be held accountable for its injustices and violation of economic
rights.
Kilusang Mayo Uno-Cordillera
|