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Workers laid off by Philip Morris Fortune Tobacco call for ‘due process’

Aika Rey

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Workers laid off by Philip Morris Fortune Tobacco call for ‘due process’
The over 200 laid off workers say the change in corporate structure was not explained to them

MANILA, Philippines – Over 200 workers laid off by Philip Morris Fortune Tobacco Corporation (PMFTC) called for “due process” amid massive retrenchment schemes this year.

In an interview with Rappler, union president Rey Almendras said that around 220 workers were laid off at the Marikina plant of the tobacco company, while 55 were retrenched at the Vigan plant in Ilocos Sur. 

“Ang tanong namin, ‘Bakit?’ ‘Yan ang malabo. Dapat merong due process. Eh walang due process na nangyari dito. Kahit na may union, parang binabastos kami ng management,” said Almendras, who had been working with Fortune for 20 years and a total of 7 years since Philip Morris bought the firm.

(Our question is ‘Why?’ That’s what is confusing. There should be due process. There was no due process in this case. Even if there was a union, it’s as if the management did not respect us.)

Almendras added said that there were 5 union officers that were also laid off. The workers started staging a strike on August 28, and set up their picket across the factory in Parang, Marikina.

“Kaya kami nagwelga dahil basta na lang nilang ginawa.  Kasi pag meron kang union, dapat nagsisilbing mediating agent ‘yan eh. (The reason why we’re on strike because they suddenly [laid off the workers]. If you have a union, they should be the mediating agent),” he noted.

This was not the first time that PMFTC has laid off workers. In 2015, there were some 600 workers retrenched, Almendras said.

What the workers want: So far, the PMFTC Labor Union is calling for the reinstatement of 15 workers who refused to sign the retrenchment packages offered by the tobacco company.

Almendras noted that some of the workers have been with the PMFTC for the longest time and that they are too old to look for a new job nor too early to retire.

“Walk the talk. Pangalagaan nila ang empleyado nila. Dapat sa gawa, hindi lang sa salita. (They should care for the welfare of their employees. It should with their actions and not just with their words),” he added.

The union will be meeting with the management as mediated by the National Conciliation and Mediation Board (NCMB) on Wednesday, October 10. Almendras is hoping that a resolution will be achieved on Wednesday.

Right-sizing: In a statement sent to Rappler, PMFTC said that the substantial excise taxes brought by passage of Sin Tax Law in 2013 forced them to restructure their operations.

“[F]ollowing an assessment of our manufacturing operations, PMFTC Inc has made the difficult decision to restructure the operations of its Marikina Plant and to close the Green Leaf Threshing Plant in Vigan, Ilocos Sur,” PMFTC said.

They explained that the reduction in production volume caused “unutilized capacity and manpower.” (READ: Health advocates urge gov’t to increase tobacco tax)

“The production volume in the Marikina Plant has dropped by as much as 50% since 2015 which is essentially about 58% only of its installed capacity while production volume in the Vigan Plant declined by 40% since 2013 and currently running at 50% spare capacity,” the statement said.

The management said that they have no objection to the decision of the union members to go on strike “as long as the law is respected.”

The PMFTC said they provided for generous separation packages – which Almendras confirmed – to assist the retrenched workers. (READ: Cigarette prices to increase more with passage of universal health bill)

“Our top concern is to ensure the welfare of our employees who are affected by this decision. We are working closely with the to provide the asssitance they need in this difficult time. This includes generous separation packages in excess of legal requirements and viable programs to help them transition to other sources of livelihood,” they said. – Rappler.com

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Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.