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Effect given to the recommendations of the committee and the Governing Body - Report No 376, October 2015

Case No 2815 (Philippines) - Complaint date: 25-AUG-10 - Closed

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Effect given to the recommendations of the Committee and the Governing Body

Effect given to the recommendations of the Committee and the Governing Body
  1. 112. The Committee last examined this case at its November 2012 meeting [see 365th Report, paras 1259–1278]. At that occasion, it made the following recommendations:
    • (a) With respect to Cirtek Electronics Corporation, the Committee:
      • (i) expects that the TTCEC will review the initial allegations of the complainant relating to the dismissals of three sets of trade union officials without further delay and once again requests the Government to provide detailed information with regard to the results of the conducted inquiry;
      • (ii) requests that, should it be found in the course of that inquiry that the abovementioned trade union officials were dismissed due to their exercise of legitimate trade union activities, the Government take the necessary steps to ensure that they are fully reinstated without loss of pay and keep it informed of any developments in this respect;
      • (iii) requests to continue to be kept informed of the final outcome of any relevant judicial or other proceedings and of all measures of redress taken;
      • (iv) requests to be informed whether, in the meantime, the collective bargaining agreement between the union and the management has been concluded, and, if not, expects that the Government will take measures to promote collective bargaining between the parties so that, in line with the decision of the Supreme Court, a collective bargaining agreement will be concluded in the near future either through negotiation or, if necessary, with the assistance of voluntary conciliation, mediation or arbitration; and
      • (v) urges the Government to ensure that the above inquiry examines the new allegations of anti-union interference and harassment as a matter of priority, and requests the Government to keep it informed of any developments in this respect.
    • (b) With respect to Temic Automotive Philippines, the Committee:
      • (i) noting with interest the creation of an impartial Tripartite Team composed of members of the Regional Tripartite Monitoring Body-National Capital Region with the mandate to conduct a plant-level verification of the parties’ claims, requests the Government to provide detailed information with regard to the conduct and outcome of such an inquiry;
      • (ii) requests that, should it be found in the course of the inquiry that the 28 dismissals were anti-union in nature and aimed at eliminating any union representation for the departments concerned, the Government take the necessary steps to ensure that the union members and officials concerned are fully reinstated without loss of pay, and keep it informed of any developments in this respect; and
      • (iii) firmly expects that the principles enounced in its conclusions will be taken into account in practice, in a manner so as to ensure that, in the remaining still ongoing legal proceedings, the relevant bodies will effectively consider in their review the allegations put forward by the complainant that the outsourcing plan was actually aimed at eliminating any form of union in the departments concerned, and requests to be kept informed of the outcome of the pending legal proceedings.
  2. 113. The complainant provided follow-up information in communications dated 2 May 2013, 16 July 2013 and 14 January 2014.
  3. Temic Automotive Philippines
  4. 114. With regard to the case of Temic Automotive Philippines, the complainant indicates that on 24 January 2013, the TAPIEU-FFW and the Temic Automotive Philippines Inc. (TAPI) management entered into a compromise agreement to settle all pending cases between the parties.
    • ■ The company will rehire Mr Dumolong in its EBS production department and he keeps the same salary without loss of seniority, rights and privileges.
    • ■ The union shall then withdraw all the cases pending before the national courts and the ILO.
    • ■ The Department of Labor and Employment (DOLE) will extend financial assistance to those workers of the two departments who availed themselves of the voluntary retirement packages (VRP), in a form of grant depending on the project proposal that they will submit, with the recommendation of the TAPIEU-FFW.
  5. In conclusion, the complainant submits: “In consideration of the above agreement, and with the recommendation of the Union, may we submit that the complaint filed by the TAPIEU-FFW against the TAPI on violations of Conventions 87 and 98 particularly on the dismissal of Endrico Dumolong be deemed closed and terminated”.
  6. Cirtek Electronics Corporation
  7. 115. With regard to the case of the Cirtek Electronics Corporation (CEC), the complainant organization alleges the continuation of threat and harassment of the Cirtek Employees Labour Union-Free Federation of Workers (CELU-FFW) leaders in its 16 July 2013 communication. The complainant describes one instance in which the HR manager of the CEC is said to have told Soledad A. Romero, President, and Ana Fernandez, Vice President of the CELU-FFW, that they should stop acting as union leaders because she did not want anything to happen to them, and she knew that it had already happened to other leaders. Both union leaders complained to the investigator of Baranggay Loma, Biñan, Laguna, reporting serious threats against their lives. Copies of the blotter and the affidavit of Soledad Romero are attached to the communication. The complainant affirms that the HR manager continuously prods the officers of the union to resign from their jobs. Ana Fernandez was forced to resign as a result of the above threat. The complainant affirms that the HR manager was behind the illegal termination of previous sets of officers that are the subject of the complaint before the Committee. Two sets of the CELU-FFW presidents, Antoniette Eredilla and Victoria Tipdas, and some of its officers, namely Lorena Montañez and Marivic Pinca, already resigned as a result of her instigations. According to the communication, the HR manager also took a strong stance to oppose the existence of the genuine union in the company.
  8. 116. With regard to the merger of the two unions and creation of the United Cirtek Employees Association (UCEA), the complainant recalls that, in the referendum on the merger, the majority of the bargaining unit, 331 against 14, voted for the merger. Also a majority of 258 against 87 voted for retaining affiliation with the FFW. The complainant further indicates that practically nothing happened thereafter. All efforts to conduct elections of a new set of officers for the UCEU were foiled by the management. No constitution and by-laws were agreed on and, most importantly, no collective bargaining agreement was entered into between management and the workers. DOLE Regional Office No. IV-A which chaired and spearheaded the Tripartite Team for Cirtek Electronics Corporation (TTCEC) neither took any follow-up nor conducted any further actions to ensure that the merged group can move to the next level. The complainant alleges that the HR manager interfered in the meantime, reviving the UCEA by appointing Alma Tinay as President and other officers in the “hoax union”. DOLE Regional Office No. IV-A issued them a registration despite knowing and spearheading the TTCEC. It appears that the TTCEC has been a futile tool. At this instance, unless the SOLE herself directly takes action, it would appear there is no end to the trampling of the rights of the workers in Cirtek.
  9. 117. In its 14 January 2014 communication, the complainant confirms the conclusion of the Memorandum of Agreement (MOA) among officers of the CELU-FFW and the “other group of employees in Cirtek who usurped the name of the UCEA” and the CEC represented by its President and other officers. DOLE Secretary Rosalinda Baldoz and Regional Director Zenaida Angara attested to the proceedings of the agreement. The complainant further confirms the holding of elections of UCEA officers on 26 October 2013 under the supervision of DOLE Regional Office No. IV-A. However, it alleges that Alvin Gonzales, Chairman of the Trade Federation for Metals, Electronics, Electrical and Other Allied Industries (TF4), and another representative of the FFW were isolated from observing the proceedings at the initiative of the HR officer of the company. They were forced to stay in the car the entire day until 2 a.m. the following day when the counting of the ballots ended. The DOLE representative could not do anything about the situation for alleged lack of jurisdiction on the matter. The election pushed through and the original group from the CELU-FFW won all the posts, from the president down to the 14 board members with a huge advance.
  10. 118. The complainant further indicates that despite their victory, the newly elected officers of the union were subjected to continued harassment upon order of the abovementioned HR officer: in November 2013, the guards conducted a thorough search among the union officers and confiscated all the papers they were carrying in relation to union check-off and prohibited them from distributing them to all union members. According to the complainant, at the time of the communication harassment still continued at the plant level particularly because management was supporting the other group. That group who lost filed a baseless protest against the elections they freely participated in. The complainant indicates that it cannot help doubting that disputing the elections is a management-initiated action and is part of the harassment against the winning union officers who had the overwhelming mandate among the rank and file employees of the company.
  11. 119. The complainant recalls that the agreement of 2 September 2013 requires the withdrawal of all cases, including the complaint filed before the ILO. However, in view of the situation described in the communication, it considers itself to be in a position to request only a conditional withdrawal of the complaint and states that, should the situation change for the better as regards the exercise of the union’s freedom of association and the right to collectively bargain at the plant level, and subject to the full recognition of the newly elected union officers and full compliance with the 2 September 2013 MOA, it would withdraw the complaint.
  12. 120. In communications dated 2 May 2013, 26 September 2013 and 7 November 2013, the Government provided supplementary information.
  13. Cirtek Electronics Corporation
  14. 121. With regard to anti-union practices in the CEC, the Government recalls in its 2 May 2013 communication that through the facilitation of a TTCEC, a new set of the CELU-FFW officers were elected and the FFW appointed CELU President, who was suspended from employment, was recalled. The Government further indicates that the final report of the TTCEC, submitted to the DOLE Secretary on 27 March 2012, found that the conduct of the CELU-FFW election of a new set of officers and registration of a new union disproved the alleged suppression of workers’ rights at Cirtek; and that the series of TTCEC meetings facilitated the early termination of the case before the Supreme Court, as well as the early payment of monetary benefits to workers.
  15. 122. The Government also provides information on the merger process of the two unions present at the plant, namely the CELU-FFW, and the Cirtek Electronics Corporation-Independent Labour Union (CED-ILU), into the UCEA. Recalling that in a referendum held on 26 October 2011, 331 of 345 employees voted for the merger, the Government indicates that the official registration of the UCEA stalled because of disagreement between the two combining unions on the constitution and by-laws. The DOLE regional office organized several meetings between them for discussing the issues, but none pushed through. The CELU-FFW insisted to push for ratification of the UCEA constitution and by-laws, but the CEC-ILU disagreed on union dues and other issues. The Chairman of the TTCEC suggested that the issues on the Constitution and by-laws be settled among the general membership. The CELU-FFW was amenable to the conduct of a certification election to settle the issue of representation.
  16. 123. In its communication dated 26 September 2013, the Government indicates that on 2 September 2013, the CEC, the CELU-FFW and the UCEA entered into a MOA, a copy of which is attached to the communication. The agreed terms are as follows:
    • i. The election of the new set of union officers of the merged unions which resulted into a single union now registered and known as United Cirtek Employees Association (UCEA) will be conducted on October 26, 2013 and supervised by DOLE Regional Office No. IV-A;
    • ii. The Constitution and By-Laws of UCEA shall be reviewed and ratified by the members of the union two weeks after the election of officers mentioned above;
    • iii. The new CBA concluded between CIRTEK and UCEA shall be subjected to a review to ensure that the provisions thereof are in accordance with the Labour Code of the Philippines and its Implementing Rules and Regulations and in no way has the new CBA resulted in diminution of existing benefits;
    • iv. The FFW Legal Centre shall continue to be the legal adviser of UCEA;
    • v. All cases filed by any party to this agreement against each other, including the petition for certification election pending before DOLE Regional Office No. IV-A, the unfair labour practice before the NLRC Regional Arbitration Branch No. IV-A and the ILO case filed by FFW shall be withdrawn;
    • vi. All outstanding issues and concerns affecting the employees and the company shall be discussed at the plant level through the immediate activation of the grievance machinery;
    • vii. The undersigned parties hereby commit to ensure that stable and harmonious labour–management relations shall be the cornerstone of a mutually beneficial management–union relationship at CIRTEK ELECTRONICS CORPORATION.
  17. The Government concludes that with this agreement it is hoped that all the issues have been addressed and a good labour–management relationship will finally ensue. The DOLE, through Regional Office No. IV-A, shall monitor the parties’ adherence to the MOA.
  18. 124. In a communication dated 7 November 2013, the Government indicates that, on 26 October 2013, in compliance with the agreement, the election of officers of the merged UCEA was conducted and states that the election of a new set of officers will set in motion the organizational review of the union constitution and by-laws and the provisions of their collective bargaining agreement. With this, the Government requests the closure of ILO Case No. 2815.
  19. Temic Automotive Philippines
  20. 125. With regard to TAPI, the Government provides supplementary information in its 2 May 2013 communication. Recalling the creation of the Tripartite Team for Temic Automotive Philippines Inc. (TTTAPI) upon recommendation of the Committee, the Government indicates with regard to the fate of 28 workers affected by the outsourcing who had accepted the VRP that, at the first meeting of the TTTAPI, the representative of management gave an option to rehire the 28 in other positions. An agreement was reached that both union and management will prepare profiles of the 28. The DOLE-National Capital Region (NCR) conducted the profiling using the Computerized National Manpower Registry of Skills form used for displaced workers to assess their needs in terms of assistance and possible placement for wage employment and non-wage employment (i.e. livelihood and entrepreneurship). Accordingly, 11 are presently employed under the contractors of TAPI; three are self-employed; one is working in Makati; two cannot be contacted and 11 are unemployed. The DOLE shall extend livelihood grants to the 28 upon submission of their project proposal.
  21. 126. With regard to the case of Mr Endrico Dumolong who did not avail himself of the VRP, was dismissed for redundancy and whose case was pending before the Court of Appeals, the Government indicates that the DOLE-NCR scheduled a meeting with him to discuss possible solutions and amicable settlement in relation to his illegal dismissal case before the Court of Appeals. Two options were offered to him: the company would rehire him without regard to previous years of employment, but with payment of a separation package; or the company will absorb him with continuous employment in the EBS production department, without loss of seniority, rights and benefits, keeping the same salary, and without payment of a separation package. He preferred the second option, and agreed to withdraw his petition before the Court of Appeals. On 24 January 2013, a compromise agreement was signed between TAPI, the TAPI Employees Union (TAPIEU); TF4 and Mr Endrico Dumolong. A copy of the agreement is attached to the Government’s communication. The trade unions have agreed to withdraw the cases before the Committee and the Supreme Court.
  22. 127. The Committee takes note of the information provided by the Government and the complainant organization. With regard to Temic Automotive Philippines, the Committee welcomes the conclusion of a compromise agreement between the company, the trade unions and Mr Endrico Dumolong, in accordance with which Mr Dumolong will be rehired without loss of salary, rights and privileges. The Committee notes with interest the indication of the Government that, at the first meeting of the TTTAPI, the company gave an option to rehire the 28 workers affected by the outsourcing of warehouse and facilities departments in other positions and that the DOLE-NCR conducted the profiling of those workers with a view to providing them with grants upon submission of their project proposals. The Committee also notes that the complainant organization, in application of the abovementioned compromise agreement, submitted the request that the complaint filed by the TAPIEU-FFW concerning Temic Automotive Philippines Inc., on violations of Conventions Nos 87 and 98, particularly on the dismissal of Endrico Dumolong, be deemed closed and terminated.
  23. 128. The Committee takes fully into account the complainant organization’s wish to withdraw the complaint concerning Temic Automotive Philippines Inc. Considering the concurrent information provided by the Government and the complainant and the reasons put forward to explain the withdrawal, the Committee observes that the complainant has expressed its wish in full independence and the complaint has become without object. Hence, the Committee concludes that the complaint concerning Temic Automotive Philippines does not require any further examination.
  24. 129. With regard to the CEC, the Committee welcomes the conclusion of the MOA between the company and the trade unions present at the plant in the presence of the Secretary of Labour and Employment and notes with interest that the agreement settled important issues concerning the election of officers of the UCEA, review and ratification of its constitution and by-laws, and review of the collective bargaining agreement between the UCEA and the company. The Committee notes that the agreement also required the withdrawal of all cases filed by all parties, including the present case before the Committee.
  25. 130. The Committee welcomes the conduct of elections of officers of the UCEA on the date required by the MOA under the supervision of the DOLE regional office representative and notes the indication of the complainant that the CELU-FFW candidates won all the positions. However, the Committee notes with concern the allegations of the complainant organization, according to which the management of the company subjected the newly elected officers to continuous harassment, including through searches, confiscation of papers related to union check-off and prevention of distribution of those papers among union members. The Committee also notes with concern the allegation of the complainant as to the interference of management into trade union affairs, through alleged support of the other group and its disputing the elections held in compliance with the MOA. The Committee observes that, in view of the situation of the union’s freedom of association and the right to collectively bargain at the plant level, the complainant organization sees itself only in a position to request a conditional withdrawal of the complaint subject to the full recognition of the newly elected union officers and full compliance with the 2 September 2013 MOA.
  26. 131. Considering that the Committee has received no further information from the Government or the complainant organization with regard to the actual implementation of the MOA, and considering that despite the transmission of the allegations of anti-union practices at the CEC, the Government has not provided any additional information on the eventual steps taken to clarify and remedy the situation, the Committee, while noting with interest the steps taken by the Government to implement its recommendations, requests the Government and the complainant organization to provide it with any additional follow-up information on the developments between the union and the company and in particular to indicate whether any further acts of anti-union interference have been detected.
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