THE MILITANT NAFLU-KMU in Eastern Visayas, in an emailed statement this week, has slammed the Lopez Group of Companies for allegedly monopolizing the power supply in the region and dictating its increasing prices, and furthermore of oppressing its workers by slamming down the throats of some 200 employees an unwanted Early Retirement Package.
Both allegations have been denied by the central office of the Energy Development Corporation, saying that Jose Dante Senillo, regional coordinator, “did not study his facts and figures well”.
In the statement, written entirely in Waray dialect, the Kilusang Mayo Uno said that the EDC monopolizes the power industry in the region and can dictate on the rates. Senillo said EDC operates Malitbog Plant (232.5 MW), Tongonan 1 (112.5 MW), Mahanagdong A (120 MW), Mahanagdong B (60 MW), Upper Mahiao (125 MW).
Even so, the statement adds, it cannot supply the region’s combined need of 182 MW and what’s worst is that its subsidiary company, Green Core, is prioritizing the needs of the Aboitiz Group of Companies, leading to the recent spate of blackouts and power shortage.
EDC, on the other hand, said that it has only full control of Tongonan I which has a rated capacity of 112.5 MW. Alas, its real capacity when it was bought was only around 80-90, and only improved lately because of a massive plant rehabilitation program. And its output entirely supplies the needs of region 8 customers like PASAR, PhilPhos, DORELCO and Leyeco II.
Dave Jesus Devilles, public relations officer, said that the other plants as enumerated by Senillo are all included in the bundle that NPC still operates. He said that the plants, while maybe owned and operated by a Lopez company already, has the contractual obligation to supply to NPC and it is the latter that distributes the power supply to end customers.
The sale of the contracts to supply, however, was deferred after the Aquino administration was installed because of a growing call to review the privatization of power plants and study its effect on the people.
He also added that they do not sell power to the Aboitiz Group which is a competitor in the power industry. “We do not sell to competitors. That is not a sane business policy”, he said.
For the second issue of labor oppression, the “oppressive Early Retirement Program” that the union is complaining of was a demand of the employees themselves, management pointed out.
EDC said, “the company is currently implementing an Early Retirement Program (ERP)which offers a generous package to qualified employees”.
Management approved the ERP to accede to persistent requests of many senior employees who want to retire early, ahead of the mandatory retirement age of 60 years old, and enjoy the fruits of their labor.
After thorough deliberations and in consideration of all factors affecting company operations, management agreed to grant the request to implement the ERP to employees who are 50 years old with at least 10 years of service.
As of Aug 16, 2010, 222 EDC employees have already submitted their ERP application. Of the 222 employees, 171 union employees have voluntarily applied for early retirement.
While many of the qualified employees welcomed and are grateful for the ERP, management expects a few who might have different perspectives. Management carefully studied and evaluated the possible effects of the ERP to both employees and the Company.
Overall, the ERP will result in the greater good for all concerned parties. It will ensure sustainability of the Company’s operation.
As a responsible and caring employer, EDC, which considers its human resource as its most valuable asset, has included several post-retirement benefits in the ERP package that will provide for the employees’ security and well-being long after their separation from the Company.
Among them are the continuous hospitalization and life insurance plans, livelihood assistance, outplacement, seminars on Managing One’s Retirement Fund and paid terminal leave. Management has also tapped the services of financial and investment consultants to guide retirees in the money market.
Despite the downsizing, EDC wants to assure its customers and stakeholders that operations will remain unhampered and efficient. By Lalaine M. Jimenea
KMU slams Lopez Group for labor oppression, dictating on power rates
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i would like to have further discussion in additions of my statement of this big issues of EDC I am willing to undergo some interviews with any reporters of our local news paper here in Ormoc City.
this is my contact no. 09126020455