Alvarez stated that the negotiations led to the programmed release of P204 million from the DBM as initial downpayment for the sale of 1,500 hectares of uncore-related PNR properties. With this amount payment of the long delayed salary differentials of PNR’s 1,950 employees may be immediately addressed.
The GSIS problem has also been resolved with the National Government absorbing the unremitted premiums amounting to P272.639 million thereby reopening the lending windows in favor of PNR employees. The DBM is also set to release funds to answer for unpaid benefits of PNR retirees.
The threat of mass action by PNR employees association was unnecessary as PNR management and top officials of DOTC were already in earnest discussions with Malacañang to secure fund releases against the sale of PNR properties long occupied by informal settlers to the actual occupants as embodied in by the EO.
Alvarez stated that the sale of PNR properties would also help in the partial implementation of the Executive Order recently signed by President Arroyo supporting the low cost housing program of the administration.
It will be noted that the outstanding benefits unpaid were inherited from the previous administration and due mainly to PNR’s financial woes as it was the object of many years of neglect.