In a press briefing over the weekend, Mirant Philippines chairman and president Jose Leviste said they would formalize and come up with a written policy this week.
"We kept close touch with Mirant Atlanta. From a physical standpoint, all I need to do is announce the decision in Manila. So I’ll do that on Monday. On Tuesday, I’ll send them a formal letter, and on Wednesday, this will be incorporated in our data room. Our finance will take care of it and our company funds will cover the expenses for severance pay. This will be done (this week)— I just have to discuss the developments with Manila as a courtesy," he said.
Leviste said he had personally relayed this matter to Mirant Philippines’ employees of Sual and Pagbilao last week.
"I told them (employees), Mirant will formalize in its company policies the practice of 2.5 months per every year of service, including all benefits in the past. In other words, we’re going to put it as part of our company policy. Before it was just a practice, and our written policy does not reflect it. So we are going to put it in writing," he said.
He said the management will also work out an amendment to the Mirant information package (MIP) to reflect the changes in the separation package.
"The one reflected in the MIP will be changed. But the commitment is to the Philippine employees," he said.
Another part of the MIP that would be changed is "the company’s retirement plan is a defined benefit plan with a fund held in trust by a Philippine bank. The plan covers all regular Filipino employees, including senior management and officers, and pays benefits that are above the minimum requirement of the law. The plan pays 1.25 months salary per year of service for early and normal retirements; and for voluntary separation, the plan pays one-half month salary per year of service provided the employee has served for not less than 15 years. The plan is subject to an annual actuarial assessment by a certified professional."
Leviste said they would revise this particular part of the MIP to assure employees that their welfare are aptly protected.
But Leviste admitted that they have yet to thresh details on how the new package will be implemented.
"The issue on whether when our employees will be severed has yet to be discussed to me, I don’t know what the new owner will do and I don’t know who the new owner is. But we are not only changing the company policy, hence we are putting the company practice into the company policy," he said.
He said the new policy containing the separation package will also be placed in the company’s data room.
"We are also going to put this in our data room. We have a data room where all the bidders access," he said.