"We are gratified and satisfied with the decision of Mirant Philippines management," Lotilla said.
He said the move resolves one of the utmost concerns of the Philippine government. "We want to ensure that the welfare of the employees that would be affected by the sale is protected."
"Employees are part of the assets of the corporation. The investors need to take care of them as they will be the ones to run the Mirant power plants," he said.
Late last week, Mirant Philippines chairman and president Jose Leviste Jr. said they would formalize and come up with a written policy on the severance package this week.
Leviste said he had personally relayed this matter to the employees in the Sual and Pagbilao plants last week.
"I told them Mirant will formalize in its company policies the practice of giving 2.5 months for 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 practice, and our written policy does not reflect it. So we’re going to put it in writing and assure our employees on that matter," he said.
He said 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 which 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.
The Mirant chief said they would revise this particular part of the MIP to assure employees that their welfare are aptly protected.
He said they have yet to thresh out details on how the new package will be implemented.
"The issue on whether when our employees will be severed has yet to be discussed, 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 added.
Leviste 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 can access," he said.
The changes, he said, would also be reflected in the sale agreement. "We are going to put it also in the PSA [purchase and sale agreement], in short it will be part of the deal. If they are severed for whatever reasons, they are covered," he said.