North Harbor operator, labor union forge deal

MANILA, Philippines - Manila North Harbour Port Inc. (MNHPI) has committed to absorb more than 1,000 workers at the Manila North Harbor as part of its agreement with major labor groups operating in the area, paving the way for a smooth transition towards privatizing the country’s busiest port.

The commitment is contained in the memorandum of agreement signed by MNHPI officials led by president and CEO Michael Romero, and Alliance of Port/Transport Workers and Porters—North Harbor (APTWP-NH) president Jake Azores, last March 30.

The agreement is seen as the last hurdle prior to the takeover by MNHPI, the joint venture company created by Metro Pacific Investments Corp. (MPIC) and Harbour Centre Ports Terminal Inc. (HCPTI), after bagging the P14.5-billion contract to modernize and operate North Harbor.

Earlier this year, MNHPI delivered 159 units of medium to heavy equipment as part of its commitment to the process.

Under the agreement, MNHPI agreed to advance the payment of past service benefits to port workers to be absorbed equivalent to 26 days for every year of service. For those employed prior to Jan. 1, 2000, computation of payment shall be reckoned from Jan. 1, 2000. Meanwhile, for those employed after said date, computation shall be reckoned from their actual date of employment. 

MNHPI has likewise agreed to extend financial assistance to bonafide porters at Manila North Harbor.

Sources privy to the negotiations revealed that MNHPI has set aside more than P100 million to pay for past service benefits of affected workers.

The contract between the Philippine Ports Authority (PPA) and MNHPI provides that subject to the consent of the port labor/workers at the Manila North Harbor and/or their respective unions, MNHPI shall absorb the existing port labor as may be determined by the joint committee, taking into consideration the list of port labor/workers set out in the contract documents. The absorbed employees shall be considered as new hires and their employment with MNHPI shall be governed by new employment contracts.

Pursuant to the MOA, members of the APTWP-NH have agreed to be absorbed to the operations of MNHPI at North Harbor, thus paving the way for a smooth, orderly and peaceful transition of operations.

Last Nov. 19, the PPA awarded to MNHPI the contract to develop, manage, operate and maintain the North Harbor. The joint venture passed all the criteria of the two-year rigorous pre-qualification and bid process mandated by the PPA’s terms of reference.

“The government will not spend a single centavo for the project, yet this will result to the emergence of a new and improved image of Manila and the Philippines. This is first and foremost a victory for the Filipino people,” Romero earlier said.

Officials emphasized that the modernization of the port into a world-class facility would not only boost intra-regional trade in the county but would also attract visitors from other countries in the coming years.

Once modernization and rehabilitation is completed, MNHPI vowed to develop North Harbor as the center of trade and commerce.

They add that the modernization of the decrepit facilities of North Harbor is without cost to the government and the new facilities would revert back to the PPA once its contract with MNHPI expires.

As agreed, the PPA would also retain its sovereign right to regulate the fees and charges at the piers.

The project will raise more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates by an average of 10 -15 percent.

Aside from the absorption of existing port workers, MNHPI is set to hire an additional 5,000 to 10,000 workers for the project. “Jobs will be generated directly and indirectly by the ambitious construction and modern operations entailed in the project. The grief-stricken Tondo area is also set to be revitalized with the modernized port,” MNHPI officials added.