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Freeman Cebu Business

Sabotage: Labor unions’ main weapon?

FULL DISCLOSURE - Fidel O. Abalos - The Freeman

Again, the Department of Labor and Employment (DOLE) intervened anew and averted the planned strike of the rank and file and supervisors unions of KEPCO-Salcon Power Corporation.  As a major generator (KEPCO) of electricity in Central Visayas, such intervention was expected and necessary.

Simply put, if the energy supply is crippled, the economy in the Central Visayas suffers. Unfortunately though, such intervention will only make the unions a lot bolder.   Needless to say, they (the unions) were able to find a constant option (to go on strike) and transform it into an effective tool-sabotage.

Moreover, they also threatened to hold protests at the hotels where the Korean delegates of the Asia Pacific Economic Cooperation (APEC) are billeted.  Certainly, they are trying to pressure KEPCO to yield to their demands (salary increases and reinstatement of their union president) or get the ire of their country’s dignitaries.  An option extortionists love to do.

Indeed, some companies’ labor force are not organized or unionized.  Others do have the so called “company unions”. The rest have labor unions affiliated with nationally dominant federations. Still, other employees or laborers, whether managerial or rank and file, simply opted to the more productive and mutually rewarding route-cooperatives.

Of these organizations, the affiliated ones (like that of KEPCO) have always been notoriously known to make unreasonable demands.  The fact is, every May 1st, when the entire country observes our fellow workers’ day, these federations will always try to portray an aura of unyielding resolve.  They will always make demands that are so unrealistic before the country’s Regional Tripartite Wages and Productivity Boards (RTWPBs).  As these are usually unrealistic, the demands are denied.  Consequently, they shall call for the abolition of the country’s RTWPBs.  Most of us, however, are in agreement that all these demands are clothed with so much hyperboles for these federations to stay relevant to their union dues-paying members.

So that, time and again, we’ve emphasized that we must take a look at wages in an all-encompassing perspective.  We all know that in more professionally managed companies, it is viewed positively as investment not cost.  To some cash-strapped institutions, it is something that they would like to control to survive.  To some miserly affluent companies or businessmen, however, it is something they’ve made their hapless employees continue to starve.

Clearly, in these three scenarios, employers differ in the ways they treat their employees and in their approaches in compensating them.  Some are too generous, a few are reasonable and others are just too stingy.   On the other hand, laborers and employees differ in many ways too.  Overly protected by our labor laws, even those with salaries three times higher than the established minimum wage are filing notices of strikes.  Yet, it is a fact too that despite receiving wages way below established floors from unreasonable employers, some laborers just grumble in the corner by their lonesome.  Obviously, they prefer to have little something than have nothing at all.  Indeed, there are varying approaches and these are either necessitated by business and economic conditions or just mere attitude.

However, while we’ve always been on these arguments daily, there is one very significant issue as far as unions are concern that is trivially set aside or has never been discussed in any forum.  That is, are union dues paid by the workers completely recorded in the books and its use fully accounted for? To this, the Labor Code is very clear.  Chapter II (Art. 241, nos. 8, 9 & 10) provides that “every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose”.  And that “the funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose”.

Moreover, it emphasizes that “every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization”.

More importantly, all these transactions shall be summarized in a financial report that shall be submitted not later than 30 days after year end to the Department of Labor and Employment (DOLE).

Knowing fully well that some huge labor groups have claimed millions in membership, we can easily surmise that they are collecting billions annually.  To illustrate, with say 1 million members at P100.00 per month, the union collects P100 million in monthly dues.  Therefore, annually, it collects P1.2 billion.  It’s a no brainer.  The question is, has the DOLE examined these financial reports and found collections and its use in order?  If not, then, it is about time that they should.

[email protected]

ACIRC

ASIA PACIFIC ECONOMIC COOPERATION

CENTRAL VISAYAS

DEPARTMENT OF LABOR AND EMPLOYMENT

LABOR

LABOR CODE

NBSP

REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDS

SALCON POWER CORPORATION

SHALL

UNIONS

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