San Miguel Corp. ‘Massacres’ 

Thousands of Workers

Ever since Danding Cojuangco regained control of San Miguel Corp. two years ago, more than 6,000 workers have been fired. Despite Estrada’s ouster, the “massacre” continues. But the workers are now fighting back.

By D’JAY LAZARO

A “massacre of jobs.”

This was how William  Merene, president of the Ilaw Buklod Manggagawa sa  San Miguel Corp.  (IBM-SMC), described  the retrenchment of about 500 workers in San Miguel Corp. (SMC), the largest food conglomerate in the Philippines.

Merene disclosed that in mid-January this year, Eduardo “Danding” Cojuangco,  a crony of ousted president Joseph Estrada and SMC’s chief executive officer and board chairman, ordered the closure of the Magnolia Poultry Processing Plant  in Cabuyao, Laguna, rendering more than 200 workers jobless. (Cabuyao is about 50 kms south of Manila.)

Cojuangco likewise shut down the operation of SMC’s Coca- Cola plant in Calamba, also in Laguna, laying off more than 200 workers in the process. Merene said the Cojuangco-led management  justified the closures and retrenchments by saying the company has been losing money.

IBM-SMC officials, however, are claiming that the retrenchments were due to Cojuangco’s so-called three-pronged approach to streamline SMC’s workforce.  Since 1998, when Cojuangco took over as CEO and chairman, more than than 6,000  workers in Coca –Cola, Campo Carne and the SMC poultry division  were “illegally and unjustly” laid off.

The retrenchments took effect even as the SMC  generated  a net profit of P7.5 billion last year, an increase of 25 percent from 1999’s profit of P6.01 billion.

Records also show that the SMC’s consolidated net sales in 2000 reached P88.7 billion, representing a 17-percent increase from the 1999 sales totaling P75.6 billion. (SMC Posts P7.5 Billion In Net Recurring Profit For 2000 and San Miguel Corp. Profit Surges 25%.)

The firings also came after SMC reacquired Coca-Cola Bottlers Philippines Inc. (San Miguel To Acquire Majority Stake In Coca-Cola)

The union leaders said that  SMC even acquired last June J. Boag and Son Ltd., a leading brewer in Australia. That acquisition,  union leaders said, resulted in an increase in income of $21.7 million. (San Miguel International Beer Sales Hits Record)

This, in spite of the fact that domestic-beer sales declined  by three percent during the second half of 2000, largely due to declining consumer spending, the Mindanao conflict and weak farm incomes.

SMC food groups likewise posted revenues amounting to P17.6 billion -- higher by 12 percent compared to 1999’s P15.7 billion. The increase was attributed to improved poultry prices and higher demand for basic meats and feeds.  The company also expects more growth this year. (SMC Girds For Further Growth)

In light of these figures, Merene said he finds it unjust that Cojuangco pushed through with the termination of workers.

He fears that more than 1,200 regular workers and 1,300 contractual employees will lose their jobs in the coming months if Cojuangco remains as CEO and  chairman of the SMC.

The workers urged President Gloria Macapagal-Arroyo to declare as government-owned the 47-percent share in SMC which was acquired by Cojuangco through the coco-levy fund.

“Cojuangco used his stolen wealth from the farmers’ coco levy to wiggle his way into the SMC board. His friendship with ousted Estrada also bolstered his position and gave him the unjust license to manipulate the various businesses inside the company,” Merene said.

Barely a week after being sworn into office in 1998, Cojuangco took control of SMC, which, for some time, was the country’s second-largest employer, next only to the Philippine government.

Cojuangco has denied that Estrada had a hand in his comeback, insisting that the board members who allowed him back were all appointed by former President Fidel Ramos. He also has expressed his “concerns” for SMC’s workers. “To me, after the stockholders, the people I have to care for are employees. Nothing else comes next after that,” Cojuangco said in an interview with SMC’s magazine Kaunlaran. 

But Merene maintains that “the longer San Miguel stays  in the clutches of Cojuangco, the greater the  damage being wrought on the workers.” He added that “Cojuangco is a Shylock of a businessman and he lets nothing get in the way of profit, never mind if this results in the “massacre” of the company’s labor force, which will consequently have adverse affects on the economy.”

Merene accused Cojuangco of giving out positions and SMC sales offices to close friends “as though these were movie passes.” He said the SMC Cubao sales office was given to presidential mistress Laarni Enriquez’s father. The one in  Kalookan City was given to the Asistios, the clan of a crony of Estrada, while the sales office in Pasig was  given to the Eusebios, a political family also identified with Estrada.

Ramon Ang, the brother of gambling lord Charlie “Atong” Ang was assigned as vice-chairman for operations, Merene added.

Yolanda Ricarforte, Estrada’s “auditor” for jueteng money, was appointed director at Campo Carne, an SMC subsidiary, Merene said.

Merene said some 90 managerial officers were forced to avail of early retirement to accommodate these cronies and friends. 

IBM-SMC workers and the Kilusang Mayo Uno led protest rallies in Mendiola, Manila, near the presidential palace, and surrounded the SMC complex in Ortigas during an overnight protest vigil last February 15. The workers demanded the immediate ouster of Cojuangco from the SMC board. 

Merene said  more protest actions will be held this week.  #