All’s Not Well with Danding’s Workers
San Miguel workers score systematic trade union repression

The demolition of workers rights in San Miguel Corporation is as systematic as its production process.  This began in the mid-1980s, when SMC under the leadership of chair Eduardo “Danding” Cojuanco, designed a long-range plan to streamline its workforce.  

BY DABET CASTAŃEDA
Bulatlat.com  

Restive workers from different San Miguel subsidiaries hold protest at the foot of of Mendiola Bridge               

 Photo courtesy of Ang Manggagawa

Using the Japanese management system isekawa, SMC tried to condition the minds of its workers through quality consciousness seminars that only boasted of the magnificent quality of SMC products but considered grievances, salaries and wages as non-negotiable.

In 1987, the perfect attendance scheme was introduced in SMC as an incentive to its workers.  Promptness is the key as employees with no absence or record of tardiness collect points and win awards. Home appliances are the usual while the grand price includes a trip to Baguio with their spouses. 

With the workers’ measly pay and the high cost of living, it was a perfect scheme to win the hearts and minds of SMC workers and their families.  But apart from the obvious, this ploy is used to keep the workers busy with work and away from union activities.

In 1989, SMC had 39,000 workers. After a decade, this number drastically went down to 15,000. This was the result of regular workers’ dismissal, merging of job items and other schemes to undermine the workers’ unity and increase SMC’s profits.  From 10,000 union members in 1990, they are now only 4,000 spread in 22 local unions. 

A taste of the iron hands

Twenty-three years as a regular and senior employee of SMC, William Merene took the odds and stood for what was correct – in the early 1980s, he joined the Ilaw at Buklod ng Manggagawa (IBM), the workers union of SMC.  Ka Mere to colleagues and comrades, he now serves as the president of IBM which became affiliated with the militant Kilusang Mayo Uno (KMU) in 1987. 

IBM-KMU is the alliance of unions in SMC subsidiaries, among them Cosmos Bottling Corporation, La Tondeńa Distilleries Inc., Campo Carne, Magnolia, Coca Cola, and Monterey Foods.

It was in August of the same year when IBM-KMU joined a welga ng bayan and won a nationwide P10 increase across the board.  Union members at this time got the taste of the company’s iron hands as those who joined the nationwide strike faced a preventive suspension case before the SMC administration.  While the case was being heard, they were grounded from entering the production area. And because the company holds a “no work, no pay” policy, union members paid dearly for fighting for their rights. 

But as Ka Mere would remember, “we didn’t take that sitting down.”  IBM-KMU called for a one-day strike in November that resulted in the suspension of the administrative investigation.  “We thought it was the only way to gain back our work and we did. Everything was back to normal,” says Ka Mere. 

Sabotage!

But what is normal?  Only in Jan. 2003, after the Cojuanco-led SMC acquired Cosmos Bottling Corporation, 117 out of 190 regular workers lost their jobs in a Cosmos Plant in Canlubang, Laguna. 

On Jan. 3, workers were told that the company would be upgrading the production process of the bottling plant.  Insisting on their right to know, the workers wanted everything clear as their jobs were on the line.  When will the upgrading start and when will it be done?  After the upgrading process, will we get our positions back?  “All that management could say was that they would be undergoing an evaluation. Why should they undergo such when they’ve been there for years?” asks Ka Mere.

But on Jan. 4, while discussions were at hand, the management terminated the contracts of casual workers.  However, it takes the entire number of the regular and casual workers to man the whole production and as a result, the process was affected. 

The workers’ union asked for another dialogue but this time, the management declined. This resulted in the stoppage of production and a case against the workers: sabotage!

Ridiculous as it was, the workers were the ones blamed and accused of sabotaging the company.  Management then arbitrarily replaced the 117 regular workers with newly-hired contractual workers. 

Devious maneuvers

In its negotiations with the Monterey union which started last year, the management presented a P95 counter proposal to the workers’ demand of P115. The union accepted the offer but in the next meeting, the management offer changed to P85. The union naturally refused to sign the agreement since the union members voted to agree to P95. In the next round, after the workers decided to accept the new offer, the union noticed the absence of the previously agreed non-retaliatory clause in the memorandum of agreement.

Throughout the negotiation, the management showed extreme deviousness and proved insincerity in the negotiations, workers said.

The same sly maneuvers were exhibited in the case of La Tondeńa, where management reportedly designated new union officers while CBA negotiations were ongoing. The union protested and filed a notice of strike. The department of labor then assumed jurisdiction over the case but even while the case was ongoing, the management filed cases against 60 union leaders.

“They want us out”

IBM leaders say the main thrust of the Cojuanco-led SMC is to throw them out of the bargaining table.  The attack is systematic, sometimes ridiculous but, most of the time, also traumatic to factory workers.

But why does the SMC management seem to be intensifying its campaign against IBM-KMU?  “If they destroy us now, it is perfect timing for the next collective bargaining agreement which is set next year,” replied Ka Mere.

He added that aside from strengthening their influence among union members and non-members (such as casual and contractual workers) nationwide, IBM-led unions in Metro Manila have historically set a standard in corporate-wide wage increases which mean big cuts in the company’s profits. 

Workers at war?

Indeed, SMC seems to be preparing for the big negotiation next year with its Greater Manila Area workers.  It appears to be attempting this early to strangle its opponent. 

Starting last April for example, the management has refused to turn over the workers’ union dues to IBM.  According to union officials, the company’s concerted efforts against IBM alone make it difficult to sustain union activities and defend it from company maneuvers undermining the workers’ unity. It is however doubly difficult to function without funds. 

The management has reportedly made it appear that some workers were asking for a refund of some fees given to IBM. The Department of Labor and Employment has ordered IBM to return some P5,500 to each of the claimants, which IBM has already done. 

The money is not the most important issue, say union officers.  IBM charged that SMC management is seeking to divide the workers by creating a conflict between the union and some of the workers.

War against terror

The union leaders are also connecting their plight with the U.S. war on terror.

“The present vicious attacks against IBM-KMU is SMC’s collaborative effort to fulfill the whims of US President George W. Bush when he declared war against terror after the 9-11 attack,” says Ka Mere.  President Gloria Macapagal-Arroyo has several times declared her all-out support to Bush, including when she announced, “we will also go after those workers who are terrorizing the factories.” 

“Those statements could not be referring to anyone but us (militant workers).  They couldn’t possibly be directed against TUCP (Trade Union of the Philippines), which adheres to yellow unionism,” Ke Mere said.

“There is clear connivance between the imperialist power, the Philippine puppet government, and big business, which include Danding Cojuanco as chairperson and chief executive officer of SMC,” adds Ka Mere.

Not over

But according to IBM, the fight is not over. “With the workers’ continued strength and support, we see a good chance at the negotiating table next year. We are ready for them and we will assert our rights as we have done in the past,” Ka Mere says in parting.  Bulatlat.com

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