LABOR WATCH

Workers Face Mass Lay-Offs as Lucio Tan Takeover 
of VMC Looms

Filipino-Chinese taipan Lucio Tan, allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company in Negros. As a result, 253 FSD-VMC security guards were already relieved and more retrenchments are forthcoming.

By Karl G. Ombion
Bulatlat

BACOLOD CITY – Filipino-Chinese taipan Lucio Tan, owner of Philippine Airlines, Asia Brewery, Allied Bank, and Fortune Tobacco, among others, and allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company.

But Tan’s takeover of the sugar milling company, located in Victorias City some 40 kms north of Bacolod, portends of things to come for its employees. At least 253 members of FSD, the company’s security agency, were already relieved and more retrenchments are coming.

Sources from the union and from the group of former VMC President and CEO Arthur Aguilar last week said that Tan had reportedly infused more than P300 million into the company through the Philippine National Bank (PNB). The amount was a loan purportedly to ensure the firm’s financial stability. PNB, which Tan heads as chairman, is among the leading creditor-banks of VMC.

While the possibility of a takeover by Tan still looms, two of his representatives in the board of directors, Mariano Tan, his brother, and Wilson Young now practically call the shots in the VMC even as another representative of a creditor-bank, Omar Mieir, sits as the chairman of the board.

Senior vice-president and VMC Officer-in-charge Abelardo Bugay, who now manages VMC takes orders from the taipan, his brother and Young. Likewise, the chiefs of various departments and divisions in VMC have to comply with Tan’s orders.

Efren Lagdamen, VMC new chief security officer, has also been quoted by union sources as saying that Tan cannot just be ignored because he is the “biggest contributor” to the campaign kitty of Mrs. Macapagal-Arroyo during the last election campaign.

First casualties

Upon his takeover as VMC security chief Lagdamen ordered the relief of 253 security guards, believed to be loyal to former VMC President and CEO Arthur Aguilar, and replaced them.

Ernesto Laserna Jr., supervisor of FSD-VMC detachment, and spokesperson of the relieved security guards said, in a press conference Sept. 10 at the office of the National Federation of Sugar Workers-Kilusang Mayo Uno (NFSW-KMU), that 120 out of the 253 assigned with the VMC have already received their relief orders from FSD Assistant Manager Ma. Jose De la Peña last Sept. 1.

Laserna said that they were surprised by their relief because the contract with FSD was renewed by VMC last June 30, 2004.  At the same time, a new security agency was also hired.

“Without giving any reason, we were asked to report to our main office in Bacolod City”, Laserna added.

Albert Agudillo, another security guard slammed the relief saying “Amo ni nga krisis, ginkakasan pa gid kami sa amon solo nga pangabuhian” (We are already in crisis, still they removed us from our only job).  His companion Romeo Panisales added “Mayo man amon performance, pero ngaa islan pa kami sg mga bag-ohanon kag indi taga-Victorias?” (Our performance is good so why replace us with new ones who are not from Victorias?).

Laserna said that “the management could have been more considerate in its decision especially that many of the relieved security guards are from Victorias and are without any other means of livelihood”.

The relieved security guards have been with the FSD-VMC detachment since March 7, 2001. Majority of them are from Victorias and neighboring towns.

FSD is a big national security agency with more than a thousand security guards deployed under its branches in Negros, Iloilo City, Roxas City, Metro Cebu and Metro Manila.

More retrenchments loom

Guillermo Barreta, KMU Negros spokesperson, slammed the relief of the FSD-VMC security guards as part of the grand scheme of Tan to consolidate his hold over Asia’s biggest sugar milling company.

Barreta revealed that the VMC workforce, currently numbering a mere 2,700 from a peak of more than 6,000, could be further reduced. Bugay has already issued a memorandum regarding the possible downsizing of the VMC workforce.

Bugay issued another memorandum early this week saying that no salary increase and other benefits would be provided the workers of the VMC Industrial Workers Association (VIWA) in the coming Collective Bargaining Agreement negotiations scheduled soon.

Ironically, Barreta warned, the new security force “may also be used against the expected surge of worker’s protests against the forthcoming mass retrenchments and the new labor flexibility schemes in the company.” Bulatlat

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