CAP
Employees Unite with Plan Holders, Prepare Protests
Plan holders are up in
arms over the failure of a pre-need company to give them their hard-earned
money. Surprisingly, the company's employees are now behind them in their
struggle.
BY MAUREEN A. HERMITANIO
Bulatlat
Employees of College Assurance Plan (CAP)
are preparing for protests over a series of retrenchments, violation of
their collective bargaining agreement (CBA) and the company’s refusal to
pay CAP plan holders’ claims.
“When the company’s liquidity problem
started to get worse last year, employees worked hard to protect the
interests of our fellow plan holders. As part of the company, we made
sacrifices for our customers and the company. But instead of helping us
survive this difficult situation, the management abandoned us. They took
away our jobs, deprived us of our source of income and refused to pay our
claims for the education of our children,” said Joel Domingo, president of
Solidarity in CAP-Independent Union (Sicap).
Majority of the 243 employees voted in
favor of a strike when their union, Sicap, held a strike vote last January
4. However, the Department of Labor and Employment issued an Assumption of
Jurisdiction Order last January 13 after the union filed a notice of
strike.
Even if Sicap condemned the DoLE order,
Labor Secretary Patricia Sto. Tomas certified the labor dispute between
CAP employees and management for compulsory arbitration to the National
Labor Relations Commission (NLRC). “We fear that our case against CAP
management will take longer to resolve because of DoLE’s interference in
the dispute,” he said.
Domingo said that despite this
development, sectors representing employees and plan holders are ready to
launch protests in the coming days to seek action from CAP management and
even the Arroyo administration.
According to Domingo, the employees
decided to hold protests against the series of retrenchments being
implemented under the company’s rehabilitation and cost-cutting program.
The company laid off more than 200 employees this month affecting CAP’s
Makati Head Office and branches in Tuguegarao, La Union, Pampanga, Cebu,
Iloilo, Tacloban, Davao and Cagayan de Oro.
CAP employees and plan holders raised
various issues against the management, particularly the aggravating
retrenchment scheme in the form of an early retirement program, voluntary
separation program and mass dismissal.
Evading responsibility
Domingo appealed for public support. He
said that majority of CAP employees are also education and pension plan
holders themselves. “We are now forging unity with other claimants’ groups
to press the CAP management to address their claims,” said Domingo
“Like CAP’s plan holders, we are suffering
due to the mismanagement of the company by a handful of individuals. Most
of us are plan holders, too. The company even owes us more,” he said.
Domingo revealed that the CAP management owes the employees over P600,000
($11,329.30, based on an exchange rate of P52.96 per US dollar) in unpaid
union dues and death contribution benefits.
Sicap also complained of the management’s
persistent attempts in union busting. Since last year, the union, in
consultation with all rank-and-file employees, collectively decided to
postpone negotiations for a new collective bargaining agreement (CBA) for
six months due to the company’s financial situation.
“But until now, the management refuses to
negotiate for our new CBA. It seems that the company took advantage of the
insolvency controversy to escape its responsibilities to us and all of
CAP’s plan holders,” Domingo said.
Employees bear the brunt
The largest pre-need company is facing its
worst financial problem, incurring a deficit amounting to around P17
billion ($320,996,978.85) in 2005. The union said that CAP maintains an
outstanding debt of P20 million ($377,643.50) per day in unpaid claims to
its plan holders alone.
“Things will get worse once the court
approves the petition for rehabilitation filed by CAP,” said Domingo.
Domingo said that after the company’s
liquidity problem leaked to the public in August last year, the CAP
management started to lay-off regular employees and has since utilized
early retirement and voluntary separation programs. In 2003, CAP employed
more than 700 employees nationwide. Now the number of employees was cut
down to 315.
“CAP employees were made to bear the
consequences of the company’s cost-cutting and rehabilitation program.
Likewise, claimants and plan holders are waiting in vain for the company
to pay for their education and pension plans while the company’s profits
are in safekeeping,” the labor leader said.
Sicap Secretary Michael Ophrecio said that
CAP’s dilemma is not isolated. He said it is likely that employees of
other pre-need firms will also face problems. He said that Prudential Life
and Platinum Plans are also working on cost-cutting measures. Bulatlat
BACK TO
TOP ■
PRINTER-FRIENDLY VERSION ■
COMMENT
© 2006 Bulatlat
■
Alipato Publications
Permission is granted to reprint or redistribute this article, provided
its author/s and Bulatlat are properly credited and notified.