Monday, March 3, 2008

[WAC Archives] Factsheet NMCW No. 02 2000

Nagkakaisang Manggagawa ng Chong Won- Independent
(United Workers of Chong Won)
NMCW Factsheet
Updated as of September 22, 2006

On September 19, a dialogue was held regarding the union officer's demand to begin negotiation for their CBA and reinstatement of two of their officers who are illegally terminated from their work. The management's legal counsel Omar Francisco and officers from the Philippine Economic Zone Authority (PEZA), regional office of the National Conciliation and Mediation Board (NCMB IV-A) were present during the dialogue.

The union's demand, however, were not resolved during the dialogue. Once again, the management's legal counsel insisted it could not begin negotiation for the CBA until the pending appeals on the matter is resolved by the Court of Appeals. The management likewise refused to reinstate union officers Monina Eugenio and Sellwyn Simpan.

Instead of addressing the workers' grievances--in particular to begin negotiation for CBA, the PEZA officers wanted the union officers to removed their makeshift tents built in front of the factory. It insisted that makeshift tents are unpleasant and discouraging for investors, and discourages job applicants. The union officers, however, defied PEZA's orders to remove their makeshift tents until their demands are met and that it is their right. The union had already filed notice of strike (NOS) therefore setting-up of picket line was legal.

On September 20, another dialogue with the union officers and the management was held inside the management's office. A representative from Wal-Mart in the Philippines, Edwina Reunilla, and their auditor James Cabrera, attended the said dialogue. Once again, the unions' demands were not adequately addressed. Instead of effectively intervening into the conflict by way of encouraging the management to begin negotiation with the union, Reunilla washes off responsibility of her company with the ongoing conflict. She insisted that since Wal-Mart is not directly negotiating with Chong Won Fashion, Inc. for their product orders but another trading company One-Step-Up, they have no jurisdiction nor responsibility to intervene in the conflict. Wal-Mart is the biggest buyer of the factory. They buy products from the factory through a trading company contracting the factory.

Instead, Reunilla threatens Wal-Mart could pull out their orders from the factory if the conflict is not resolve and for not complying their company's requirement regarding the "standards for suppliers". Such pronouncement by Reunilla has since been use by the management against the union to discourage them from pursuing their demands. On September 19, the management distributed a letter for workers to sign address to Cecilia Velena, the economic zone administrator. The said letter condemns the unions for going on protest.

It is reported that some of the workers were forced to sign the document while others were threatened that they be terminated from work should they refused to sign. The said complaint letter was seeking Velena's intervention into the labor conflict.

Although Reunilla had given instructions during her visit at the factory to the company's president, Yong Ryul Kim, that the management should review the demands of the union under the CBA for them to consider what is acceptable to them, and that those demands they opposed would likewise be raised for further negotiations. It was found out later, however, these instructions by Reunilla's were not given consideration by the management. Kim too was angered when one of the dismissed workers, Monina Eugenio, was able to enter inside the factory's premises. He immediately ordered replacement of four of their security guards on duty over suspicions of colluding with the union members.

Not only Reunilla tried to exonerate Wal-Mart's responsibility into the conflict, she was also reported to have given a misleading and unsolicited comments that the picket line the union members built in front of the factory was illegal. Her comments have not help resolve the conflict but rather discouraging the workers to push through with fighting for their rights. Given the comments she had said, workers have noticed her bias for the management, which is very unlikely for capital contractors.

When Reunilla contacted over the telephone a representative from the Workers' Assistance Center (WAC) after she made visits to the company, she had been confrontational instead of calmly and reasonably resolving the conflict. She was defensive of her actions and been trying to exonerate Wal-Mart's responsibility instead of dealing the conflict squarely. She likewise showed her unprofessional attitude by raising her voice at the WAC representative. The WAC has since been asking her for a personal dialogue but has since refused to do so.

When Kim summoned the union officers for a dialogue inside their office on September 21, once again he refused to discuss matters regarding CBA and instead urged the union to cooperate with them to help them pay the company's debts. Kim claimed the company is heavily indebted amounting to USD 700,000 but did not give any proof of document. He too said that the union's decision to go on strike does not help the company and the workers in general. He instead told the union officers he could just leave out of the country for South Korea once the company bankrupts and the workers may not be paid of their separation pays and benefits. Nothing was resolved during the dialogue.

Kim told the union officers to settle the conflict amicably with him for the good of the company and promised them more work for their employees in the future. He, however, did not discuss regarding the worker's demands for CBA negotiation and reinstatement of the two union officers.
There had been serious apprehensions given the management's verbal pronouncement that they are heavily indebted it would abscond once it closed down. The serious concerns now, are not only the management's refusal to begin negotiation with the union members but also possibilities it would abscond financial responsibilities from the workers once it closed down. Absconding financial obligations by bankrupt factories has since been the practice of the Korean factories. Wal-Mart could be held responsible, as a principal contractor, should the company abscond should it closed down due to bankruptcy and their failure to effectively intervene into the conflict.

On September 22, Reunilla spoke to Flory Arevalo, the union's secretary over telephone to follow up the result of the unions' dialogue with the management. Despite the unions repeated requests for Wal-Mart representative for a dialogue with her and meet her in person, she has showed reluctance insisting that she needs approval from their head office in the US before she could meet with the union members. She even said that meeting with union members is "no longer [Wal-Mart's] business" but they still are willing to intervene within their capacity.

Reunilla once again washes off responsibility by Wal-Mart on the labor conflict considering that they are not the ones who is directly dealing with the factory. She even blamed the unions for dragging Wal-Mart into the labor conflict even though the labor conflict is no longer their business at all. She, however, promised she would try to speak with the company's president again to reiterate the unions' demands to begin the negotiation for CBA. All this, however, has yet to be materialized.

Reunilla likewise retracted her earlier pronouncement that Wal-Mart may pullout their orders from the factory should it fail to settle the labor conflict. It can be recalled that Reunilla's pronouncement about possibilities of Wal-Mart pulling out orders was exploited by the management and had been used to attack the union. The management has threatened the workers they would loss job once Wal-Mart pulled out orders. The union's position is for Wal-Mart to effectively intervene to resolve the conflict by pressuring the company aside from looking into whether or not factory's passed requirement as standard for suppliers.

Prepared by:
Research, Documentation, Information anf Publication
Workers' Assistance Center Inc. (WAC)
To read the previous fact sheet, visit;

Chong Won Fashion Inc. (CWFI)
To go back, click the link below:

http://www.wacphilippines.com/