LINGAYEN – Governor Victor Agbayani has sought President Gloria Macapagal-Arroyo’s intervention on the brewing controversy at the 1,200 megawatt Sual coal-fired power plant in Sual town where about 300 employees fear loss of employment in case the company is sold within the next few months.

Agbayani said the President’s “appropriate intervention” is crucial “to preserve industrial peace”.

In his November 20 letter to the President, Agbayani informed her about current developments stemming from the impending sale of the businesses of Mirant in the Philippines.

He mentioned in particular the brewing tension between the top management of Mirant Philippines Corporation and its employees at the Sual Power Plant, a vital installation in the country.

On October 20, representatives of the Sual Power Plant Station Employees, 260 of whom are Pangasinenses, filed a request with the Department of Labor and Employment for administrative intervention.

Without strong mediation and intervention, the exchange of legal arguments between management and employees may become a long and tedious process, Agbayani said.

The governor told the President of Mirant claim that it has included in the bidding terms, the condition that the buyer should retain the services of the employees and continue the implementation of existing company policies and practices.

However, lacking clear documentation of the claim, the employees contend that they do not have binding guarantees on the continuity of their employment after the sale;

Without a clear continuity of employment, the employees now seek clarification on their severance pay.

Employees assert that upon the sale of the business and the change of ownership, their employment with Mirant will be severed, thus giving them a right to separation pay from Mirant.

Employees also seek the assurance of no diminution of these benefits as determined based on previous company practice.

Management, on the other hand, contends that what is being sold are the shareholdings of  Mirant Asia Pacific Ltd. (MAPL), Hong Kong, the parent company of the corporations of Mirant in the Philippines, and that the sale will not affect the employment relationship between Mirant and its employees. This means that Mirant should not be liable to give separation payments to it employees.

Under the terms of the sale, the buyer will subsequently acquire rights and obligations with the National Power Corporation under the Energy Conservation Agreement (ECA). Mirant will in effect transfer to the buyer, rights to continue operating the business, along with its obligations, under the ECA.

Agbayani said “This vital role of Filipino employees in the success and profitability of Mirant should be recognized and justly rewarded with fair treatment through continuity of employment or just remuneration in terms of earned severance”.

“Our concern is for the employees to have some security of tenure of their services and employment,” Agbayani told the local media.–EVA

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