National Steel employees back Allengoal proposal

Trade and Industry Secretary Manuel Roxas II is being accused by union members of the National Steel Corp. (NSC) of delaying the reopening of the mothballed steel firm to the detriment of NSC workers.

According to Simplicio Villarta, president of the National Steel Labor Union (NSLU), Roxas has been feeding President Arroyo "incomplete, if not inaccurate information" about NSC.

Villarta claims that Roxas is refusing to accept a bid offered by Allengoal Steel Corp. to operate the plant for a fixed monthly rental plus a share of net profits.

Allengoal’s offer topped that of another company, Cathay Pacific Steel Corp.

Allengoal’s offer was for a monthly rental of P20.5 million and 40 percent of net profit.

The offer of Capasco was only a monthly rental of P20 million or 50 percent of the net profit, whichever was higher.

Allengoal’s offer was made in April 2000, while that of Capasco was made only in May this year.

Instead of accepting the bid offer, Villarta said, Roxas created an evaluation committee which only created another layer that has further delayed the reopening of the NSC plant in Davao.

Roxas, however, has been saying that he has been mediating with the Malaysian owners and local creditor banks about the fate of NSC.

It was only recently that Roxas supposedly got all parties to agree to accept offers to run the mothballed plant.

Villarta said that another date set for tender offers, scheduled for Sept. 21 this year, was also abandoned by the so-called evaluation committee. Villarta said that he would bring the NSC workers’ plight to the attention of President Arroyo when she visits Davao this month.

Villarta said, "we have no doubt that it is the President’s wish to have the plants up and running under the best terms we can obtain given the present conditions."

The NSC plant has been shut down since November 1999 and at the time of its closure had a workforce of 2,000 employees.

Villarta insists that the Allengoal’s offer is the only serious proposal on the table.