Napocor to lay off half its workforce

MANILA, Philippines - State-run National Power Corp. (Napocor) will undergo a massive reorganization program involving over half of its workforce, a top official of the power firm said.

Napocor vice president for human resource, administration and finance Edmund Anguluan told reporters that the company will reduce the number of its workforce by more than 50 percent.

“We are now in the process of reorganizing our workforce that would cut the employment level by up to 51 percent,” he said.

“By June 23, we will present the reorganization plan to our board.

This will affect more than 500 employees,” he said.

But Anguluan pointed out that prior to the reorganization, Napocor had already implemented several training programs for the affected employees.

“We also entered into arrangements with some private companies to absorb the would-be displaced Napocor employees,” he added.

“We also have our training institute – our training department had been very busy for the past days to ready our people for this massive reorganization.”

Energy Secretary Jose Ibazeta, for his part, confirmed the massive Napocor lay offs.

“I look at it very simply. In 2006 before I came in, I believe they had over 6,000 employees and at that time they had 89 percent of their grid assets. We have sold 98 percent (of the assets) and still have the same number of workforce. So, somebody has to make a decision. And that’s the government. I think they should have established work programs, career development and lookied for opportunities elsewhere. I think that should have been done and if not, it should be done,” he said.

Over the past years, Napocor management had been undertaking an organizational and employees’ empowerment change program.

Napocor president Froilan Tampinco said the program basically aims to address the impact the reforms and developments have on the corporation, especially with the impending shift from main grid power generation business to small islands and off-grid generation business.

Tampinco said the program likewise takes off and supports

the objectives of a previously-adopted program which aims to create a more sustainable and stable Napocor through the optimal

use of corporate resources and creation of new businesses.

“The objective of the program, in broad terms, is to come up with action plans that will help Napocor in addressing its new mandates under the Electric Power Industry Reform Act. We have almost

73 years of expertise in the power industry. No other power generation can claim otherwise. With that is the prestige of being an industry leader. Even if Napocor is out of the main grid power generation business, I am sure that we can still make a mark in

the industry because of our legacy,” Tampinco said.

“What we need are new ideas, or even old ones with a new twist. We have to think outside the usual box. We have to innovate,” he said.

Based on the EPIRA, Napocor’s mandate is now limited to managing the small power utilities group operations after it sold most of its assets.