NLRC moves to settle complaint vs. VECO

The Regional Arbitration Board of the National Labor Relations Commission (NLRC) formally started a mandatory conference for a possible settlement of the case on illegal dismissal filed against the Visayan Electric Company by its 63 employees.

Labor Arbiter Julie Rendoque gave both parties time to settle the case during the mandatory conference that was reset to August 24.

The complainants were headed by Miguel Elumbaring, former VECO personnel manager, and Henry Tenefrancia, former supervisor of the firm's administration department. Elumbaring and Tenefrancia have worked for the company for the past 27 and 23 years respectively.

The complainants were terminated in 2004 after the Aboitiz group got hold of the majority share of the company and implemented the Voluntary Early Retirement Program (VERP) and Redundancy Program.

Avito Cahig, the complainants' counsel who was also terminated as legal counsel of VECO, asked the NLRC to order VECO to pay moral damages to the complainants "since it acted oppressively, willfully and in bad faith."

The complainants asked for their reinstatement without loss of their seniority rights and benefits. "And if the complainants decide not to be reinstated, VECO should pay them separation pay," Cahig said

Aside from this, the complainants also asked the NLRC to declare the firm's Redundancy Program and other quitclaims as invalid and null and void.

"What respondent paid by way of quitclaim were the benefits of complainants under the provision of the CBA (Collective Bargaining Agreement). But that was even less than what they are supposed to get. Respondent VECO should be ordered to pay the non-monetary benefits denied them until they reached the retirement age of sixty," Cahig said.

The Aboitiz family gained control of VECO from the Garcia, Escaño and Sala families.

Alfonso Aboitiz, VECO's chief operating officer, and Dennis Garcia, the firm's president, had offered the VERP to some employees.

Under the VERP proposal, those who have completed 30 years of continuous service will have retirement or separation benefits equivalent to a two-month salary for each year of service, and those with five to 29 years of service would receive one and a half month salary for each year of service.

But those who held the managerial and supervisory posts of the company did not avail the VERP, prompting Aboitiz to create a new management and technical team to take over the duties of the complainants.

According to Cahig, "for all intents and purposes, they (complainants) were constructively dismissed from work." - Ramil V. Ayuman/LPM