MANILA, Philippines — The Department of Labor and Employment (DOLE) has dismissed the charges filed by an employees’ union against a power cooperative in Negros Occidental.
The charges stemmed from a joint venture agreement (JVA) entered into by the Central Negros Electric Cooperative (Ceneco) with a private company.
The Ceneco Union of Rational Employees claimed the agreement violated its members’ right to security of tenure as this would result in termination.
In an order dated May 3, Labor Secretary Bienvenido Laguesma said the JVA did not violate the right of the union members to security of tenure.
The union argued that since the National Electrification Administration (NEA) did not declare Ceneco as an ailing power cooperative, there was no need for the company to enter into a JVA.
Laguesma said by entering into a JVA, the Ceneco management decided to cease operation and started to dispose of or transfer its assets to its joint venture partner Negros Electric and Power Corp., in accordance with the law and under the authority and supervision of the NEA.
The DOLE said the execution of the JVA did not immediately terminate the employment of Ceneco employees.
“It is only after the transfer would have taken effect that Ceneco employees, including union members will be terminated,” Laguesma said.
He said Ceneco did not commit any act of termination that supports allegations that the right of union members was violated.