Labor secretary averts looming strike at Kepco

The secretary of labor has assumed jurisdiction over the ongoing labor dispute at Kepco-Salcon Power Corporation averting a planned strike by the employees union.

Secretary Bienvenido Laguesma, in an order dated March 7, 2023, has enjoined the members of Kepco Cebu Employees Association-Workers Solidarity Network from conducting labor strike and any act that may further exacerbate the situation.

Laguesma said that conciliation and mediation services shall be continuously pursued under the auspices of his office to completely exhaust remedies to arrive at a solution mutually acceptable to the both parties.

The Department of Labor and EmploymentLegal Service and the National Conciliation and Mediation Board were directed to conduct the initial conference on March 14, 2023 in Manila.

Both parties were directed to appear at the DOLE office in Manila for conference and subsequent conferences/ hearings which may thereafter be called for the purpose.

Article 278 of the Labor Code of the Philippines, as amended, confers upon the labor secretary the power to assume jurisdiction over a dispute in an industry indispensable to the national interest, or to certify the same to the National Labor Relations Commission for compulsory arbitration.

The law states that when this power is exercised, any impending strike or lockout is enjoined.

Laguesma said that the company is engaged in the business of power generation and the power sector as a whole is, by law, classified as an industry that serves public interest.

“Undeniably, critical in meeting the needs of citizenry, industries and the economy, the industry is both indispensable and essential to the national,” reads part of Laguesma’s order.

He said that his assuming jurisdiction over the labor dispute “will provide the parties an avenue to peacefully settle their differences without detriment to the larger public interest which they are committed to serve”.

KCEA-WSN president Pedie Belotendos said they were ready to stage a strike anytime after the mediation failed.

“The union is ready to strike anytime,” Belotendos said.

Dennis Derige, WSN federation officer, said they have mixed reactions on the labor secretary’s assuming jurisdiction of the problem.

“Mixed reaction mi kay dili mi makapahungaw sa among gibati pina-agi sa strike. Naguol mi kay ang among katungod pirmi na lang ma ing-ni. But although naguol mi, we are hopeful that through the DOLE secretary, magamit niya ang iyang power to settle the issue and to compel the management to follow unsay naa sa balaod,” Derige said.

KEPCO-Salcon Power Corporation supplies 206 megawatts of electricity to the Visayas grid, which serves the islands of Cebu and Bohol.

Any disruption in electricity supply and services in the grid, Laguesma added, which is certain to result from a work stoppage due to a strike, will adversely affect the needs of households and will have a wide-ranging effects on industries and institutions that are indispensable to the economy including telecommunications, water supply, hospitals, schools, banks and government hospitals.

“A disruption of electricity supply and services of such magnitude is in the public interest to prevent,” Laguesma said.

The union filed a notice of strike alleging that the company committed unfair labor practice, union busting, refusal to bargain, and gross violations of the Collective Bargaining Agreement consisting of the non-implementation of the union leave, calamity assistance and union security provisions.

A strike voting was subsequently conducted on February 27, 2023 wherein majority of the members voted yes to strike.