Hanjin contractor assures separation pay for affected workers – DOLE

The Department of Labor and Employment (DOLE) on Tuesday said workers of Hanjin Heavy Industries to get separation benefits mandated under the Labor Code.

In a press briefing, Labor Secretary Silvestre Bello III said Subic Shipbuilder Corporation (Sushicor), Hanjin's general contractor in shipbuilding, has assured the Department of Labor and Employment (DOLE) that their workers will get separation pay equivalent to one month salary per year of service.

He said this will be facilitated by DOLE Region 3 to ensure that Sushicor and its sub-contractors will fulfill their obligations to the workers.

Bello also assured the would-be affected workers that they will assist them in re-employment to other related jobs such as in construction under the Build, Build, Build program of the government since Hanjin workers are highly skilled and in demand both here and abroad.

“But we prefer that they be employed here in the country first as we need their skills in welding, steel shipbuilding, construction, and plant services for the Build, Build, Build,” he said.

Bello added that he is set to meet with the Department of Trade and Industry, Department of Transportation, and the Department of Public Works and Highways for possible re-employment of Hanjin workers in various projects of the government.

But he said there is a need to profile the workers first to know their skills and preference of assistance.

The labor chief already tasked DOLE Region 3 and the Bureau of Local Employment to finish the profiling of the 3,800 workers until mid next week before he meets with the three agencies.

Aside from those mentioned, the DOLE's safety net and active labor market programs are also well in place should there be a need such as training, livelihood, and entrepreneurship, emergency employment, and other job transition support mechanisms.

“We assure the public that DOLE is quick to respond to the needs of the Hanjin workers and that we are one with the other government agencies in the fast recovery or rehabilitation of the company,” said Bello.

Bello met with labor officials Tuesday to discuss the possible impact to workers of Korean shipmaking Hanjin Heavy Industries and Construction Corporation’s declaration of bankruptcy.

Based on reports, among Hanjin’s financial woes that are at the core of its decision to apply for corporate rehabilitation at the Olongapo Regional Trial Court is its more than $400-million debt to lending local banks.

Due to this, some 3,000 employees of the firm are feared to be at risk of losing their jobs.

Meanwhile, opposition lawamakers asked the Duterte government to look after the welfare of 28,000 workers of Hanjin after it declared bankruptcy.

Akbayan party-list Rep. Tom Villarin, Albay Rep. Edcel Lagman, and Magdalo party-list Rep. Gary Alejano said the government should ensure that the rights and interests of the Hanjin workers are protected and promoted.

“The government should not neglect the situation of the workers,” Villarin said in a press conference as he called on the national government to “take over” the operations of Hanjin.

Lagman, for his part, reminded the government to ensure that “the unpaid wages and other monetary claims of Hanjin workers are given first priority” as provided for under the law.

Villarin said Hanjin cannot use bankruptcy as an excuse to leave some 28,000 workers in limbo.

Citing the reports of the labor groups, as of December 2018, about 7,000 workers from Hanjin have already been laid off. (With a report from Charissa L. Atienza)