OceanaGold lays off 80% of workforce
KASIBU, Nueva Vizcaya: The nonrenewal of OceanaGold ( Philippines) Inc.’s Financial or Technical Assistance Agreement (FTAA) with the local government has led to the layoff of 80 percent of its workforce or 620 workers in the suspended mining operations in the Didipio Mines.
Recognizing that the coronavirus pandemic has a significant impact on the employment landscape in the country, OceanaGold prepared its workforce for the potential termination two weeks ahead of the notification period required by Philippine labor laws.
“[ I] t is unfortunate that the authority granted to the company by the national government to continue operating pending grant of renewal of the Financial or Technical Assistance Agreement is not being recognized by local government units,” read OceanaGold’s statement to employees, adding that the coronavirus pandemic has further complicated the situation.
The mining firm had set the initial permanent separation of its affected workers effective October 13. It said it could no longer hold the entire workforce after over a year of nonoperations.
In July 2019, OceanaGold was constrained to halt the operations of its Didipio Mine when a blockade was set up, following a stoppage order from the local government preventing the entry of supplies and external transport of mineral products.
The company has maintained that the national government has regulatory authority over the Didipio Mine.
The enforced lockdowns because of the pandemic also forced the company to temporarily lay off its first batch of workers on April 15.
David Way, OceanaGold general manager, noted that while there had been no mining operation and commercial activities for around 10 months, the company held on to the entire workforce for as long as it could.
“[T]he continuing restraints to the operation and the economic impacts of the pandemic made it difficult for the company to keep all its employees. It is a painful decision. In as much as the company would like to retain everyone, our resources are no longer enough,” Way said in a statement.
He said the company has temporarily laid off 66 percent of its total workforce since the start of the Covid-19 lockdown in March and that nearing to six months after the initial temporary layoff of employees, the company now has to comply with the Philippine labor laws on the maximum period that employees may remain on temporary layoff status.
Most of the employees are residents of Nueva Vizcaya, Quirino and other neighboring provinces in north and central Luzon, he added.
“Meanwhile, local businesses expressed fear of the economic impacts of the impending closure of the Didipio mine. The mine generates an additional 3,000 indirect jobs through the co-operatives and projects supported by its Social Development and Management Program (SDMP).
Annually, OceanaGold spends around P100 million for its SDMP projects in its beneficiary communities and another P100 million for its corporate social responsibility projects.
Last week, 11 Kasibu-based businesses and cooperatives sought the help of President Rodrigo Duterte, through the local government units (LGUs) surrounding the mines to renew the FTAA of OceanaGold. In various resolutions to LGUs here, local cooperatives said the closure of the mines would ultimately raze to the ground the previously bustling economic activities around Didipio village.
“As a responsible resource developer, we know that our operation will be able to churn economic activity in the region and will enable us to help in the nation’s economic recovery. We will continue to work with the national government for our FTAA renewal,” Way said.