KMU slams Aquino gov’t’s failure to protect workers from illegal closures

Citing the recent Social Weather Stations survey on unemployment, labor center Kilusang Mayo Uno slammed the Aquino government for failing to protect workers from illegal closures, saying the government’s pro-business policy allows companies to close down in disregard even of existing laws.

According to the SWS survey which was released one week ago, the 11.3 million Filipinos who are out of work include those who resigned from work or were retrenched and those who are seeking work for the first time.

“The latest SWS survey show not only that the Aquino government does not have a comprehensive policy of generating jobs, it also shows that the government cannot protect workers from being retrenched from their jobs. The Aquino government is so pro-business, it cannot even stop capitalists from unilaterally declaring that they will close down production in violation of existing laws,” said Leandro “Doods” Gerodias, KMU deputy-secretary-general.

“Workers know for a fact that many companies invoke bankruptcy to close down production only to transfer to a new location and employ contractual workers – yet the government has failed to punish any capitalist guilty of this offense. The Aquino government is promoting an ‘anything goes’ atmosphere for capitalists so the latter can increase their profits at the expense of workers,” he added.

KMU cited the case of Mustad Terminal Tackle Inc., a Norwegian-owned multinational company which produces fishing hooks and other fishing equipment in Novaliches, Quezon City, which illegally shut down and retrenched around 200 workers and employees last May 24.

“In violation of the Labor Code provision that a company should issue a notice 30 days before closing down, Mustad informed its workers a day before its closure. Our talks with the Mustad management reveal that it has been planning the closure for months, yet the workers only knew of the closure one day before it was implemented,” Gerodias said.

“Because of the company’s swift and illegal closure, Mustad workers cannot help but think that the company’s plan is to switch to a new location, employ contractual workers, and do away with its present regular and unionized workforce. Mustad is citing bankruptcy as reason for closing down, yet workers know that production has continued at a steady pace for the past years,” he added.

“The situation where companies can swiftly and illegally close shop is a result of the Aquino government’s all-out pro-capitalist policy of attracting investors by disregarding workers’ rights. This has resulted not only in greater unemployment but also an attack on workers’ right to form union and to have job security,” Gerodias said.