Good News
National Conciliation and Mediation Board
Regional Branch No. IV-A
17 February 2017

IMUS, CAVITE – “Faremo International, Inc. (Faremo) and its union agreed to resolve its dispute before the Regional Conciliation and Mediation Board IV-A with a settlement of P36,668,821.57 benefitting 748 workers,” NCMB Executive Director Shirley M. Pascual announced today, citing reports from RCMB IV-A Dir. Feliciano R. Orihuela, Jr.

Faremo International Inc. Association filed a Notice of Strike in October 2016 alleging unfair labor practice specifically the shutting down of company operations in bad faith.

FIIA also alleged that union members were denied alternate jobs because they were blacklisted from other garment factories within Cavite EPZA.
A total of 748 employees were affected by the closure of the company.
In the initial conference on 21 October 2016, Faremo manifested that its decision to shut down company operations and declare bankruptcy was due to the lack of demands or orders for production.

After several conciliation conferences, 694 of the 748 workers have already accepted their separation pay in the total amount of P32,164,371.57, leaving 54 others who were not yet paid.

FIIA demanded financial assistance amounting to P5 million on top of the separation pay to be paid out by the company.

Faremo, however, made a counter-offer of P1 million as financial assistance and offered 15 sewing machines as a means of livelihood for the displaced workers.
On 31 January 2017, after parties reconsidered their positions, Faremo and FIIA were able to reach an agreement.

Faremo agreed to pay financial assistance amounting to P2.5 million to the remaining 54 workers and committed to provide 15 sewing machines to the union.
Faremo also agreed to give priority to 54 workers in the event that Hansoll-Faremo Inc. will reopen for operation.

“We were honored to have DOLE Undersecretary Joel B. Maglunsod and PEZA Industrial Relations Chief Allan Allan P. Datahan during the last conciliation conference,” RCMB IV-A Director Feliciano R. Orihuela, Jr. said.

“I also commend the dedication of Concliator-Mediators Cynthia S. Foncardas and Rogen S. Cumba in facilitating the settlement of the Notice of Strike,” he added.
Faremo International, Inc. is a duly registered corporation engaged in the manufacturing of garments for brands such as JC Penny, GAP, and Khol.

Faremo International Inc. Association is an independent union representing the rank and file employees of the company and is represented by its union president, Jesse D. Autida.

END/ Gerard Peter C. Mariano edited by Gillian Pearl L. Guerrero