News Release
National Conciliation and Mediation Board
1 September 2015

The labor dispute involving Lapanday Food Corp. – MCO Paligue Operations has been amicably settled following successful conciliation – mediation efforts of RCMB XI, OIC Executive Director Shirley M. Pascual of the National Conciliation and Mediation Board said today. 

Pascual, in a report to Labor Secretary Rosalinda Dimapilis-Baldoz, said the dispute was settled on July 20, 2015, after the parties agreed to resume their CBA negotiations at the plant-level.

The union, Lapanday Workers Union (LWU) filed a preventive mediation against the company before the Davao branch office of the NCMB on June 3, 2015, invoking bargaining deadlock and unfair labor practice (ULP).

“Plant-level negotiations were stalled on May 27, 2015 due to the wide disparity in the parties’ positions on 22 economic provisions,” Pascual said, quoting RCMB XI OIC-Director Ma. Theresa Francisco.

The union also cited bargaining in bad faith, alleging the company of intentionally delaying the conclusion of the CBA to deny the members of the 6-month retroactivity. The last CBA expired on April 30, 2014.

“The union granted management’s appeal to close the case and discuss the deadlocked issues back at the plant level,” Pascual added, quoting Francisco’s report.

Pascual commended Francisco’s resourcefulness in preventing the case from maturing into a more serious labor dispute, ensuring the preservation of industrial peace in the company.

LWU, an independent union, represents 383 members for collective bargaining purposes. It is headed by Mr. Rey Manguilimotan, the union president.

Lapanday Food Corporation – MCO Paligue Operations, is an integrated grower, packer, and shipper of Cavendish bananas. Located at Paligue, Hagonoy, Davao del Sur, it employs more or less 1,000 workers.

END/ Dennis M. Galorio, LIO, RCMB XI