The Lapanday Workers Union (LWU-independent) will receive P1.9 million in monetary benefits from the recently concluded Collective Bargaining Agreement (CBA) between the union and Lapanday Foods Corporation despite negotiations being stalled due to the COVID-19 Pandemic. 

Regional Conciliation and Mediation Branch-XI OIC- Director Aerrine Marie R. Reyes said the signing of the CBA was brought by the successful settlement of the Notice of Strike filed by the union against management. 

“The parties agreed to settle the issues amicably despite conducting the conferences under abnormal conditions due to the COVID-19 pandemic,” Reyes added citing reports from Conciliator-Mediator Rhium Truce C. Salvador. 

On 05 February 2020, the union filed a Notice of Strike alleging bargaining deadlock and unfair labor practice specifically union busting, illegal dismissal of union members, and diminution of wages. 

Parties failed to agree on the economic provisions of the CBA specifically wage increase, vacation leave, sick leave, retirement benefits and voluntary resignation.

On 21 February 2020 the union reduced their proposal on wage increase to explore options and possible areas of agreement in order to encourage the management to continue with conciliation-mediation.

The union conducted a strike vote balloting on 27 February 2020 to show the management that the majority of the union membership is united in their stand to conduct an actual strike if parties failed to forge an agreement. 

“The result of the strike vote balloting shows that 158 members out of the 267 qualified members voted in favor in the conduct of strike,” Reyes said. 

With the submission of the strike vote result to the Regional Branch on 03 March 2020, the counting of the strike ban period commenced to expire on 10 March 2020. 

The Branch conducted several conciliation conferences to encourage parties to negotiate their proposals before the end of the strike ban period.  

With the priorities of the National Government shifting from building the economy to curbing the transmission of the COVID-19 virus with the  declaration of the Enhanced Community Quarantine in Metro Manila and the rest of Luzon, the parties were informed by RCMB XI of the suspension of scheduled conciliation proceedings as a general precaution taken by the Department of Labor and Employment to ensure the safety of the clients and its personnel. 

“The 18 March 2020 conference was the last face to face conference that was conducted by the Branch with both parties, since the local government likewise imposed community quarantine in the Region,” Reyes said. 

The issuance of Department Order No. 213 of the DOLE on 05 May 2020 further suspends prescription of actions and reglementary periods to file pleadings, motions and other documents pending before the DOLE and its agencies. 

“It has already been two months since the last meeting and the parties are growing impatient that they have suggested continuing negotiations through video conference,” Reyes said. 

“The NCMB has been preparing for the conduct of webinars through video conferencing application Zoom since April and we opted to use the platform to conduct the hearing,” she added. 

On 09 July 2020, the RCMB-XI conducted an online conciliation conference through Zoom where the union made their final offer. 

On 21 July 2020, the parties agreed to amicably settle the notice of strike, effectively concluding negotiations between Lapanday Foods Corporation and LWU- Independent. 

Parties agreed to a wage increase of P5/ day without crediting in the second year of the CBA and another P5/ day without crediting in the third year of the CBA. 

They also agreed on 11 days’ vacation leaves with 10 days convertible to cash in the second year and 12 days’ vacation leave with 10 days convertible to cash in the third year. 

They also stipulated that members shall enjoy 12 days of sick leave credits with 10 days convertible to cash in the second year and third year of the agreement. 

Aside from the economic benefits, management agreed to conduct a time-and-motion study at the plant to determine the fair wage rate of the members of the union. 

The estimated economic package of P1,934,012.00 includes a livelihood grant from the Department of Labor and Employment.  

Management agreed that issues that were not agreed upon may be raised by the union at a proper venue. 

Lapanday Foods Corporation, a banana plantation and exporting company, is located in Maryknoll Drive Bo. Pampanga, Lanang, Davao City. The company has 290 employees and is headed by Chief Executive Officer Rica P. Lorenzo. 

Lapanday Workers Union (LWU-Independent) is a legitimate labor organization recognized and duly registered with the Department of Labor and Employment. It has a total union membership of 267 employees and is headed by Union President Rey S. Manguilimutan. 

END/ Gillian Pearl L. Guerrero with reports from Gary Bonghanoy