Effect given to the recommendations of the committee and the Governing Body - Report No 392, October 2020

Case No 2652 (Philippines) - Complaint date: 12-MAY-08 - Follow-up

Effect given to the recommendations of the committee and the Governing Body

1. 141. The Committee last examined this case at its October 2015 meeting [see 376th Report, paras 103–111]. The present case concerns the alleged failure of the Government to secure the effective observance of Conventions Nos 87 and 98, with respect to several allegations of infringements of the rights to organize and collective bargaining on the part of a vehicle-producing corporation (hereinafter “the enterprise”), including mass dismissal of over 230 workers following their participation in union activities and strike action. During the last examination of the case, the Committee welcomed the Government’s out-of-the-box settlement initiative to set up a livelihood project equally financed by the Government and the enterprise that would benefit all dismissed workers and expected the Government to conduct an expeditious investigation into the allegations of harassment, intimidation and threats against Ed Cubelo, President of the enterprise Association (TMPCWA).
2. 142. The complainant provides additional information in communications dated 10 August 2016, 12 May 2017, 23 October 2019 and 10 January 2020. It indicates that the Department of Labor and Employment (DOLE) made serious and genuine efforts to reach out to the enterprise, including by facilitating meetings between the parties and repeated correspondence with senior management of both the enterprise and its parent company. The complainant also provides detailed information on actions taken, together with its support group in Japan, to seek settlement and to put pressure on the enterprise, including correspondence with senior management of the enterprise and its parent company, numerous protest actions and other campaigns. Nevertheless, the enterprise did not show any willingness to settle the case and maintains its stance that it has no obligation towards the dismissed workers. The complainant also considers that the livelihood project, to which the enterprise was previously open, does not constitute sufficient compensation for the mass dismissals and should rather be understood as a project to avoid absolute poverty of the dismissed workers. Furthermore, following the worsening of the political situation in the country in 2019, the enterprise resumed its union-busting policy and the DOLE, despite continued efforts to seek a solution to the case, has changed its stance towards the complainant, including by withdrawing the educational assistance for displaced workers and their dependants granted in 2018.
3. 143. In its latest communications, the complainant denounces continued union harassment in the country, including a house search of the TMPCWA assistant treasurer, Ricky Chavez. The complainant also denounces the adoption of Executive Order No. 70 pertaining to the creation of a national task force to end local communist armed conflict and directing the adoption of a national peace framework to address the root causes of insurgencies, internal disturbances, tensions and other armed conflicts and threats in identified areas. It alleges that the Executive Order adopts an anti-terrorism and insurgency approach and its purpose is to perpetuate attacks against legal mass organizations and their leaders, including trade unions and labour activists. In particular, the complainant alleges that it is used to “legalize” massive arrests of leaders, organizers and workers and points to the arrest and detention of 62 activists in October 2019, as well as the raiding of organizations’ offices.
4. 144. The Government provides observations in communications dated 2 November 2016 and 1 October 2019. It reiterates information provided previously, indicating that the remaining issue concerns the complainant’s claim for reinstatement or payment of adequate compensation to approximately 100 workers who had not previously accepted the compensation package offered by the enterprise. It asserts that through the DOLE it continuously engaged with both the union and the enterprise to search for an equitable and mutually satisfactory solution to the current dispute, pursuant to the Committee’s October 2015 recommendations. While the enterprise has been firm that reinstatement is not possible since the Supreme Court had ruled with finality on the validity of the dismissal and non-entitlement to severance pay of the dismissed workers, it remains open to extending financial assistance to the 75 dismissed workers who have not yet claimed it and states that this gesture should be considered as a satisfactory solution to the pending issue. The Government also informs the Committee about the procedure conducted under the Organisation for Economic Co-operation and Development (OECD) Guidelines and the April 2019 recommendations, which encourage both the enterprise and its parent company to conduct activities respecting the OECD Guidelines.
5. 145. The Committee notes the detailed information provided by the complainant, as well as the Government’s reply thereto. The Committee recalls that this is a long-standing case relating to a number of allegations, including mass dismissals of union officers and members for participation in peaceful assemblies. The Committee had previously reiterated principles of freedom of association concerning anti-union dismissals and urged the Government to intercede with the parties so as to reach an equitable negotiated solution with respect to the approximately 100 dismissed workers who had not accepted the compensation package offered by the company, including through the payment of adequate compensation if reinstatement was no longer possible for objective and compelling reasons [see 365th Report, November 2012, para. 185; 356th Report, March 2010, paras 1215–1216]. The Committee recalls that the complainant’s request for reinstatement or payment of adequate compensation and the allegations of harassment against the TMPCWA President remain the outstanding issues of this case.
6. 146. Concerning the issue of reinstatement or adequate compensation to the dismissed workers, the Committee welcomes the Government’s numerous initiatives to reach settlement, including through repeated correspondence with both the enterprise and the parent company, but observes from the information provided that there continues to be a fundamental disagreement between the parties on this matter. On the one hand, the enterprise maintains its stance that the financial assistance offered to the dismissed workers constitutes adequate compensation, especially in view of the validity of their dismissal as per the decision of the Supreme Court, but that it remains open to extending the financial assistance to 75 workers who had not previously accepted it, as well as to participate in the DOLE’s proposal for a livelihood project. On the other hand, the complainant argues that a livelihood project does not constitute adequate compensation for the mass dismissals but can only be considered as an effort to keep the workers out of poverty and emphasizes that the matter of compensation remains pending since all negotiations were halted due to the substantial differences in positions between the parties. The Committee understands from the above that, despite the Government’s repeated efforts, negotiations between the parties have been stalled and that the parties have thus not reached any agreement, be it on compensation to the dismissed workers or on the livelihood project. Regretting that more than 19 years after the mass dismissals, this issue still remains pending, the Committee firmly encourages the Government to continue to take all measures that could bring the parties to the negotiating table and facilitate the dialogue between them, so as to settle this long-standing case and contribute to reaching an equitable and mutually satisfactory solution for both parties.
7. 147. As to the pending allegations of harassment against the TMPCWA President, the Committee observes that the Government does not provide any concrete information in this regard. The Committee further notes that the complainant denounces continued harassment of trade unionists, including a house search of the TMPCWA assistant treasurer. Recalling that the rights of employers’ and workers’ organizations can only be exercised within the framework of a system that guarantees the effective respect of the other fundamental human rights [see Compilation of decisions of the Committee on Freedom of Association, sixth edition, 2018, para. 70], the Committee firmly expects that the Government will conduct an expeditious investigation into these allegations and requests it to take all necessary measures to ensure that freedom of association may be exercised by the complainant, its members and officials, in a climate free from violence, harassment and threats of intimidation of any kind.
8. 148. Finally, the Committee notes the most recent allegations that the adoption of Executive Order No. 70 in December 2018 aims at perpetuating attacks against legal mass organizations and leaders, including trade unions and their activists, and that more than 60 activists were arrested and detained in October 2019. The Committee invites the complainant to provide additional information in this regard, including on the circumstances of the alleged arrests and the nature of the organizations concerned, and requests the Government to review these allegations so as to ensure that the incidents were not related to union activity. Further, observing from the text of Executive Order No. 70 that, through a number of actions, the national peace framework focuses on addressing the root causes of insurgencies, internal disturbances and other tensions, the Committee expresses the firm expectation that the Government will ensure that the Order is not misused to justify repression against trade unionists and their legitimate activities.