400 shipyard workers' jobs on the line

Ship repair firm plans to cut jobs

By Cris Evert Lato - Cebu Daily News
About 400 workers of a ship repair company in Lapu-Lapu City are in danger of losing their jobs as the management decides to focus resources on shipbuilding.

Keppel Cebu Shipyard Inc. president David Loh said in a memorandum to the workers that the company has to reduce its workforce due to continuing market decline.

The company offered an early retirement program for the workers on a voluntary basis. The program could be availed from March 2 to March 14.

But Roger Igot, president of the Nagkahiusang Mamumuo sa Baradero (Keppel Shipyard)-Nation Federation of Labor, said yesterday that the company is “using the global crisis as an alibi to destroy the union and replace regular jobs with contractual workers.”

“The real issue is that management wants to squeeze more profit by making labor costs cheaper. Management pays a regular Keppel worker much higher wages and benefits compared to a contractual laborer who makes do with below minimum wages and no benefits,” said Igot.

Igot and about 280 union members stayed inside the shipyard facilities overnight last Tuesday to protest the firm’s work reduction plans.

In a statement sent to , Keppel Cebu said the company's decision to focus on shipbuilding was reached in mid-2008 due to declining domestic repair demand.

Keppel Cebu said substantial investments were made to enhance its shipbuilding facilities. Facility upgrade is expected to be completed within the year which will enable the company “to build specialized ships for both the local and international markets.”

“As certain specialized trades and skills in ship repair are no longer needed for shipbuilding, the compnay needs to rationalize its workforce,” said Keppel Cebu in the statement.

Igot however said the shipyard management told them during their collective bargaining agreement (CBA) negotiations in June 2008 that more workers will be hired as Keppel turns to shipbuilding.

Igot said they do not believe that the company is losing.

He cited the ongoing shipyard development project worth P300 million and the incentive bonus released last February as proof that the company is still earning.

Jennifer Macairan, corporate affairs manager of Keppel Cebu Shipyard Inc., denied accusations that the company is using the crisis as an excuse to remove workers.

Macairan said that the firm has been affected with the global economic crisis.

She said that the company is practicing job rotation and energy conservation as cost cutting measures.

She said the early retirement program offered by the company was triggered by the financial crisis.

Keppel Cebu, formerly the Cebu Shipyard, is a wholly-owned subsidiary of Keppel Philippines Marine Inc. (KPMI). It is also a member of the Keppel Group of Singapore, an international marine and offshore services. /With correspondent Jully Venus Cuizon.

Senate urged to probe Cebu smuggling

By Jolene Bulambot - Inquirer Visayas Bureau

CEBU CITY -- AN OFFICIAL OF A GROUP OF customs brokers here on Saturday asked the Senate to investigate the rampant smuggling of cars through the Cebu port.

Ricky Gantuangco, executive vice president of the Visayas chapter of the Professional Customs Brokers Association of the Philippines (PCBAP), said his group knew the identities of brokers and importers who were conniving with customs officials in smuggling used luxury cars, but was helpless.

He said some officials of the PCBAP feared harassment from customs officials if they involved themselves in the investigation.

Some PCBAP members import surplus vehicles.

“To even the playing field, especially since only a few privilege people are enjoying it, we hope a Senate or a congressional inquiry would (also) be conducted,” he said.

Gantuangco said car smuggling in Cebu has been hurting the legitimate business of brokers and importers who are members of the PCBAP.

He said investigators should zero in on brokers whose earnings are too big to be explained by their legitimate importation.

Some customs officials demand P30,000 in bribe from brokers and importers for every container van loaded with smuggled vehicles.

Bribes, known in customs jargon as tara or suborno, have become part of standard operating procedures in the port of Cebu, he said.

“You can ask those brokers who are into that activity, they can tell you exactly how much they are giving to the customs officials,” said Gantuangco. “It’s already alarming.”

The Cebu Auto Dealers Association (Cada) earlier said Cebu has become a prime destination for smuggled luxury car, prompting the Visayas Ombudsman to start an investigation.

Records from the Chamber of Automotive Manufacturers in the Philippines (Campi) said legitimate car dealers sold 1,686 cars and 3,274 other vehicles but the Land Transportation Office registered 3,584 cars and 21,637 other vehicles.

Jose Manuel Cuenco, Cada president, said his group supports Gantuangco’s call for a Senate investigation.

“(Car) smuggling is so prevalent in Cebu that people think that it is normal already… This must be stopped,” he said.

Cada had written Finance Secretary Margarito Teves to put a stop to the smuggling. There was no response yet.

The customs bureau started an investigation, but its officials are already saying that smuggling was impossible because the port of Cebu has a sophisticated X-ray machine that could detect contraband in closed container vans.

These officials said the smuggled cars could have entered through other ports and were brought to Cebu as domestic cargo.

The Department of Transportation and Communications also started an investigation.