Northrail employees want recall of lay-off order

April 30, 2011

CITY OF SAN FERNANDO — A workers group called on the North Luzon Railways Corporation’s (NorthRail) new management to immediately lift the suspension order imposed on 70 employees.
The call came as new Northrail president Conrado Tolentino, in his April 14 notice to employees here, said that contractual obligations between Northrail and Sinomach for Phase 1, Sec. 1 has been suspended effective March 28, 2011.
“Pursuant to Article 286 of the Labor Code of the Philippines, a company is authorized to lay-off personnel when there is suspension of operation in an undertaking, provided that it does not exceed six months. The Northrail board, in its meeting on April 7, 2011, authorized management to lay-off personnel whose services are not necessary,” Tolentino said his letter.
the Northrail management issued formal notices to 70 employees that their employment will be “suspended temporarily starting May 1, 2011″ in the assumption that the said 70 employees are holding positions that are directly affected by the suspension of the contract and will no longer be necessary during the suspension.
In statement sent to Sun.Star Pampanga, the United Employees of Northrail-Federation of Free Workers Chapter (UENFFWC) said it was surprised and saddened by the suspension.
“We think that the Northrail Board of Directors/Management has wrongfully judged us because we believe that our positions are important in the completion of the Northrail project,” the employees said.
The employees also said it is just rational for them to conclude that they will be immediately reinstated after recent statements made by the Department of Transportation and Communication (DOTC) in the national media.
DOTC Undersecretary Glicerio Sicat was quoted as saying that they are about to finish reviewing the contract and they have not found anything wrong with it.
“There won’t be a cancellation,” he said.
Meanwhile, Transportation and Communication Secretary Jose De Jesus was also quoted by a national newspaper as saying that employees of NorthRail will be trimmed by 76 “due to over staffing.”
“NorthRail will reduce manpower by almost half, from 168 to 92,” said de Jesus according to a news report, as he pointed out that those who were laid off served non-technical positions.
However, the suspended employees said that de Jesus was “misinformed”.
“Contrary to his quoted statement, 46 out of the 70 laid-off employees or 66 percent are holding technical positions mostly from the Project Management Office. Only 24 came from support services. As a matter of fact, in one of the technical departments that has 21 employees only the manager was retained,” the employees said.
The employees are calling on the new Northrail management to be transparent and open to dialogue with them.
“We ask the Northrail management to tell us the truth because what are at stake here are not only our careers but our children’s future. And finally, we ask the Northrail management to immediately ‘lift the layoff’ and recall the 70 employees given the fact that the contract with Sinomach will push through,” the group said.
The two phases of the NorthRail project are being reviewed by the agency due to allegations of over pricing.
Sinomach, formerly China National Machinery and Equipment Corp., was awarded a contract to rehabilitate the NorthRail, a project funded by a loan from the Chinese Export-Import Bank.

Source: http://www.sunstar.com.ph/pampanga/local-news/2011/04/29/northrail-employees-want-recall-lay-order-152756

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