NPC to help Mirant employes on ‘severance package’ issues
Monday, September 18, 2006
By MYRNA M. VELASCO
Both embroiled in their respective claims in the forthcoming sale of Mirant Corporation’s interests in the Philippines, state-owned National Power Corporation (NPC) has opened its door on the appeal of the US firm’s employees to help them in their bid for severance packages.
In an interview with reporters, NPC president Cyril C. del Callar averred that "we are willing to listen because we understand their predicament."
At this point though, he noted that he prefers that the employees of troubled Mirant Philippines will forward any form of formal communication to government that will detail out circumstances or concerns that have been perturbing them on that whole issue of separation benefits.
"I want to have more information because it’s only that way we would be able to ascertain how we can help them," he added.
It would be noted that state-owned NPC is also waging its own uphill battle on ‘prior consent’ that Mirant shall secure before any transaction is finalized with a buyer of its equity shares covering the Philippine assets.
The four bidders shortlisted by Mirant Atlanta and its sale advisor Credit Suisse are due to kick off physical due diligence this week; but the resolution of these two contentious issues are still going nowhere.
Mirant Philippines chairman Jose Leviste told a Congressional hearing that their employees are amply protected by law when they get separated by the new owners and they are among those currently enjoying generous benefits; but this management pronouncement does not come as a convincing assurance for the employees.
"Employees are uneasy over the assurance since there is no written policy, only company practice, which are non-binding on the new owners, who can easily change such a practice," a source has argued.
The prospective buyers of the company are supporting the view that being sensitive to the concerns of the employees is a major concern, and most of them prefer that the issue with the employees be settled first before takeover occurs.
One of the recommendations being proffered is to set a specific provision in the sale transaction document that will address the employees’ bid for separation package.
Mirant employees are asking their Atlanta-headquartered parent firm for the payment of 2.5 months worth of pay for every year of service to be paid out to all affected employees regardless of rank once the sale is completed.
The sale of the Philippine equity shares is expected to fetch up to $ 3.0 billion and proposals have also been set forth that the cost of separation pay be treated as deduction in the valuation of the assets, in case the responsibility would be passed on to the new owner.
"Mirant employees just want their years of service to the company protected. After all, they have given the parent firm billions of pesos in net income the past years," another source has stressed; adding that what is being asked just falls within the standard industry practice.
It was further noted that the employees are willing to sign a transition contract to ensure that they will continue to work and run the plants for at least three months after the sale to give the new management the prerogative to re-organize the company; and should they be re-hired, they can start their tenure on a clean slate.
posted by philpower @ 9:02 AM,
