Davide thwarts Garcia-Durano alliance

At the 888 News Forum the other day, Hilario “Junjun” Davide III, leader of the administration Liberal Party in Cebu, announced he will not hesitate to step aside and give incumbent Cebu Vice Gov. Agnes Magpale the widest berth to run for governor under LP.

Davide’s statement immediately sent the political kapihans in overdrive with pundits saying the move not only foreclosed bitter political infighting in the local level but also seals the support of the Duranos for the national party ticket.

The local Bakud party led by Danao City Vice Mayor Ramonito Durano III is bidding for Ma’am Agnes to run for governor because she is not only qualified but also more experienced in the affairs of the province. Whether Junjun acknowledged that implicitly or not, his pronouncements forestalled any alliance between One Cebu and Bakud, a partnership that damaged his own gubernatorial run last year.

Former senator John “Sonny” Osmeña raised a howl over developments saying Davide cannot make a unilateral decision, i.e, endorse Magpale’s bid for governor without taking the consensus of the party. In a phone interview, Sonny said he will urge party members to call for a convention to determine LP’s official candidates in the local level. The party caucus will create an opportunity for his nephew, businessman Mariano “Mimo” Osmeña to bid for the governorship under LP.

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As expected, the package of benefits that Malacañang unveiled for the country’s 40 million workers did not merit any appreciation from labor groups lobbying for P125 increase in daily wages. President Aquino is in no mood to grant the workers’ demand saying, “The economy could not afford it, that it would scare off foreign investors and would lead to layoffs.”

P-Noy is careful not to change the rules of the game by pushing for legislated wage increases at a time when he is wooing foreign investments. This is very understandable, but on the other hand, workers cannot postpone putting food on the table and secure other basic necessities.

The conflict between management and labor is as old as man itself and there will be no end to this battle unless both sides find creative solutions. One strategy is the cooperative model, which  worked so well in a Japanese-owned company inside the Mactan Export Processing Zone.

I will not tire talking about the amazing power of the co-ops because I have seen it work in small towns and big cities, and just recently inside the special economic zones where oftentimes we hear of labor-management scuffles over low wages and lack of workers’ gratuities.

The MEPZ in Mactan hosts 100 locators after it was established in the 1980s.  One of them is the Taiyo Yuden (Philippines) Inc., which pioneered the mass production of semiconductors. PTY has more than 7,000 employees in the main plant and in the PIPC 12 branch inside the special industrial area.

The International Cooperative Alliance (ICA) has its main headquarters in Japan and I guess familiarity with the co-op movement prompted PTY to encourage its workers to set up one in 1990. The Taiyo Yuden Employees Cooperative (Tayemco) was born to bridge the workers’ need for cash assistance when families encounter difficulties in paying school fees and hospital bills.  Before this, workers used to hock their ATM cards to usurious lenders to borrow fast cash.

From a close-type co-op with a paid-up capital of P39,00, Tayemco remarkably grew with assets of over P143 million and more than 3,000 members. The success of the co-op may be gauged in its decision to open up to non-PTY employees, mostly small businessmen operating around Lapu-Lapu City.

The co-op runs a grocery store and a big restaurant business that caters to PTY executives and employees 24/7.  I visited the co-op last month and although MEPZ workers are not wealthy in the sense that they drive around in luxury cars or live in high-end subdivisions, they are fulfilled and happy to be owners of the thriving co-op that serve and bring benefits to members and the community as a whole. More importantly, the setup has encouraged optimum performance among employees, and as a result, generated harmony between management and workers.

The obverse side of this success story is the wholehearted support of management.  After Tayemco was founded, PTY allowed the co-op to make use of free office space, including utilities like light and water. The gratuities are very substantial and are just few of the many reasons why the co-op is thriving.

The co-op economic model has survived numerous economic debacles and as it evolves in human existence, the strategy has shown, as it does in the Tayemco experience, that it is an effective tool in enhancing workers’ welfare and promoting industrial peace.

It is high time for workers to look beyond knee-jerk solutions offered by traditional political allies and consider the co-op model because even if wages hit P1,000 a day, it would still come to nothing if workers do not work hard, exercise thrift and honesty in their dealings with others. The values-based system has made it possible for many communities around the Philippines and throughout the world, and it would be tragic if we pay no heed to what is tried, tested and true.