Lessons from Danao

When people mention Danao City, some images immediately come to mind: the political dominance of the Durano family, large fish produce brought daily to the Danao fish port from neighboring islands and the clandestine manufacture of paltiks or home-made guns.

To these pictures are added Cebu Mitsumi, Inc., the largest manufacturing company in Danao City, and by extension, the company-based Co-op known as Cebu Mitsumi Employees Multi-Purpose Co-operative Cemimpco.

Mitsumi is a Japanese-owned manufacturing company that produces camera modules for cellular phones, micro-actuators for auto-focusing mechanism of digital camera as well as web camera and connector and wire harness for communication and telecommunication gadgets. Whatever mobile phone you’re using, chances are its mechanism derived from the produce of Mitsumi.

The presence Cebu Mitsumi, which started operations in 1989, prompted the local government unit to step up its delivery of basic services. One of major improvements undertaken by the LGU was the creation of the first Public Transport Terminal. Efficient delivery of water supply, telecommunication and peace and order services also followed. The positive business climate spiked commercial activity and drew workers from far and wide. Mitsumi employs 20,000 people mostly coming from other Visayan islands.

I’m writing about Mitsumi because of two striking aspects in its business outline: the dominance of women workers in terms of numbers and the instruction of the Japanese philosophy of business productivity, known as 5S, on all workers. 5S stands for sorting, straightening, systematic cleaning, standardizing and sustaining. Ninety-four percent of Mitsumi workers are women assigned in assembly lines. Many male employees occupy supervisory positions.

Hubert Deiparine, a supervisor and member of the co-op board of directors explains the company’s bias for women: production work is delicate because it entails a lot of focus and patience. The 5S philosophy has resulted in a well-performing and harmonious business that puts premium on productivity and efficiency, according to Deiparine.

I gathered this information in the course of documenting Cemimpco. The documentation of outstanding co-operatives is a project of Victo National to mark, initially, 2012 Year of the Co-ops. The celebration has evolved into a nine-year-long activity, one that will climax in the Decade of the Co-ops come 2020.

If I may digress a bit, Victo National is currently in transition owing to the appointment of its CEO, Mercedes Castillo to the Co-operative Development Authority or CDA Board of Administrators. Fortunately, the secondary co-op is not lacking in competent people like co-op expert Edgar Comeros, who currently leads the stable of professionals and creative staff, like Dudz Samson. I had the opportunity to interact with Dudz last week. He was brimming with ideas related to new projects that would definitely raise the bar for Co-ops.

* * *

Of the more than 20,000 Mitsumi employees, some 7,000 are regular workers, of which nearly 80 percent belong to Cemimpco.

Founded in 1993 through the dogged efforts of 21 company supervisors and employees, the co-op started with only P21,000 in assets. The objective in setting up the self-help group was to rescue Mitsumi workers trapped in the vicious cycle of borrowing from loan sharks. It didn’t take long for the usurious activity to be crushed and since then, there was no looking back.

Last time I noted, the co-op had close to 5,600 members with assets totalling more than P246 million as of 2011. The robust financial status is underlined by transparency in governance. The record of the Danao-based people’s enterprise is squeaky clean—untarnished by controversies related to financial mismanagement or corruption.

The co-op’s best practice derives from the exceptional work that women employees render for the company and the care they give to the co-op. Focus and hard work have translated into a disciplined lifestyle and helped members go into livelihood enterprises like hog raising and fattening, Internet café business, baking, fashion accessories, etc.

I need not mention how this impacted on the lives of so many families. A mother once told me that a college education for her children has become not just accessible because now they can well afford to send them to quality schools in Cebu City.

The insights I gathered from Cemimpco are unique in the sense that officers and staff do not just discharge institutional services related to lending, or social services like livelihood and environmental strategies.

There is a sense of a “home” in the co-op, as can be seen in the orderly office set up and the cleanliness of the surroundings. Officers also see to it that members have access to spiritual nourishment like recollections and related programs.

Once, I heard the manager, Ms. Maylene Malapitan give advice to a member having financial problems. Morag inahan ang Co-op (like a mother), according to Mai Malapitan. Her view is echoed by the board of directors led by Mil Tangalin and the rest of the BOD.

In sum, the woman’s nurturing spirit coupled by hard work, discipline and the productivity-enhancing environment provided by the company has made Cemimpco very outstanding in so many fronts.

With all due respect to the male population of co-ops, the Cemimpco experience should prod the sector to develop a new template. The women-dominated organization is clearly a novel approach to the financial model that works best for the country.

Kudos, Cemimpco!