Dismissed workers picket Japanese factory in Digos

DAVAO CITY—A Japanese company manufacturing construction materials for export has dismissed workers who, according to a militant labor alliance, declined to sign a document waiving their right to regular employment.

The Kilusang Mayo Uno (KMU) in Southern Mindanao said Nakayama Technology Corp. in Digos City fired 157 workers for not signing job contracts that will make them agency-hired, but the company’s legal counsel said only 30 had not reported for work and had refused to renew their contracts with their agencies.

Nakayama, which produces brick and granite wall panels, and roofing systems for export to Japan and other countries, reportedly employs about 2,000 workers.

Carlo Olalo, spokesperson of the KMU in Southern Mindanao, said on Wednesday that the workers were issued their walking papers on the same day after they declined to sign a document that strips them of their right to regular employment.

“By operation of law, these 157 workers should have already been considered regular workers since they have been working with the company for one to six years,” Olalo said, citing a Labor Code provision which ensures regular employment for those who have been working with any company for six months and a day.

On Tuesday, workers who were reportedly fired held a picket outside Nakayama’s factory and office in Barangay Cogon in Digos.

Lawyer Robert de Leon, Nakayama counsel, said the picketing workers were not directly hired by the company but were hired by two job agencies

“We don’t know them because they are not our workers,” he told the Inquirer by phone interview.

De Leon said Nakayama wanted to talk with the protesters, but “they did not have an authorized representative whom we can talk to.”

“It’s difficult to talk to so many people,” he added.

Olalo said Nakayama appeared to be using Department of Labor and Employment’s Order No. 18-A, which allows companies to convert “overstaying” workers into agency hires. “Overstaying workers” is a shop floor term for those who by law should have been declared regulars but have remained contractual workers.

“The department order (DO) has made contractualization even more widespread through the creation of labor agencies,” he said. “Under DO 18-A, it has now become legal for companies to evade responsibility in giving workers their right to regular employment.”