Dear Friends,
The Asian Human Rights Commission (AHRC) has received information from Defend Job Philippines about the illegal dismissal of the whole leadership of the NXP Workers Union by the management of NXP Semiconductors Philippines, INC. The workers were dismissed on 5 May 2014 on the pretext of their not reporting to work on 9 April, the Day of Valour, and on April 18 and 19, Maundy Thursday and Holy Friday, respectively. These days are declared as non-working holidays every year. Following this, the management terminated the Collective Bargaining Agreement (CBA), froze the union’s bank account, and filed charges before the court against the union leaders. It has also pressured the workers to accept the wage increase of 3.5%, threatening the dissolution of CBA if they were to refuse. The AHRC condemns the unilateral move and demands reinstatement of the dismissed workers and union leaders. The AHRC also urges the authorities of Department of Labour and Employment to intervene in the case and ensure that workers’ right, including the right to collective bargain, is respected by the management of NXP Semiconductors Philippines, INC.
CASE NARRATIVE:
On 5 May 2014, NXP management illegally dismissed the whole leadership of the NXP Workers Union, which is an affiliate of labor center Kilusang Mayo Uno.. They have been charged for not reporting to work on 9 April, the Day of Valor, and on April 18 and 19, Maundy Thursday and Holy Friday respectively. These days are declared non-working holidays every year. Subsequently, the management has unilaterally terminated the Collective Bargaining Agreement (CBA), frozen the union’s bank account, filed charges before the court against the union leaders, and threatened the workers to accept the 3.5% wage increase. The union had been holding CBA negotiations with the management since December 2013. With these summary dismissals and the management’s outright refusal to accept the demands of the workers, negotiations have hit a deadlock.
The AHRC firmly believes that the NXP workers’ demands of 8% wage increase, regularization of 1,500 contractual workers and other legitimate rights and welfare in their CBA are completely justified. To put this in perspective, NXP is one of the most profitable companies in the world; it is a leading semiconductors company. The global revenue of the company stood at a staggering USD $ 4.82 billion in 2013, and 64% of the same, came from Asia. The company has paid its Chief Executive officer with a total compensation of USD $ 4,668,455, which includes salary, bonus, restricted awards and other heads, in the same financial year. As opposed to this, the company has doggedly refused to accept the demand of a wage hike of Peso 60 or USD $ 1.39 a day per worker. Further, it has perpetuated the job insecurity of thousands of workers that it has refused to regularise.
The Philippine government, through the the Department of Labour and Employment, and the Philippine Economic Zone Authority are complicit in the continuing labour rights violations by the NXP management. No actions have been taken to contain the excesses of the management. While the government is duty bound to protect the rights of its people – such as right to work, job security, and just wages as a guarantee for social justice – it has consistently promoted the interests of the management by allowing 100% contractual labour employment with bare minimum wages. And, it has also let the management enforce a no union no strike policy.
The company, like many others, on the other hand, have been given tax holidays, 100% corporate tax exemption, duty free import of raw material and production equipment, export tax emeption, and finally, exemption from expanded withholding tax. This is the lax policy of the government. NXP has hired 1,700 workers, as contractual, i.e. with no right to wage increase, benefits, or to unionise and be covered by collective bargaining agreement. This is also why the dismissal of the 24 union leaders comes across as a vital component of NXP management’s attempt to bust the NXP Workers Union. Evidently, it cannot maximise its profits without neutralising the union.
SUGGESTED ACTION:
Please write to the authorities listed below, demanding immediate intervention to ensure immediate reinstatement of all illegally dismissed workers of NXP Semiconductors Philippines, INC.
To support this case, please click here: SEND APPEAL LETTER
SAMPLE LETTER
Dear __________,
PHILIPPINES: Reinstate all workers of NXP Semiconductors dismissed illegally
Name of the Victims: 24 workers of NXP Semiconductors Philippines, INC
Name of the Perpetrators: Management of the NXP Semiconductors Philippines, INC
Time & Place of Incident: Cabuyao Laguna, 5 May 2014
I want to draw your kind attention to NXP management's illegally dismissal of the entire leadership of the NXP Workers Union on 5 May 2014. I was informed that the wokers including whole leadership of the NXP Workers Union, an affiliate of labor center Kilusang Mayo Uno, were charged with not reporting to work on 9 April, the Day of Valor, and on April 18 and 19, Maundy Thursday and Holy Friday respectively. These days are declared non-working holidays every year. Subsequently, the management has unilaterally terminated the Collective Bargaining Agreement (CBA), frozen the union's bank account, filed charges before the court against the union leaders, and threatened the workers to accept the 3.5% wage increase. The union had been holding CBA negotiations with the management since December 2013. With these summary dismissals and the management's outright refusal to accept the demands of the workers, negotiations have hit a deadlock.
I firmly believe that the NXP workers' demands of 8% wage increase, regularization of 1,500 contractual workers and other legitimate rights and welfare in their CBA are completely justified. To put this in perspective, NXP is one of the most profitable companies in the world; it is a leading semiconductors company. The global revenue of the company stood at a staggering USD $ 4.82 billion in 2013, and 64% of the same, came from Asia. The company has paid its Chief Executive officer with a total compensation of USD $ 4,668,455, which includes salary, bonus, restricted awards and other heads, in the same financial year. As opposed to this, the company has doggedly refused to accept the demand of a wage hike of Peso 60 or USD $ 1.39 a day per worker. Further, it has perpetuated the job insecurity of thousands of workers that it has refused to regularise.
The Philippine government, through the the Department of Labour and Employment, and the Philippine Economic Zone Authority are complicit in the continuing labour rights violations by the NXP management. No actions have been taken to contain the excesses of the management. While the government is duty bound to protect the rights of its people – such as right to work, job security, and just wages as a guarantee for social justice – it has consistently promoted the interests of the management by allowing 100% contractual labour employment with bare minimum wages. And, it has also let the management enforce a no union no strike policy.
The company, like many others, on the other hand, have been given tax holidays, 100% corporate tax exemption, duty free import of raw material and production equipment, export tax exemption, and finally, exemption from expanded withholding tax. This is the lax policy of the government. NXP has hired 1,700 workers, as contractual, i.e. with no right to wage increase, benefits, or to unionise and be covered by collective bargaining agreement. This is also why the dismissal of the 24 union leaders comes across as a vital component of NXP management's attempt to bust the NXP Workers Union. Evidently, it cannot maximise its profits without neutralising the union.
I therefore urge you to ensure that
1. All illegally dismissed workers are immediately and unconditionally reinstated;
2. Negotiations for the Collective Bargaining Agreement with the Union; are resumed and legitimate demands of the workers are accepted;
3. The company starts a timebound process of regularising contractual workers to ensure their livelihood security;
4. The contractual workers are covered by the provisions of the Collective Bargaining Agreement till the regularisation process is completed;
5. The company respects workers' right and stops contractualisation and flexibilisation of labour;
6. Concerns regarding the food security of retrenched workers are immediately addressed and a process of fixing wages to ensure a right to life with dignity is instituted so that the workers can rise above mere subsistence.
Sincerely,
_______
PLEASE SEND YOUR LETTERS TO:
1. Mr. Benigno Aquino III
President
Republic of the Philippines
Malacanang Palace
JP Laurel Street, San Miguel
Manila 1005
PHILIPPINES
Fax: +63 2 736 1010
Tel: +63 2 735 6201 / 564 1451 to 80
2. Ms. Loretta Ann Rosales
Commission on Human Rights
SAAC Bldg., Commonwealth Avenue
U.P. Complex, Diliman
Quezon City
PHILIPPINES
Fax: +63 2 929 0102
E-mail: chair.rosales.chr@gmail.com
3. Corazon Juliano-Soliman
Secretary,
Department of Social, Welfare and Development
Constitution Hills, Batasan Pambansa Complex,
Quezon City
PHILIPPINES
Tel/Fax: +63 (2) 931-81-91
4. Ms. Rosalinda Baldoz,
Secretary
Department of Labor and Employment (DOLE)
Muralla Wing cor. General Luna St., Intramuros,
Manila, 1002,
PHILIPPINES
Fax: +63 2 336-8182
Email: secrdb@dole.gov.ph
5.Mr. Rick Clemmer
Chief Executive Officer, NXP
NXP Semiconductors Netherlands B.V.
HIGH TECH CAMPUS 60
5656 AE EINDHOVEN
NETHERLANDS
Fax: +31402743375
Email: rick.clemmer@nxp.com
6. Mr. Jose Miguel Orleans
General Manager NX
NXP Semiconductors
Philips Ave. cor Binary St., LISP1 ,
Bo. Diezmo Cabuyao Laguna
PHILIPPINES
Tel: +634 9543 0001 loc 2291
E-Mail: mike.orleans@nxp.com
Thank you
Hunger Alerts Programme
Right to Food Programme (foodjustice@ahrc.asia)
Asian Human Rights Commission (ua@ahrc.asia)
