"Everyday we carve religious icons that help strengthen the religious faith of those people buying these products in Europe, but it is ironic that even the basic labor standards were not implemented in our factory. If only the Madonna can speak, she will tell you how our rights as workers were being violated in KACI." - a worker at KACI

The Kalayaan Arts & Crafts, Inc. (KACI) is a German-owned company producing wood-carved religious icons at the Cavite Export Processing Zone. According to the workers, a certain Mr. Hans Eibl of Nittenau, Germany owns the company. The company employs 130+ workers and they manually carve icons of the Madonna, Holy Family, the Crucifixion, angels, Christmas decors, and others.

Last January 10, 2000, the Pagkakaisa ng mga Manggagawa sa KACI (Workers' Union in KACI) started to hold their strike against the company's unfair labor practice and gross violations of basic labor standards.

According to the workers, the company does not release their wages on time. There is usually a delay of at least half-a-month. During these delays, the company only gives them little amount of money as salary advance for their transportation and meal expenses. The workers were always urged to finish their work so that they can meet the shipment date before the company gives them their wages.

The company regularly deducts from the wages of the workers certain amount as payment for the Social Security Systems (SSS) and the PAG-IBIG Fund but the company is not remitting these deductions to the SSS and the PAG-IBIG. The company last remitted its payment for the SSS during the first quarter of 1998. On the other hand, from 1996 to 1999, there were only five remittances made to the PAG-IBIG Fund. Because of this, the workers cannot avail of their needed credit, health, and other benefits from the two agencies.

The workers' unused sickness and vacation leave were not being paid by the company. They also ask the company to pay them of their tax refunds.

Majority of the workers are carvers being paid on a piece-rate basis. Their 13th month pay must be computed on their basic earnings/outputs but the company bases its computation of the 13th month pay on the minimum wage. This computation decreases the amount that the workers should get as their 13th month pay. The workers demand that they should be given back wages or back pay for the undercomputation of their 13th month pay.

Since August of last year, the company has forbidden the workers to have their 15-minute afternoon break period. According to the Philippine Labor Code, the employees are allowed to have 30 minutes of break period with compensation, 15 minutes in the morning and another 15 minutes in the afternoon.

Safety gadgets such as masks, safety shoes, gloves, and others were also not provided by the company to its workers. Several work-related accidents have already occurred in the factory.

Because of the company's violations of basic labor standards, the union tried to hold a dialogue with the management but nothing happened. This has prompted the workers to hold several protest actions and they forwarded their complaints before the National Conciliation and Mediation Board (NCMB) of the Department of Labor and Employment and the Industrial Relations Division (IRD) of the Cavite Economic Zone Authority during the latter part of 1999. Union and management representatives signed two memoranda of agreement (MOA) attested by the officials of the NCMB and IRD but still, the company failed to comply with the MOA. In these MOA, the company promised that they will settle these issues: a) the company shall send a check to the SSS for the unremitted payment to the SSS; b) the company shall update the wages of the workers; c) the company shall pay the workers their tax refunds and unused vacation and sickness leave; and d) that the company shall release to the workers their 13th month pay on December 23, 1999. The only demands that were given by the management were the tax refund for the year 1994, 1997, and 1998, and the back wages for the 13th month pay for 1999.

Last November 1999, the union vice-president was dismissed from work and union president was suspended from work.

On December 8, 1999, the union initiated a mass leave and worked only for half-day because they've seen that the company is not abiding by the MOA and also because of the dismissal and suspension of the two union officers. Ninety percent of the workers joined the protest and in retaliation, the management suspended the workers from work for three days. As a response, the union staged a picket-protest from December 9-12, 1999.

The employment of the union president was eventually terminated on December 9, 1999.

The union demands for the reinstatement of dismissed union officers and the implementation of basic labor standards violated by the company as stated above.

As of this writing, the workers of KACI are still on strike.

UPDATE

* January 25, 2000.

A dialogue at the National Conciliation and Mediation Board was held between the representatives of the union and management. The management refused to reinstate the dismissed officers of the union. Because of this, the Solidarity of Cavite Workers, an alliance of workers' organization in the province of Cavite, today held an inter-union mobilization/rally in front of the KACI factory denouncing the continued refusal of the management to give-in to the demands of the union. This was participated by some 200 workers representing eight SCW chapters in the Cavite Export Processing Zone.

* January 27, 2000.

A petition for a temporary restraining order was filed by the company before the National Labor Relations Commission of the Department of Labor and Employment (NLRC-DOLE). * January 28, 2000. A tension at the picketline errupted when the Philippine Economic Zone Authority police tried to disperse the on-going strike. This was after Mr. Oliver Schwock, the manager of the company, who was about to leave the company's premises, strongly refused to have his car inspected by the union. The union requested Mr. Schwock that they'd be allowed to inspect his car to ensure that no products are taken out from the factory. Wood-carved religious items can very well fit inside the car and if the management will be able to sneak out little by little the products from the company's warehouse, then it would render the purpose of the strike futile. The union formed a human barricade to block the way of Mr. Schwock. Mr. Schwock then called for the assistance of the PEZA police who eventually came in numbers with a fire truck and threatened the dispersal of the picketline. After the negotiations failed, an order of dispersal from PEZA came. The police even blocked the way of other Solidarity of Cavite Workers' unions who came to support the union at KACI. The threat of dispersal became futile as the unionists were courageously standing firm and strengthened further their barricade. The unionists told the police that if they will be dispersed, they have no other alternative but to fight back. Sensing the strong determination of the unionists, the police backed-off and instead negotiated with the manager. Mr. Schwock eventually allowed the inspection of his car by the union. Currently, the union doubles it efforts to further strengthen their ranks and remain vigilant. PROTEST LETTER. Below is a sample protest letter which can be used and sent to the following --

The Director Hans Eibl GmbH
Am Weilebach 1
93149 Nittenau,
Germany
Fax: +49-9436 2402

Email: info@eibl-nittenau.de

Web: (für Kommentare gibt es ein Webformular
http://www.eibl-nittenau.de/html/kontakt.html ...)

Dear Sir/Madam:

We are writing to express our concern about the on-going strike of the workers at the Kalayaan Arts & Crafts, Inc. located at the Cavite Export Processing Zone, Philippines.

We have been informed that there were gross violations of workers' rights in the factory that triggered the strike since January 10, 2000.

The workers' union demands the following:

1. Immediate reinstatement to work of the union president and vice-president to their respective former positions, without loss of seniority rights, compensation, tenure, and other benefits. Likewise, to pay each of the dismissed officers their back wages, computed from the time of their dismissal up to the time of their actual reinstatement.
2. That the company updates and gives the wages of the workers on time.
3. That the company remit the payment to the Social Security Systems and PAG-IBIG Fund so that the workers can avail of their credit, health and other benefits.
4. That the company pays the workers of their back wages for their 13th month pay.
5. That the company pays the workers of their unused sickness and vacation leaves.
6. That the company provides safety gadgets and devices to its workers.
7. That the company respects the rights of the workers to organize, to be heard of their grievances, and to cease from union busting.

We believe that the workers rightfully deserved their fair share from the fruits of their labor.

As a company that provides the Catholics in Europe religious icons to facilitate the strengthening of their Catholic faith, we know that you can do more by heeding the demands of your workers.

Sincerely,

Cc: His Excellency Joseph Ejercito Estrada
President of the Republic of the Philippines
Malacanang, Manila, Philippines
Fax No.: +63-2 735-8006

Hon. Bienvenido Laguesma
Secretary
Department of Labor and Employment
2nd Floor, DOLE Executive Building
San Jose Street, Intramuros, Manila
Philippines
Fax: +63-2 527-3494

Atty. Lilia de Lima
Director General
Philippine Economic Zone Authority
Roxas Boulevard corner San Luis Street
Pasay City, Philippines
Fax: +63-2 891-6380 / +63-2 891-6382
Email: dg@wpi.webquest.com

Hon. Mar Roxas
c/o Acting Secretary Lilia Bautista
Department of Trade and Industry
4th Floor, Industry and Investments Building
Senator Gil Puyat Avenue
Makati City, Philippines
Fax: +63-2 896-1166

SOLIDARITY LETTER. Letters of solidarity to the struggling workers at Kalayaan Arts & Crafts, Inc. (KACI) can be sent through --

Workers' Assistance Center, Inc.
Bahay Manggagawa
Indian Mango St., Manggahan Compound,
Sapa 1, Rosario 4106
Cavite, Philippines
Fax: +63-46 438-4736
E-mail: wac1@cvt.csi.com.ph

ALARM Project
c/o Asia Monitor Resource Center
444 Nathan Road, 8-B, Yaumatei
Kowloon, Hong Kong
Tel: (852) 2332-1346 Fax: (852) 2385-5319
E-mail: alarm@pacific.net.hk / amrc@pacific.net.hk
URL: http://home.pacific.net.hk/~amrc

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