Steel Corporation of the Philippines is the last fully integrated steel plant still standing in the country and it must be saved from predatory takeover attempts by those casting a moist eye on its business for their own selfish interests. Because BDO failed to take over SCP after forcibly bringing it to corporate rehabilitation, fear are rife that it now wants to do it again by using the liquidation order as an excuse to use SCP funds to selectively buy back its debts held by the other creditors to complete the takeover.
After the Batangas Regional Trial Court Branch-3 issued an order for the company to undergo liquidation proceedings, about 300 employees of Steel Corporation of the Philippines (SCP) are now in danger of losing their jobs?
That decision ignited the employees to protest what they see as a clear violation of the Labor Code of the Philippines.
The employees of SCP also stressed that the rehab court disregarded the earlier orders of the Court of Appeals and Supreme Court where there are still pending cases filed by the group in connection with the issue.
Because of the alleged lack of knowledge of RTC Branch-3 Judge Ruben Galvez about the real state of their company, more than 50 SCP workers who zoomed to the Batangas Hall of Justice fear of losing jobs, it’s sad because Christmas season is approaching.
The angry employees voiced out “Magkano ang perang involved Judge?!” (How much money is involved Judge?!), in front of Batangas City Hall of Justice of Justice as they asked Judge Galvez to inhibit from the case. The legal counsel of SCP has already filed a Motion to Intervene with Motion to Suspend Execution of the Order of Liquidation.
Atty. Herman Nicdao said; more than 300 employees of SCP will not be able receive their wages once the order is implemented. He then called on Judge Galvez to resolve the dispute as soon as possible for the sake the families of SCP employees.
In his statement, he said;
“Although BDO assured that if the liquidation proceedings is carried out, they will take care of the financial aspect of the affected workers, what assurance can they give that they are talking about the continuous employment of the workers and not talking about the separation pay of the workers?”
He also reiterated that implementation of the liquidation proceedings can be considered a court blunder without the issuance of a 30-day prior notice to the employees for work stoppage as stated in the Labor Code.
He also added: “As I stressed earlier, the SCP was in full operation prior to the issuance of the liquidation proceedings. There is no reason to cease operation. So under the law, a 30-day prior notice is required before an employee may be terminated,”
Until now, Nicdao maintained that the workforce of SCP is not yet formally informed of the reasons why their company will cease operation.
It was noted that BDO has yet to give an assurance that employees of SCP will be absorbed once they take over the company while there are ongoing debate by the counsels from both parties
Moreover, Atty. Ferdinand Topacio, another counsel for SCP, shared that it is indicated in the corporation code that in cases of liquidation proceedings, the baseline of loans and credits should be made clear to every stake holders.
“In the present case, the baseline has not yet been accurately determined… There are several entities whose interests also have to be considered by the court… There are the labor force, the unsecured creditors, and the stockholders.”
To determine accurately the loan amount SCP got from each creditor, Topacio explained that there are other creditors who are part of the case aside from BDO who agreed to defer the liquidation for the meantime.
“Since the properties are in custodia legis anyway, election of a liquidator is not yet necessary,” he pointed out. “We implore the court to have a second look.”
Topacio hopes that justice will be served not only for the interest of SCP but also for the welfare of its 300 employees who are in peril of losing a source of living.
An amount of P1.3-B from different creditors that includes Banco De Oro (BDO) which is owned by business tycoon Henry Sy of SM was earlier reported that the order for liquidation proceedings transpired after SCP loaned
Reports say that BDO immediately filed a petition to place SCP under corporate rehabilitation after the later failed to pay for the loan on time which led to the liquidation proceedings as directed by Judge Galvez. Once the proceedings are completed, BDO can easily take control of SCP and all its assets.
Atty. Norma Singson De Leon recently issued a report that SCP is no longer operating rather it was placed under “maintained” and “padlocked” status, which was also revealed that court-appointed receiver was then followed by the issuance of the liquidation order from Galvez.
SCP Employees Union President Ruben Rodriguez denied the allegations and stated that their company is 100% fully operational.
“Hindi kailanman tumigil ang operasyon ng aming kumpanya. Baka ang sinasabi nila ay yung pagpapahinto ng operation ng isa sa aming linya na bihira din namang nangyayari. Pero kapag hininto ang isang linya, ay tuloy pa rin ang trabaho ng lahat dahil inililipat ang ilan sa amin sa ibang linya kaya’t walang nababakanteng trabahador sa min!” Rodriguez emphasized.
