Olongapo SubicBay BatangGapo Newscenter

Friday, August 10, 2007

Probe of Taiwan firm in Subic urged

By Ferdinand Fabella - Manila Standard Today

A PARTY-LIST lawmaker yesterday called on Congress to investigate alleged labor law violations of the Taiwanese-owned firm that ran the Subic Bay Golf and Country Club at the Subic Bay Freeport Zone.

Rep. Carissa Coscolluela of the Buhay party said in a news forum in Makati City yesterday that Congress should look into the alleged violations of the Universal International Group Development Corp. of Taiwan.

Coscolluela said the company allegedly had numerous long-standing and unfulfilled development commitments under its lease development agreement with the Subic Bay Metropolitan Authority.

The authority earlier terminated its contract with the company after it allegedly refused to settle rent arrears amounting to P16.8 million, among other obligations.

The authority said the corporation had other violations of its lease agreement, such as unfulfilled development commitments since 1996, as well as various violations of labor, health, sanitation and environmental laws.

“Contrary to the allegations made in the privilege speech [of Northern Samar Rep. Emil Ong] last Monday, this is a clear case of an abusive foreign investor that had overextended its welcome and whose long list of contractual infractions and violations of the law should no longer be countenanced,” Coscolluela said.

She said records showed that the company had rental arrears totaling P37.7 million as of March 2007, plus contested obligations amounting to $2.12 million and P9.95 million.

Aside from the corporation’s supposed failure to fulfill its commitments, Coscolluela said the company also allegedly abused its workers by not giving them fair compensation and depriving them of adequate benefits and allowances.

“[The company] even committed various manifest violations of labor laws, including paying employees working for 12 hours a day rates below minimum wage, failure to give overtime pay, and non-remittance of employees’ premium contributions,” Coscolluela said.

Coscolluela defended Subic Freeport officials from allegations that they violated a court order covering issues that were distinct from the issues they raised.

Before the takeover, the Olongapo Regional Trial Court has issued a writ of preliminary injunction, prohibiting the Subic Bay Metropolitan Authority from carrying out its threat to issue a cease and desist order against the Taiwanese firm.

“The issues pertaining to the injunction were separate and distinct from the issues invoked by SBMA in terminating and rescinding the [lease agreement] for contractual breach and thereafter recovering possession of the golf course,” she said.

“It is clear, therefore, that the injunction order cannot prevent SBMA from pre-terminating and rescinding [the company’s lease agreement] on issues not involved in the case. It also bears noting that this extrajudicial recovery of possession under the [lease agreement] had already been upheld by the Supreme Court in an earlier case,” she said.

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