DAVAO CITY – The total cost of the workers’ union demand of salary increase and benefit is only five percent of the two year’s worth of net profit of the air cargo delivery service provider Luzon Brokerage Corporation’s (LBC),  a labor group said on Friday.

LBC Davao Employees Union declared a deadlock on its collective bargaining agreement (CBA) with the management on Monday which the union blamed on the latter’s refusal to increase the worker’s salary.

In an interview with Davao Today on Friday, Carlo Olalo, Kilusang Mayo Uno Southern Mindanao spokesperson, said the management is sticking to its three percent salary increase. The workers have asked 15 percent salary increase.

Olalo said the workers demands is “only 5% of the net income of LBC in two years.”

“The workers demand is minimal, only 5 % of the company’s net profit that is P56 million pesos in two years,” Olalo said adding LBC netted P37.72 million in 2013 and P19.14 million in 2014 based on the documents of the company.

The LBC Davao Employees Union represents 188 rank and file workers.It is affiliated with the Association of Democratic Labor Organizations – Kilusang Mayo Uno (ADLO-KMU).

Negotiations began in November last year and LBC management has stuck to its counter-proposal, which is around P9 to 12 pesos daily depending on the worker’s income range.

Olalo said the management also refused to propose any offer on all the other benefits demanded by the union.

The union’s original proposal on wage and other benefits are as follows: 15% salary increase;  six days vacation leave; seven days sick leave; educational assistance; union leave; 14th month bonus; and signing bonus.

Meanwhile, the union has adjusted its wage proposal to seven percent in a decision arrived at its latest consultation with workers on Monday.

KMU Mindanao spokesperson, Joel Maglunsod in a statement said the LBC management “has tried to convince the union that the company is in financial difficulty and experiencing zero to negative growth, but the union has insisted that LBC’s financial statement and expansion plans negate this assertion.”

“We are dealing with a capitalist which has amassed its wealth from the sweat of its workers who perform services beyond what is standard, pushing cargo and other services forward with ease and professionalism. Yet, what it is offering its workers is inarguably sub-standard and must be rejected,” Maglunsod said.

Olalo said the deadlock will result to protest actions of the workers’ union.

“On Tuesday (March 24), we will have a protest action in front of the LBC hub in Sasa,” Olalo said. (davaotoday.com)

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