Philippines: Collective agreement deadlocked for 28 months over "optional" performance-based pay

For 28 months members in the Ilagan Coca-Cola Plant & Sales Offices and Sales Force Union (ICCPSOSFU) have been denied any possibility of securing a new collective agreement due to their refusal to agree to the compulsory inclusion of "P3" performance-based pay. 
 
When collective bargaining began on 12 May 2011 management stated that P3 is mandatory and non-negotiable. The unionproposed an across the board wage increase instead of P3 but management refused to consider this and no negotiation was possible. Under these conditions the union was compelled to declare a deadlock on 10 November 2011. Management misrepresented the situation by accusing the union of negotiating in bad faith. The union made it clear they could not proceed if P3 is non-negotiable.
Subsequently ICCPSOSFU attempted to make progress and reach agreement on other clauses but when they returned to the issue of wage increase on 9 May 2013 management simply reiterated that P3 must be included in the collective agreement and is non-negotiable.This blatantly contradicts the claims by The Coca-Cola Company that P3 is negotiable and not mandatory.
 
TCCC now claims it is not responsible for the long-running deadlock and that it is a matter for FEMSA, the new owners of Coca-Cola Philippines. This is despite the fact that TCCC introduced P3 and FEMSA inherited the problem.
 
Both local and national management have now started withdrawing union recognition.
 
Last week local management arranged a meeting with the union negotiating team but cancelled suddenly and bypassed them, instead holding a town hall (shop floor) meeting with union members to address them directly. In that meeting the company deliberately misinformed union members about the deadlock that has delayed their wage increments and benefits for 28 months. 
 
When the union requested a meeting with national management they were "warmly welcomed" to come to the capital Manila to resolve the issue. But in contradiction to company policy the union must pay its own travel costs. This is the first time Coca-Cola Philippines has refused to pay for union costs associated with travel to a meeting called by management. The reason? Since the union has rejected P3 it is no longer eligible. Only those unions that gave in and agreed to P3 will have their travel costs reimbursed.
 
That's "fair play" the Coca-Cola way.

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