1,000 PNCC workers to receive separation pay.
Date: Wednesday, 16 December 2009
Category: Publication - Overseas
Philippine Daily Inquirer
by Nina Calleja

THE SOUTH LUZON TOLLWAY CORP. (SLTC) yesterday said some 1,000 Philipine National Construction Corp. (PNCC) workers who would be laid off once a private firm takes over the management and operations of the South Luzon Expressway (SLEx) would receive a separation pay.

At the same time, SLTC president Issac David vowed the takeover would not result ina tool rate hike or traffic grid locks on the expressway.

SLTC is financing the design, construction and rehabilitation from Alabang to Calamba. The company is a joint venture between Malaysian infrastructure giant MTD Capital Bhd., which owns 80% of SLTC shares, and PNCC which owns the remaining shares.

In an interview, David said SLTC has set asite P110 millions for the benefits of PNCC workers who would be laid off once a private firm, Manila Toll Expressway System (MATES), takes over SLEx.

The takeover was supposed to take place on Monday but a Pasig judge granted a PNCC petition seeking the issuance of a temporary restraining order. The TRO, however, will be effective for only three days.

"That money has been available since March and was only on time deposit. PNCC know about that. We would not want any employees of PNCC to be aggrieved on this (matter)," David said.

He assured PNCC employees that SLTC and MATES would be hiring at least 1,500 personnel once the latter takes over the operations of the expressway. He added that they have already hired some trained PNCC workers.

David explained that there was nothing illegal about their plan to take over SLEx because this was agreed upon after the 30-year consession period granted to PNCC expired in April 2007.

He said that under the Suplemental Toll Operation Agreement which was signed by the Toll Regulatory Board, PNCC, SLTC, and MATES, once the franchise given to PNCC expired, MATES would take over the government company's duties.

David also claimed that PNCC failed to protect SLEx from cases of pilferage and overloaded truck s which damaged the expressway.

"If you not able to protect our investment, the most prudent thing to do is to protect it ourselves," he said.



printer friendly create pdf of this news item
Bursa Malaysia
- Annual Audited Accounts