MANILA, Philippines – Workers of semiconductor firm Nexperia Philippines lifted their strike on Saturday, March 9, after the management agreed to implement a wage increase and reinstate two terminated union officials.
Nexperia Philippines Inc. Workers Union (NPIWU) and the management agreed to a P50 daily wage increase to be implemented over three years.
The two parties also agreed to reinstate two union officials, whose employment was terminated in December amid ongoing negotiations for the collective bargaining agreement (CBA). A non-retaliation clause is also in place to protect affected workers.
For NPIWU president Mary Ann Castillo, the agreement was a win for the workers and highlighted the importance of workers unions in the country.
“It [unionizing] is a big deal because workers don’t just get raises, especially the contractual employees, who are only paid the region’s minimum wage rate,” she said in Filipino.
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The NPIWU played a crucial role for Castillo. When she started working for Nexperia Philippines in the ’80s, she made just around P112 a day.
She told Rappler that operators were required man two machines at a time.
Semiconductors are one of the country’s top exports today. In 2023, the Philippines sent $3.1 billion worth of semiconductors and integrated circuits to the United States alone, comprising 23.3% of Manila’s total exports to the North American country.
Castillo did not receive her first raise as a regular worker until the passage of the Wage Rationalization Act was passed in 1989. But she recalled receiving another increase because of the CBA forged by the NPIWU and management.
“So dadagdag pa kung ano yung increase ko ng pagka-regular. Kasi three years ‘yung CBA namin. Nakalagay naman natin sa agreement na ito yung magiging increase ng bawat na regular. Parang aangat ka dun sa minimum wage,” she said.
(So it added to whatever raise I got when I was regularized, because our CBA is effective for three years. The agreement stated how much the wage hike for regular employees should be, in a way it should be above the minimum wage.)
Castillo eventually became NPIWU’s president in 2015.
CBA negotiations
When it was time to begin negotiations for the next CBA, Castillo recalled that the union initially asked to increase workers’ wages by P150 per day.
“During negotiation, hindi pa sila nalagay ng amount. Pero nahirapan kami dahil ipinipilit nila ng low volume,” she said.
(During negotiations, they [management] did not indicate an amount [for wage increase]. But we already had a hard time because they insisted we were producing low volumes [of products].)
While negotiations were underway, eight workers — including three union officials — were laid off as Nexperia Philippines announced plans to relocate its sensors department to Thailand. Management cited low volumes as the reason for the lay-offs, but Castillo said the workers did not buy this.
“Hindi naman bumababa yung output namin. Dahil umabot pa kami ng 7 million a day yung daily output namin,” she said.
(The volume of our output did not even decrease. Our daily output even reached 7 million [products].)
Castillo said the two parties eventually agreed in October that the terminated workers would be the first to be rehired.
Nexperia Philippines would then implement a moratorium on lay-offs until the end of the year, while the NPIWU filed a no strike notice.
Despite striking deals for the laid-off workers, CBA negotiations began reaching a deadlock when management said they were only willing to increase wages by P550 a month. Castillo said they tried to negotiate for a P50 per day raise instead, just to cover workers’ transportation costs.
She also noted that the proposed P550 increase was lower than the wage hikes in Nexperia’s previous CBAs.
When the Regional Tripartite Board in CALABARZON raised the minimum wage to P560, Castillo said management tried to lower its proposed wage hike to P450, citing a lack of budget due to the wage order.
Things took an ugly turn in December 2024, when management terminated the employment of Castillo and three other labor union officials.
The office of Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma assumed jurisdiction of the labor dispute on February 5. Article 278 of the Labor Code allows the Labor Chief to assume jurisdiction of a dispute in industries that are considered “indispensable to the national interest.”
In his return-to-work order issued Friday, March 7, DOLE said NPIWU and management failed to settle on an agreement after several conferences, including one held a day before the strike.
Castillo said around 500 workers were inside the chipmaker’s plant in Cabuyao, Laguna, while around 300 to 400 workers were defending the picket line outside.
According to Castillo, management had shut off air conditioning and water access for those striking inside the plant. Meanwhile, company security blocked allies and supporters who tried to bring food, water and medicine for employees inside.
No one else but ourselves
After the strike was lifted at 1 PM on Saturday, March 8, Nexperia Philippines announced it would resume operations under a skeletal workforce.
In a statement, Nexperia said its clinic, canteen and other services for workers will also resume operations.
Since it was her first time managing a strike, Castillo admitted that one of the biggest challenges was keeping her colleagues’ spirits up.
“Sabi natin sa mga tao, kung hindi na kaya, tanggapin nalang yung offer na yan, sige na, kaysa naman nahihirapan kayo diyan,” she said.
(We told the workers if you can no longer do this [strike], let’s accept that offer instead of letting you suffer there [inside].)
Despite the implementation of the P50 pay hike in tranches, Castillo still considered the strike a win for workers. She hopes the NPIWU’s efforts will inspire other workers to organize and form unions.
“You realize that no one else will fight for your rights but your fellow workers,” she said in Filipino.
Article III, Section 8 of the 1987 Constitution says all workers have the right to self-organization, while the Philippine Labor Code also indicates that the state shall assure workers’ rights to “collective bargaining, security of tenure, and just and humane conditions of work.”
Despite this, a 2024 Human Rights Watch report found that labor leaders continue to fall prey to red-tagging, posing a grave threat to workers’ rights in the Philippines.
The Center of Trade Union and Human Rights described Nexperia workers’ strike as the “litmus test for the government in upholding labor and human rights.”
Rappler requested Nexperia Philippines’ comment on the conditions workers went through during the strike but did not get a reply. We will update this story once we receive their response. – Rappler.com