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    PPA hands off Dumaguete port row
    By VG Cabuag
    Reporter

    THE Philippine Ports Authority (PPA) has asked Malacañang to take over the resolution of the labor dispute at Dumaguete Port in the central part of the country, after the situation went from bad to worse, while the state firm and shipping companies are counting their losses.

    PPA general manager Oscar Sevilla said on Friday they had already distanced themselves from the labor dispute issue, which has become “a police matter” and after the local government unit (LGU) joined the fray and sided with the workers.

    “The Cabinet superceded PPA [on the Dumaguete labor dispute issue]; they disapproved of the way we were handling it because, since we have the law behind us, we want to disperse the strikers,” Sevilla said. He added the police authorities are yet to make a move against the strikers.

    He said the strikers are now in full control of the port and the Dumaguete port manager has left for safety after he reportedly started getting death threats.

    “It depends on how the police would settle the issue. What we want is that the strikers be removed and Prudential [Customs and Brokerage Services Inc.] be allowed to render their cargo-handling service since they won the bidding.”

    Sevilla said the LGU sided with the 151 striking workers for them to be absorbed by the new cargo handler.

    As a result of the dispute, losses are piling up for both PPA and the shipping lines, which had to divert their cargoes to the private ports, such as Dumaguete Coconut Mill port.

    At the moment, only passengers are allowed to use the port. Shipping lines have reportedly incurred a loss of about P6 million a week since the start of the dispute.

    According to estimates, Sulpicio Lines is losing some P2 million from payment of cargoes to be shipped out of Dumaguete while the Aboitiz-owned SuperFerry is losing some P1.6 million.

    Smaller firms such as George and Peter Lines, Cokaliong and Alesson Shipping Lines lose anywhere between P300,000 and P800,000 a week.

    PPA, on the other hand, is also losing some P420,000 a week from port charges like usage and wharfage fees, and its 10-percent share from the proceeds of cargo handling operations.

    The strike is already affecting the movement of goods along the Strong Republic Nautical Highway since Dumaguete Port is a major link in the route, one of the flagship projects of the Arroyo administration.

    Since March 13, Dumaguete port has been closed to cargo.

    In October last year workers affiliated with the Associated Labor Union-Trade Union Congress of the Philippines used the on-and-off style of a picket, before eventually gaining control of the port in March just as the winning bidder was supposed to take over the operations from the government.

    In December 2006, Prudential won the cargo-handling contract for the port after PPA took over the cargo-handling services in Dumaguete in September 2002.

    Prudential has not absorbed hundreds of members of the union, leading to the mass action. The company has not acknowledged the collective bargaining agreement between the workers and the former employer, Cipres Stevedoring and Arrastre Inc., claiming the employment of porters is a management prerogative.

    PPA has allocated P395.7 million for the Dumaguete Port expansion project, one of its biggest budget line items last year. The project involves privatization of cargo-handling services for domestic and international operations once the construction has been completed.

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