Eventually, it’s the customer

THE ongoing negotiations between the Cagayan Electric Power and Light Co. (Cepalco) and its employees’ labor union should be a major concern for all customers of the power firm. The Cepalco-union CBA has a term of five years but its economic provisions are subject to new negotiations on the third of the five-year term.

As reported in the local news, the demands of the union include profit sharing, more salary increases, medical benefits, signing bonuses, longevity pay, and such other items that would directly benefit its members economically.
On the other hand, the Cepalco management, obviously conscious of the effects of economic package on its bottom line have offered just a portion of the demanded levels. At first glance, the negotiations may be insignificant from the point of view of the power customer whose main concern may only the availability of power supply.

The power customer’s concern may well be focused only on the effects of a possible employees’ strike in case the negotiations bog down considering that the union has already filed a notice of strike with the National Conciliation and Mediation Board.

But should the ordinary power customer of Cepalco be concerned about the resolution of the reported deadlock in negotiations? And at what levels should the demands be granted?

I say “yes” because everything that the company grants to its employees be it in the form of cash or in kind will eventually trickle down into the electric rate that each and every customer of Cepalco pays.

In simple terms, the building blocks that comprise the electric rate of Cepalco include, naturally, its operating expenses, aside from depreciation which is a major item, that make up these blocks. And, salaries and wages and related expenses, e.g., bonuses, allowances, longevity pay, are a major component of the operating expenses of a company.

At this perspective, it will not be simply how much Cepalco can afford to give its employees, but how much the power consumers of the power firm can.

I just hope the union and the management of Cepalco will do a more sincere balancing act so that the interests of the firm’s power consumers are also taken into consideration in whatever will finally be agreed upon.

I’m sure the union recognizes that a strike is counterproductive. The company on the other hand will also not buckle down to threats of a strike because it has the resources to fully prepare for any eventuality. But given the posturing of the two sides, are the interests of the customers the primary factor in your respective plans?

(Lawyer Egay Uy is a former Cepalco vice president.)