This summer, while many of us enjoy ice cream, drink beer and eat a wide variety of low-fat foods, it is ironic that workers in the Philippines who make a vital ingredient for these and other food products are growing hungry. Since March 1999, the workers at the Shemberg Marketing Corporation, Seaweeds Division have been on strike to protest the dismissal of 15 of their trade union leaders, and their replacement by "contractuals" working for a half of what they used to receive.
The Shemberg Seaweeds Division produces a product called "carageenan", which is an extract of the euchema seaweed (of red algae). Carageenan is used as an enhancer, emulsifier, thickening, binding and stabilizing agent in many meat, dairy, baking, pharmacology and other industrial products.
Some examples of the use of carageenan are:
The Philippines supplies 80% of the world's supply of carageenan powder, and Shemberg Marketing is the leading manufacturer of carageenan in the Philippines. Furthermore, the demand for carageenan has historically been growing by 5-7% annually. With this assured market position, Shemberg Marketing is relatively immune to the uncertainties most export-oriented companies in the Philippines face. Shemberg has even recently made heavy investments in new plant capacity to meet the growing market for carageenan.
While the demand for carageenan is growing constantly, the supply of euchema seaweed fluctuates a lot during the year. Hundreds of thousands of Filipinos get their income, at least for parts of the year, by gathering seaweeds. So, during certain seasons, the supply is relatively low. Shemberg Marketing wanted to reduce their costs in two ways: one, by simply closing the factory for a few months a year (effectively reducing their employees to seasonal workers), and replacing expensive unionized workers with contractuals.
The Shemberg Employees Independent Union (SEIU) opposed the move to close the factory for a few months - when the company announced its plan in February 1998. The conflict on this issue resulted in an 11-day strike by the SEIU in September 1998. The workers went back to work when the government (through the Department of Labor and Employment) assumed jurisdiction over the dispute. In March 1999, before any decision was handed down by the government, the Shemberg management dismissed 15 leaders of the SEIU. The SEIU went on strike in response to this - they demand that all of their members be reinstated by the Shemberg management.
Four months later, the workers are still on strike, but the management of Shemberg Marketing has hardened its stance towards the union. Shemberg has managed to use the media in Cebu to spread its version of events, and has effectively blocked any independent press coverage of the strike. And Shemberg apparently has the resources to wait out the strike, and simply starve the workers into submission.
The SEIU workers are calling for international pressure to push the Shemberg management to resume negotiations with the workers, reinstate their leaders and settle the dispute.
Additional References:
Background to the Strike
We appeal to you to send e-mails or faxes in support of the striking workers. Please furnish a copy of your e-mails to PESC-KSP (philsol@knoware.nl), CLEAR (ccenter@cvis.net.ph) and the SEIU (fgmariveles@yahoo.com). Below are sample letters which you could use.
Fax or e-mail your letters of concern to the following:
His Excellency Joseph Ejercito Estrada
President, Republic of the Philippines
Malacanang Palace, Manila
Philippines
fax +63-2-7342109
E-mail: erap@erap.com
Department of Labor and Employment (DOLE)
DOLE Building
Intramuros, Manila, Philippines
fax: +632-5275807
E-mail: dolemis@mnl.sequel.net
Philippine Daily Inquirer
E-mail: feedback@inquirer.com.ph
Manila Times
E-mail: webmaster@manilatimes.net
Mr. Benson U. Dakay
Chief Executive Officer
Shemberg Marketing Corporation
Fax No. (6332) 346-1892, 346-0863
E-mail: Shemberg@philexport.com
Dear Sir:
We have learned of the dispute between your company, Shemberg Marketing Corporation - Seaweeds Division and the union Shemberg Employees Independent Union (SEIU) which been on-going since April 1999. This strike was the direct result of the termination of 15 union officials by your company.
We understand that the strike has greatly affected your company as this means great loss in terms of money (foreign currency since you have markets outside the country). We also understand that the workers' families continue to suffer because of this strike.
Given the suffering and the loss on both sides, we enjoin you to immediately settle this dispute in a manner which is beneficial to all the parties concerned.
Very truly yours,
We have learned of the strike which is going on at the Shemberg Marketing Corporation- Seaweeds Division, in Mandaue City, which broke out when the company's management dismissed 15 leaders of the Shemberg Employees Independent Union. The strike has caused a lot of suffering among the workers and their families, as well as losses for the company and the economy.
We appeal to you to intervene in order to reinstate these trade union leaders and get both parties to settle their differences through negotiations.
Sincerely,
