Dole workers assured on Itochu deal
September 26, 2012 at 17:10
KORONADAL CITY — Thousands of workers of Dole Philippines, Inc. (Dolefil) have been assured of their jobs “for now” following the mother company’s sale to Japanese trading giant Itochu Corp., a labor leader said on Thursday last week.
Francis R. Gales, president of the Labor Employees Association of Dolefil-Polomolok Hourlies (LEAD-PH), said the employees were formally informed of the deal in a special meeting called by the management on Wednesday afternoon. Simon Denye, Dolefil managing director, addressed two batches of company employees at the firm’s gymnasium.
“It’s business as usual for the company despite the [looming] change in ownership. For now, we have been assured that there’s no retrenchment or offers of termination of service,” Mr. Gales said in an interview.
LEAD-PH represents around 3,600 employees.
Mr. Gales said the collective bargaining agreement (CBA) “will remain in place” and that Mr. Denye assured the workers it will be respected until its expiration. The five-year CBA of the management and LEAD-PH is now in its second year.
A source who attended the meeting said that Mr. Denye has also issued an internal memorandum assuring workers and contractors of continuity of operation. “This is a welcome development because Itochu is a giant trading company,” the source said, noting, “It’s business as usual for us.”
Dolefil, based in nearby Polomolok, South Cotabato, is the largest multinational company operating in Central Mindanao, or Region 12, since 1963. It has pineapple plantations in at least 13,000 hectares in the province operating on lease agreements. This is the largest pineapple plantation of parent Dole Food Co., Inc. (Dole) in Asia.
Dolefil also produces banana and papaya in another 13,000 hectares of leased lands in South Cotabato and other parts of Mindanao through its Stanfilco division.
In 2006, Dolefil acquired the bankrupt T’boli Agro Industrial Development, Inc., which has a pineapple cannery in Surallah, South Cotabato and a contracted pineapple plantation area estimated to be at least at 2,000 hectares in Surallah and nearby T’boli town.
Mr. Gales said that Dolefil will form a team, including those from the finance and marketing divisions, to work out the transition scheme with Itochu, formerly known as C. Itoh.
In a Sept. 17 statement, Dole, chaired by David Murdock, announced that it has signed a definitive agreement with Itochu for the sale of Dole’s worldwide packaged foods and Asia fresh produce businesses for $1.685 billion in cash.
This proposed transaction is a result of Dole’s previously announced strategic business review process, and is subject to Dole stockholders’ approval and customary regulatory approvals in multiple countries.
Cash proceeds from the transaction will be used by Dole for debt reduction, to pay deal-related expenses, and for restructuring and other corporate purposes. The transaction is expected to be completed next quarter, subject to regulatory approvals. The company intends to disclose further information pertaining to this transaction and its strategic business review process, as required or appropriate, in the future, the Dole statement said.
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