public transportation

LRT1 operator lays off over 100 employees

Aika Rey

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LRT1 operator lays off over 100 employees

File photo from LRMC

(UPDATED) The retrenchment of nearly 20% of LRT1 employees will take effect September 15

Light Rail Manila Corporation (LRMC), the private operator of the Light Rail Transit Line 1 (LRT1), announced on Tuesday, August 11, that it will be laying off over 100 employees effective September 15.

LRMC spokesperson and communications head Jackie Gorospe told Rappler that nearly 20% of the total workforce will be laid off.

“Yes, at least 100 or close to 20% of [the] workforce [will be laid off]. Part of this 20%…also includes voluntary and mandatory retirement,” Gorospe said.

“The reduced size for the org will be as is for now. But we are not totally closing our doors to the possibility of rehiring them again. We’ll see how business will evolve in the next few years,” she added.

The LRT1 operator attributed the decision to a significant drop in ridership due to the coronavirus pandemic. The railway line is allowed to carry only 158 passengers per trip or 12% of its full capacity due to physical distancing protocols.

“LRMC management has been closely monitoring the COVID-19 pandemic situation from the start and has been taking appropriate measures, balancing its financial position while looking after its team members,” LRMC said in a statement on Tuesday.

“However, as LRMC has scaled down operations during the quarantine period and deferred some projects, the company recognizes the need to optimize human resources by reducing the size of its workforce,” it added.

LRMC said the retrenched workers will receive benefits stated under the law and “even above” as what is stipulated under the collective bargaining agreement (CBA) with the employees’ union.

According to law, employees retrenched to prevent losses are entitled to separation pay worth at least one-half month’s pay for every year of service or one-month pay, whichever is higher. The separation pay should also consider what is stated under the CBA for workers who are part of unions.

Last week, LRMC announced that the LRT1 Roosevelt Station will be closed for over 3 months starting September, to make way for the construction of the LRT-MRT common station. This is on top of the reduced capacity for the railway line.

Other railways to the rescue?

On Wednesday, August 12, Transportation Secretary Arthur Tugade said he wants other railway lines to absorb the retrenched employees who may be qualified.

The Metro Rail Transit Line 3 (MRT3) is under the Department of Transportation. The Light Rail Transit Authority (LRTA), which operates the LRT2, and the Philippine National Railways (PNR) are both government-owned and controlled corporations.

“Kawawa ang mga tao. Kung kailan pandemya, saka pa sila mawawalan ng trabaho (These people are unfortunate. They lost their jobs in the middle of a pandemic). We must look into the possibility of absorbing them as quickly as we can,” Tugade said.

“It’s the least and most humane thing we can do for them at this time,” he added.

LRTA spokesman Hernando Cabrera told Rappler that the LRT2 has not considered layoffs, so far.

Tugade also ordered PNR General Manager Junn Magno and Transportation Assistant Secretary Fidel Cruz to review the health and safety protocols being implemented by LRMC.

The transportation chief said he wants LRMC to provide swab testing for all LRT1 personnel. At the MRT3, all employees, including workers from maintenance provider Sumitomo-MHI-TESP, were swab-tested after an outbreak. – Rappler.com

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Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.