Victorias to lay off 50% of work force under rehabilitation plan

Victorias Milling Co. Inc. will be laying off nearly half of its total workforce within the next few months as the sugar miller begins to implement its long-delayed rehabilitation program.

VMC chief operating officer Arthur Aguilar said the Negros-based sugar company will further streamline its present 2,446 total workforce to approximately 1,600 by the end of the rehabilitation plan. At its full work force complement, VMC had 3,921 employees before the retrenchment program took effect.

Last Jan. 7, VMC served notice of termination to 380 of its employees to take effect after 30 days. Majority of those laid off were from the railroad system under the Cane Supply and Transport Services Division which management decided to stop operating due to the very high operation and maintenance costs.

Aguilar said aside from employees of the railroad system, those from the other departments will be served their retrenchment notices by batches this year, depending on the availability of funding.

Those retrenched will receive a separation pay in full, equivalent to one and a half months of salary for every year of service. VMC will need about P100 million to pay off the laid-off workers.

The reduction of the employees was among the provisions included in the rehab plan but was started way back in 1997 with the phaseout of the agriculture area and the stoppage of its port and shipping operations in 1998.

The Securities and Exchange Commission (SEC) has directed its designated management committee in VMC to continue with the implementation of the rehab program presented as early as 1999 but which faced opposition from former VMC officials.

Nearing collapse with about P5 billion in debts, VMC has filed for a debt payment moratorium with the SEC in 1997 and was then subjected to a supervised rehabilitation program.