May - June 2014

THE BENECO WAY TO BRIGHTEN COMMUNITIES

LABOR - MANAGEMENT COOPERATION

Issue No. 9

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LMC @ WORK

Labor - Management Cooperation: The BENECO way to brighten communities

The workers and management of the Benguet Electric

Cooperative (BENECO) have since learned that a cooperative principle at work would help them deliver the high quality service that communities need.

BENECO was organized and registered in 1973 and was granted the sole franchise to operate an electric light and power service in Baguio and Benguet Province for a period of 50 years.

However, in a little more than a decade after its establishment, BENECO slumped to its lowest. Its system loss reached as high as 38.40% and collection was ineffi cient at 71.43%. Its debt ballooned to insurmountable amounts with National Electrifi cation Administration (NEA) arrearages amounting to P29M and National Power Corporation (NPC) arrearages amounting to P25M. Thus, moves to privatize the operations of BENECO were launched.

In defi ance, to these actions, BENECO’s employees and Board of Directors found themselves barricading the company premises. Attempts to take-over the operations of BENECO resulted to a legal struggle that continued until the July 16, 1990 killer quake that devastated the City of Baguio and other provinces.

The earthquake offered a respite to the legal battle as well as an opportunity for management and workers to redirect their joint efforts into rebuidling BENECO to be able to respond to the needs of the communities it is serving.

What enabled BENECO to spring back is the management and labor’s commitment to work together and “this effort saw the unoffi cial birth of labor-management initiative” in the company. This mechanism was formalized in 2007 into a Labor-Management Cooperation (LMC), a structure that allows labor and management to work hand-in-hand, through the promotional activities of the National Conciliation and Mediation Board (NCMB).

A CONSULTATIVE STRUCTURE

and Socials, and Social Responsibility. In all of the said committees, labor and management representation is balanced.

The structure allowed an open line of communication through the institutionalization of labor and management dialogues and Monday Morning Activity wherein LMC working committees and sub-committees report on updates or planned activities. The work of the LMC also became a regular agenda during department and organization meetings.

This practice cemented the foundation of a transparent leadership that boosted the level of mutual trust between labor and management, thus, resulting to breakthroughs including the decision to purchase a lot in Camp 7 for employee housing, the revision of the Table of Organization with corresponding salary increase, and the formulation and revision of the Employees’ Code of Ethics, among others.

BENECO LMC Structure

The BENECO LMC structure operates in two levels: the

Steering Committee and the six (6) Working Committees on Peacekeeping and Spiritual Development, Welfare and Livelihood, Productivity, Health and Wellness, Sports

A MEANS TO COMPETITIVENESS

Over time, the LMC has made positive impact on the industrial relations

and has contributed to the improvement of productivity in BENECO.

In the area of industrial relations, the mutual trust built through LMC led to the smooth negotiation of BENECO’s 2011-2016 Collective Bargaining Agreement. Moreover, no strikes or lockouts have been recorded in the Cooperative in the past (3) years. No grievances have been fi led owing to the platforms given for employees to air their concerns, make suggestions and freely express themselves in a manner that would remove the formality of salary, rank, grade, or position.

The programs jointly launched through LMC have increased productivity and relatively made an impact on BENECO’s competitiveness.

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LMC @ WORK

One of these programs is the Health and Wellness Committee’s quarterly fi tness test for linemen. Institutionalized through LMC, the program resulted to a more safety conscious workforce which strengthened the zero accident campaign of BENECO.

On the other hand, the Meter Reading Accuracy Test (MRAT), a training program for BENECO’s meter readers which is done every fi rst week of the month, resulted to more accurate reading of kilowatt hour meter consumption and less consumer complaints.

BENECO also launched its “OPIS KO, LINIS KO” to further improve the working environment inside the offi ce and to motivate employees to imbibe the value of cleanliness and orderliness.

Aside from these, through the LMC, the Health Care Assistance Fund was established to aid health-related needs of the employees and their families.

Ultimately, the LMC did not just create a harmonious work environment, it also catered to the physical, psychological, and personal well-being of each member. For labor and management, the programs that they have embarked on under the LMC, are seen to have improved personnel effi ciency and reduced absenteeism which yielded higher service quality as evidenced by fewer power interruptions and zero complaints.

BENECO, through its LMC’s Social Responsibility Working Committee,

has also reached out to help members of the communities.

It has provided Technical-Vocational skills to Abatan, Bugias, Benguet residents and students. It has also sponsored computer literacy and system orientation for teachers and spearheaded writing and leadership trainings for students and bookkeeping seminars for women-benefi ciaries.

BENECO has also consistenly held advocacy activities on climate change adaptation. It has participated in the yearly Earth Hour. It has also extended its efforts to greening the planet through the maintenance of tree nurseries and has activately participated in tree planting and conducted knowledge sharing on climate change and energy conservation in the different parts of the region.

A WAY TO TOUCH LIVES

BRIGADA ESKWELA. BENECO engineers and linemen help students gear up for the coming school year during the Brigada Eskwela activitities.

EDITORIAL BOARDExec. Director IV REYNALDO R. UBALDO

Publisher/ Adviser

Dep. Exec. Director SHIRLEY M. PASCUALProject Director

Director TERESITA E. AUDEAProject Manager

WILLIAM E. CALINAExecutive Editor

Dir. BRENDA ROSE ODSEY ESPERANZA P. RODRIGUEZ OTHELLO B. TONGIO JR. ELIZABETH C. ZAMBARRANO

Co- Editors

CRESENCIA PAWINGIContributor

MICHELLE BERNADETTE R. AGAGNILayout

is published every two months by the National Conciliation and Mediation Board

Department of Labor and Employment.All rights reserved.

Quality serviceQuality service is ourway of life

MILESTONES

* Commendations received from the consumers for the prompt delivery of goods and services

* Appreciation and citations on technical assistance given/provided to sister companies who suffered severe damages due to natural calamities like the Task Force Kapatid, Task Force CENPLECO, Task Force Naga, and Task Force MOPRECO * BENECO has been consistently awarded for the past three (3) years as a Class A+ electric cooperative by the National Electric Administration (NEA) due to its exemplary performance on the following effi ciency indicators:

- Collection Effi ciency - Delivery of Power Reliability- System Loss reduction - Participation on the Wholesale - Loan Amortization - Electricity Spot Market (WESM)

* Appreciation— Donation of lot for the Day Care Center in Barangay Alapang, La Trinidad, Benguet

OUTSTANDING LMC. BENECO labor and management representatives receive the 2011 Outstanding LMC Award from the National Conciliation and Mediation Board during the 8th LMC National Convention in Naga City.