DOLE, Albay mayor work to resolve Aleco labor dispute

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LEGAZPI CITY: Labor Secretary Rosalinda Baldoz has finally mediated the labor dispute of Albay Electric Cooperative (Aleco).

Mayor Noel Rosal of Legazpi City in a text message sent to The Manila Times said that Baldoz assumed jurisdiction over the case of Aleco to prevent ensure power supply.

“So tomorrow it will be business as usual because we were able to pay P40 million,” Rosal said.

Baldoz set a hearing on Janaury 27 to iron out the labor dispute infiltrated by undesirable elements according to labor officials in Bicol.


The graft-ridden power coop in Albay has an impending power disconnection threat from Philippine Electricity Market Corp. (PEMC) if the management fails to pay the P300-million bill within five days. A few days ago, Rosal mediated between Aleco management and employees protesting against the take-over by the San Miguel Corp. (SMC). He also told Lawyer Bart Rayco that their rally held at Aleco was illegal as they were given no mayor’s permit.

Earlier SMC deferred its take over of the ailing power coop following the previous chaos. In a letter Ellen Go, general manager, said that pursuant to the concession agreement between Aleco and SMC Global Power Holdings Corp., the concessionaire is scheduled to assume full operations and management of Aleco last January 7, 2014, however due to the ongoing disturbance and election of another interim board of directors despite of the execution of the concession agreement.

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  1. Tomorrow is today and it was not business as usual because the concession agreement that was executed by ALECO interim board members Atty. Vicente Fernandez and Bishop Joey Baylon with SMC is not enforceable since it was not the same concession agreement that was used in the bidding and disseminated to the member-consumers of ALECO. The significant and substantial changes in the signed concession agreement are: that it made the obligation of SMC to pay ALECO’s debts dependent on SMC’s capability to rehabilitate ALECO. The stipulation that no rate increase for DSM within 5 years will be implemented was also removed from the signed concession agreement. SMC should resort to legal action for specific performance before it can assert any right over ALECO.