Negros Navigation Company, Inc.

November 12, 1999 PSE CIRCULAR FOR BROKERS NO. 2887-99 SUBJECT : Negros Navigation Company, Inc . Further to Circular for Brokers No. 2762-99 dated October 27, 1999 relative to Negros Navigation Company, Inc.'s ("NN") ongoing CBA negotiation, NN submitted to the Exchange an update on the said negotiation, which reads as follows: LexLib "The Department of Labor and Employment (DOLE) Assumes Jurisdiction Over the Entire Labor Dispute at Negros Navigation Company, Inc . DOLE Secretary Bienvenido E. Laguesma issued the assumption order enjoining union and management to stage any strike or lock-out. He cited that Nenaco's operations is vital to transportation, trade and commerce to and from its different ports of call, any disruption of which will have adverse social and economic consequences. DOLE views the instant labor dispute as imbued with national and public interest which warrants its intervention." Attached is a copy of the assumption order. For your information. LexLib (SGD.) MARIA ISABEL T. GARCIA OIC, Listings and Disclosure Group ATTACHMENT Republic of the Philippines DEPARTMENT OF LABOR AND EMPLOYMENT Intramuros, Manila In Re : Labor Dispute at Negros Navigation Co., Inc. OS-AJ-0026-99 NCMB-RBVI-NS-10-011-99 ORDER On 08 October 1999, the Iloilo-Negros Employees and Laborers Union (the Union) filed a Notice of Strike against Negros Navigation Co., Inc. (the Company) citing deadlock in collective bargaining negotiations as the ground therefor. Conciliation conferences were thereafter undertaken by the National Conciliation and Mediation Board towards a peaceful resolution to the labor controversy. These efforts notwithstanding, a settlement is not in sight. In the meantime, a strike appears imminent with the Union submitting on 03 November 1999 the results of the strike vote referendum which overwhelmingly supports the conduct of a strike. The Company is engaged in interisland shipping for passenger and cargo transport. It operates twelve (12) vessels serving eighteen (18) ports of call in the Visayas, Mindanao and Manila as well as renders ferry service between the cities of Iloilo and Bacolod. It has in its employ some 1,800 employees. In 1998, the Company transported over 3 million passengers and over 2 million tons of cargo. The Company's operations is vital to transportation, trade and commerce to and from its different ports of call, any disruption of which will have adverse social and economic consequences. Considering the vital role that sea transport provided by the Company plays in the country's social and economic life, this Office views the instant labor dispute as imbued with national and public interest which warrants Our intervention. This Office has in the past similarly viewed previous labor dispute, in the shipping industry in this light. LexLib At this point when the country is on the road to economic recovery, it is the primordial concern of this Office to avoid unnecessary work stoppages that negatively impact on the economy, especially so when an alternative mechanism to resolve the differences between the parties is available. The intervention of this Office becomes imperative on account of the magnitude of the adverse effects of any work stoppage at the Company to the local and national economy. Under the present state of things, the exercise of the power of this Office under Article 263 (g) of the Labor Code, as amended, is warranted. cdlex WHEREFORE, this Office hereby assumes jurisdiction over the entire labor dispute at Negros Navigation Co., Inc. pursuant to Article 263 (g) of the Labor Code, as amended. prcd Accordingly, any strike of lockout is hereby enjoined. Likewise, the parties are directed to cease and desist from committing any act that will exacerbate the situation. Finally, the parties are directed to submit their respective position papers and evidences within ten (10) days from receipt hereof. llcd SO ORDERED. Manila, Philippines. 4 November 1999. (SGD.) BIENVENIDO E. LAGUESMA Secretary