Kawasaki Workers Face Lockout Threat Amid Wage Dispute

The management of Kawasaki Motors Philippines Corp. has filed a notice of lockout before the National Conciliation and Mediation Board (NCMB) on August 4, accusing 289 union workers of unfair labor practices. The workers, representing the Kawasaki United Labor Union (Kulu), have been on strike since May 21, demanding a 10.5 percent wage increase. The company has offered only 5 percent, citing financial losses from the pandemic. The tension between management and workers has escalated, with the company maintaining that the workers' boycott of company events constitutes a breach of the collective bargaining agreement.

Key Takeaways:

• 289 union workers of Kawasaki Motors Philippines Corp. may be locked out of work after management filed a notice of lockout on August 4.
• The workers, represented by the Kawasaki United Labor Union (Kulu), have been on strike since May 21, demanding a 10.5 percent wage increase.
• The company has offered only 5 percent, citing financial losses from the pandemic, and maintains that the workers' boycott of company events is a breach of the collective bargaining agreement.
• Under Rule XXII of the Labor Code, employers may declare a lockout in cases of collective bargaining deadlocks or alleged unfair labor practices, with a mandatory cooling-off period of 30 days or 15 days, depending on the case.
• The NCMB is expected to mediate and help both parties arrive at an amicable settlement during the cooling-off period.
• The union is awaiting guidance from their legal team before deciding on their next steps regarding the notice of lockout.

Statistics:

• 289: Number of union workers facing lockout threat.
• 10.5 percent: Wage increase demanded by the union workers.
• 5 percent: Wage increase offered by the company.
• 2022: Year in which the collective bargaining agreement was signed by the union and management.
• May 21, 2024: Date on which the strike began.
• July 24, 2024: Date of the anniversary celebration boycotted by the union workers.
• June 15, 2024: Date of the Sportsfest event boycotted by the union workers.
• April 30, 2025: Date on which the company announced a mandatory overtime schedule to catch up on production.
• 30 days/15 days: Cooling-off periods under Rule XXII of the Labor Code.

Sources:

• Kawasaki management's statement to the Labor department's National Conciliation and Mediation Board (NCMB) on August 4.
• Statement by John Bonifacio, Kawasaki's lawyer.
• Social media post by the Kawasaki United Labor Union (Kulu).