AMC, unions agree on support package for laid off workers

Alaska Milk Corp. (AMC) said it had come to an agreement with its union members on the terms of the company’s support package for around 200 employees who will lose their jobs starting next month.

The package includes severance pay almost double of what is mandated by law, an added gratuity pay, and continued health coverage for both them and their respective dependents, AMC said in a statement on Friday.

“We thank the unions in AMC for their openness to dialogue, which resulted in a suitable package for the affected employees. Both management and the unions have always had the welfare of our workers in mind as the most important aspect in this transition,” said Maria Angela Esquivel, Corporate Affairs Director at AMC.

Outplacement

AMC has partnered with global outplacement service Lee Hecht Harrison (LHH) to help affected workers eventually find a new job. Outplacement is defined as a service that assists a departing employee with obtaining a new job or transitioning to a new career.

“Proper job transition support must also include practical help, which is why we facilitated business and resume building seminars, as well as job fairs for the affected employees of AMC,” LHH said in the same statement.

“Especially with our current climate, it’s great that companies like AMC are taking a proactive approach to employee care when they plan their restructuring,” LHH added.

Directive

Local milk producer AMC said back in May that it will be laying off about 200 of its employees this July, a choice that it said it had to make to keep the jobs longer for the rest of its workforce in its manufacturing plant in Laguna.

AMC did not explain in detail the business factors that prompted this decision. However, it said in a statement back then that this was in line with the directive of its parent company—Royal FrieslandCampina—to “optimize all of its business operations worldwide.”

“After a comprehensive evaluation on our plant’s operations, we will unfortunately have to let go of about 200 employees who are currently holding redundant positions at some departments in our San Pedro Laguna plant effective 1 July 2021,” said AMC.

“This change, though painful, will ensure jobs for the majority of our employees for a longer period,” it added.

AMC had some 1,100 employees in its Laguna plant, which will be reduced to around 900 after the layoff. INQ