QUEZON CITY – Kowloon Management broke its silence today regarding the ongoing labor dispute with the KMU-Glowhrain union, citing a “critical” economic situation that threatens the company’s survival. While denying allegations of ignoring workers, management warned that a “slowdown strike” and physical blockades are driving away franchisees and leading to massive food waste.
Countering Claims of Neglect
In an official statement, the company refuted claims that it has turned a deaf ear to labor demands. Management confirmed it is actively participating in mediation sessions through the National Conciliation and Mediation Board (NCMB).
Kowloon revealed that several union demands have already been met, including:
- 17 Days Vacation Leave
- 15 Days Sick Leave (if unused convertible to cash.)
- 1 Day Birthday Leave with cash incentive
- Mid-year bonus
- Early Retirement for employees with 15 years of continuous service (24 days per year of service)
- 180 union leave days cumulative.
“Our goal is reconciliation, not litigation,” the management stated, noting that they have refrained from filing legal petitions to declare the current strike illegal or terminate involved employees, despite what they characterize as a “premature” work stoppage.
The ₱18 vs. ₱25 Deadlock
The core of the dispute rests on a daily wage increase. While the union is holding firm at ₱25.00, Kowloon Management maintains that the global oil crisis has made such a figure impossible.
The company reported a sharp rise in production costs and a decline in customers, leading many franchisees to pull out.
Because 80% of Kowloon’s profits are derived from its franchisees, management argues that their current offer of ₱13.00—which they are attempting to stretch to ₱18.00 through internal cost-cutting—is the absolute ceiling for financial sustainability.
Operational Paralyzation and Food Waste
The standoff has reached a breaking point at the factory gates. Management reported that a blockade is currently preventing staff and delivery personnel from entering the premises.
“Right now, 5,000 pieces of siopao are about to spoil because we are being denied entry,” the statement read.
“We intended to donate these to charity or distribute them to the workers, but the blockade prevents us from even salvaging the food.”
The company further noted that the union’s refusal to perform overtime has resulted in unserved orders, further incentivizing franchisees to terminate their contracts.
A Call for Realism
Kowloon Management closed its statement by urging union leadership to return to the bargaining table with a “realistic view” of the current economic climate such as the escalating production and logistical costs, significant decline in customer purchasing power and intent of franchisees to withdraw, who represent 80% of Kowloon’s total profit.
“We are not anti-union; we are fighting for the survival of the business,” the company said. “If the company cannot sustain its operations, there will be no jobs left to negotiate for.”
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