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HISTORY OF THE DEVELOPMENT BANK OF THE PHILIPPINES

EMPLOYEES UNION The Development Bank of the Philippines Employees Union (DBPEU) is one of

the oldest public sector labor unions in the country. Its precursor, the Rehabilitation

Finance Corporation Employees Association (RFCEA) was formed on January 20, 1954

under Certificate of Registration No. 426-IP issued by the then-Department of Labor

pursuant to the provisions of Republic Act No. 8751. The National Association of Trade

Unions (NATU), a private sector trade organization headed by Atty. Ignacio P. Lacsina,

helped in RFCEA’s establishment2. The RFCEA became known as DBPEU in 1958

following the conversion of the Rehabilitation Finance Corporation (RFC) into the

Development Bank of the Philippines (DBP) as mandated by Republic Act No. 20813 that

took effect upon its approval on June 14, 1958.

Under the wing of NATU, considered the largest trade union organization in the

country in the 1960s4, RFCEA used both peaceful and non-peaceful means in its struggle

for the rights and benefits of its members as well as to gain acceptance by RFC

management as the sole and rightful representative of RFC employees. While prevailing

labor laws at the time, such as Commonwealth Act No. 2135 and Republic Act No. 875

recognized the right of labor unions to bargain by providing, among others, the general

framework and procedures of collective bargaining, none legally compelled employers

to reach agreements with their employees6. As such, the Board of Governors in 1957

sought a legal opinion from the RFC Chief Legal Counsel on employees’ right to form a

union and seek a collective bargaining agreement (CBA) before RFCEA’s demands were

acted upon7. The first CBA between the parties was signed in February 12, 1958, wherein

a number of new and enhanced benefits were worked out and incorporated in the

1 “An Act to Promote Industrial Peace and for Other Purposes” 2 Añonuevo, Carlos Antonio Q., “History of Public Sector Unionism in the Philippines,” Friedrich Ebert Stiftung Manila Office 3 “An Act to Amend Republic Act Numbered Eighty-Five and Other Pertinent Laws, to Provide Facilities for Intermediate and Long-Term Credit by Converting the Rehabilitation Finance Corporation into the Development Bank of the Philippines, Authorizing the Said Bank to Aid in the Establishment of Provincial and City Private Development Banks, and for Other Purposes” 4 Fuller, Ken, “Labor Discord 1950-2000” (www.tribune.net.ph) 5 “An Act to Define and Regulate Legitimate Labor Organizations” 6 Cayetano, Renato L., “Collective Bargaining: Concepts and Practices” Philippine Law Journal, p. 75 (1985) 7 Board Resolution No. 571 dated January 14, 1958

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package already being enjoyed by RFC employees. In its Constitution and By-Laws

adopted by the general membership on September 18, 1958, the RFCEA (by then already

called “DBPEU”) renounced strikes and other non-peaceful concerted actions8. When a

new CBA was entered into and executed by the DBPEU and the Bank on December 29,

1961 after a series of negotiations, both sides also signed a separate agreement which in

effect affirmed DBPEU’s position that it will not resort to strikes and other non-peaceful

actions in attaining its objectives9. The agreement, however, did not bring about lasting

industrial peace in the Bank as DBPEU officers led by President Delia P. Medina, with

the support of NATU, staged strikes in July 2, 1963 and again in March 4-14, 196410 over

their grievances against the Bank — violating their contractual obligations.

President Medina was succeeded by Mr. Rodolfo A. Paet, whose administration

entered into another CBA with DBP (represented by Chairman Pablo Lorenzo) on March

8, 1965, effective from March 20, 1964 to March 19, 196611. During his term (his first),

President Paet had the following accomplishments: the deletion of the strike

renunciation clause from the DBPEU Constitution and By-Laws, improvement of

benefits being enjoyed by employees (e.g., cost of living allowance, salary adjustments

for employees from division chief and lower ranks, etc.), grant of new benefits

(hospitalization), provision for DBP housing project (West Triangle area in Quezon City,

where the units were raffled off to Bank employees on April 13, 1965), establishment of

union shop and securing a legal opinion declaring DBP as performing proprietary

functions12. The idea of forming a credit union in the Bank was first broached during this

time. In the DBPEU biennial convention held on April 10, 1965, delegates approved

major amendments in the Constitution and By-Laws as follows: (1) increase in the

number of national directorate officers; (2) provision of a union jury; and (3) provision

for an official publication. Resolutions were likewise passed that called for, among

others: provisions for an interregnum in the new DBPEU administration so as to effect

an orderly transition; Bank management to adopt a Provident Fund similar to that of

8 DBP Employees Union-NATU v. Hon. Jesus Y. Perez, the Sheriff of the City of Manila and Development Bank of the Philippines, G.R. No. L-22584 May 30, 1972; Development Bank of the Philippines v. DBP Employees Union, Delia P. Medina as President of DBPEU, and National Trade Union (NATU), G.R. No. L-23083 May 30, 1972 9 Ibid. 10 Ibid. 11 Collective Bargaining Agreement by and between the DBP and DBPEU, March 1965 12 “Union Gears for 1965 Projections,” DBP Bulletin, December 1964, Vol. III, No. 6, p. 11

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Philippine National Bank (PNB); and a move for the establishment of housing projects in

the Branches13.

In the national elections held on April 20, 1965, Mr. Quintin B. Hernandez (a

former Director) defeated President Paet to take the DBPEU top post14. His

administration, with the backing of Atty. Lacsina of NATU, was embroiled in

contentious negotiations for a new CBA with the Management Negotiating Panel

chaired by Governor Wenceslao Pascual the following year. In a letter to the Board of

Governors dated August 31, 1966, President Hernandez scored the Board’s apparent

hard-line position on the counter-proposals of the DBPEU-NATU panel — especially on

DBPEU’s demand that DBP officials and employees be exempted from the coverage of

the Civil Service Law (Republic Act No. 2260) and rules — and informed them that the

DBPEU would use its “ultimate legal weapon to enforce its legitimate demands”15. The

Bank filed a petition for hearing and issuance of restraining order against DBPEU-

NATU’s threat to declare a labor strike before the Court of First Instance of Manila,

which it granted on September 2, 196616. Governor Pascual, in his reply to President

Hernandez dated September 5, 1966, stressed that management was in fact “meeting

half-way DBPEU-NATU’s proposals” such as those covering employee benefits — but in

the context of the Bank’s projected performance that year17. The labor dispute reached

the Office of the President (OP), which expressed its concern on the possible ill-effects of

DBPEU-NATU’s threat to strike (which it announced in a supplementary issue of the

Union Star18, the official publication of the DBPEU) and certified the dispute to the Court

of Industrial Relations (CIR) for arbitration. However, the OP later on withdrew its

certification as the case had been submitted to the Mediation and Conciliation Division

of the Department of Labor for resolution. The CIR, in its September 24, 1966 decision,

deferred taking further proceedings on the case which was then pending with the Court

of First Instance19.

13 “Bank Union Amends Its Constitution at Confab (The Labor Front),” DBP Bulletin, April-May 1965, Vol. IV, p. 28 14 Ibid., p. 28 15 “Re: Union Negotiations,” DBP Weekly Bulletin, September 8, 1966, Vol. I, No. 18, pp. 1-2 16 Ibid., pp. 3-7 (“Petition for Hearing and Issuance of Restraining Order”) 17 Ibid., pp. 15-16 (“Reply of Management to DBPEU-NATU”) 18 Ibid., pp. 3-7 (“Petition for Hearing and Issuance of Restraining Order”) 19 “CIR Rules on DBP Labor Situation,” DBP Weekly Bulletin, September 29, 1966, Vol. I, No. 20

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Mr. Rodolfo A. Paet regained the DBPEU presidency in the national election held

on April 20, 1967, besting reelectionist President Hernandez and another candidate, Mr.

Renato Isidro, in a three-cornered contest20. President Paet was to be re-elected for at

least two (2) more consecutive terms (in the 1969 and 1971 national elections), a period

punctuated by a number of significant events such as: (1) the transfer of the DBP main

office from Escolta, Manila to its newly-built building in Makati in 196821; (2) the creation

of the Bank’s “Public Relations Information Unit” also in 196822; (3) the establishment of

the DBPEU Credit Cooperative Inc. (currently known as the DBP Credit Cooperative

Union, Inc.) on September 9, 1969 wherein President Paet played a key role23; and (4) on

the national level, the declaration of Martial Law on September 21, 1972. In late 1968,

DBPEU officers led by President Paet were administratively charged by no less than

Chairman Gregorio S. Licaros with “grave misconduct prejudicial to the service” after

DBPEU-NATU filed a notice of strike with the Department of Labor on November 11,

1968 over its demands that included, among others, its request for reconsideration of

certain appointments in the Bank that the DBPEU had adamantly opposed24. The charges

were, however, eventually dropped in early 1970 following a series of dialogues between

the parties. In the final years of his last term, the DBPEU under President Paet

negotiated, among others, for improvement of the benefits being received by Bank

employees25 and kept constant communication with management, even through the

administration of Chairman Leonides S. Virata (who succeeded Chairman Licaros in

1970).

The imposition of Martial Law in 1972 transformed not only society at large but

the labor front as well, with the Marcos regime “rationalizing” and “restructuring” labor

movements “in order to eradicate inter-union rivalries and intra-union conflicts”26 and

make them conform to its “New Society” concept of “one union, one industry.” Strikes

were banned and several so-called “progressive” labor leaders were arrested27. The

20 DBP Weekly Bulletin, April 20, 1967, Vol. I, No. 48 21 “DBP Moves to Makati,” DBP Weekly Bulletin, August 19, 1968, Vol. III, No. 63, p. 2 22 “DBP Okays PR Information Unit,” DBP Weekly Bulletin, July 29, 1968, Vol. III, No. 61, p. 10 23 The Coop Journal (official organ of the DBPEU-CCI), Vol. 1, No. 1, September 1981 24 “Union Officers Asked to Explain Strike Move,” DBP Weekly Bulletin, November 18, 1968, Vol. III, No. 76, pp. 3-5 25 “DBP Management and DBPEU Exchange Letters,” DBP Weekly Bulletin, January 10, 1972, Vol. VII, No. 1, p. 15 26 Seno, Cecilio T. “The Law on Labor Unions in the Philippines,” The Philippine Law Journal, p. 664 27 Op. cit., Fuller (www.tribune.net.ph)

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enactment of Presidential Decree No. 44228 in November 1974 profoundly impacted

labor organizations — especially those in the public sector: it removed the trade union

rights of government workers, standardized their salaries, eliminated their bargaining

rights and placed all state employees under Civil Service rules and regulations29. These

laws effectively suppressed the increasingly militant disposition of private- and public-

sector unions. As a result, most labor organizations either became mutual benefits group

or turned into cooperatives or were totally dissolved30. The DBPEU appears to have “laid

low” during this turbulent period. The years 1973 to 1974 in DBP were a time when

various offices and departments (both in the Head Office and Branches) were

reorganized, expanded, renamed, relocated and/or staffed. Based on available records,

President Paet was succeeded by Mr. Antonio Paguirigan who in turn was followed by

Mr. Manuel G. Santos. There are, however, very little or no information about them,

particularly their respective tenure and accomplishments as DBPEU President. Mr.

Paguirigan was a Branch Management Supervisor for Visayas in the Branches and

Agencies Department and was appointed as member of the Provident Fund Board of

Trustees31 from 1974 to 1975, during which time he may have been DBPEU National

President. On the other hand, Mr. Santos was only very briefly mentioned in a column

that appeared in the Union Star as having come back from a tour of the U.S.32; he

probably held the DBPEU top post from 1976 to 1978 based on Provident Fund records

during those years.

Mr. Ramon Ag. Medina was DBPEU President from 1979 to 198033 — the first of

his four (4) consecutive terms. He was well-liked by rank-and-file employees and was

best remembered for his commitment to his position, as exemplified by his efforts to

keep DBPEU members updated on various issues affecting them. Under his watch, the

DBPEU in 1985 granted scholarships to ten (10) qualified members from the Head Office

and Branches who have not finished any college course but are high school graduates

and who want to pursue higher education and career development34. President Medina

likewise led the DBPEU in opposing the Marcos administration’s plan to merge DBP

28 “Labor Code of the Philippines” 29 Op. cit., Añonuevo 30 Ibid. 31 DBP Weekly Bulletin, Vol. IX, No. 8, March 11, 1974, p. 16 32 Union Star, January 1980, Vol. I, No. 2, p. 2 33 Ibid. 34 “DBPEU Grants College Scholarship,” DBP Bulletin, April 1985, Vol. XVII, No. 4, p. 2

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with PNB and Land Bank of the Philippines35 as part of its rationalization efforts for

government financial institutions (GFIs) which gravely concerned Bank employees36. A

DBPEU open letter addressed to President Marcos requesting for the retention of DBP in

the government’s reorganization plan appeared in the September 16, 1985 issue of

Manila Bulletin37. During this time, a group of Bank employees led by Ms. Coralie D.

Labog, calling themselves the “Movement of Employees Against Lay-off” (DBP-MEAL),

sponsored a dialogue between apprehensive Bank employees and management, which

was represented by Governor Alice Ll. Reyes38. MEAL was formed by DBP and PNB

employees out of their common concern about the lay-offs that will result from the

reported merger of the two government-owned banks39. However, during one of his

campaign sorties in January 1986 just before the snap presidential election, President

Marcos called off the proposed merger and instead ordered a reorganization of DBP40.

The order, however, never pushed through after the Marcos administration was

ousted in the February 1986 EDSA revolution. Among the notable events in DBP in the

immediate aftermath of EDSA were: the two-day picket participated in by Bank officers

and employees, DBP-MEAL and DBPEU on March 1986 to dramatize their sentiments

and which culminated in the barricading of all entrances to the Bank to force their

demands on management41; the assumption of Dr. Jesus P. Estanislao as new DBP

Chairman in April 9,1986; and the approval by the Aquino administration of DBP’s

rehabilitation and reorganization with its issuance of Executive Order No. 81 in

December 3, 198642, as amended by Republic Act No. 852343. Under a cloud of confusion

and uncertainty, a number of officers and employees left the Bank that year, including

DBPEU President Medina who retired in December 1986.

The Bank’s reorganization as mandated by Executive Order No. 81, as amended,

was implemented the following year through Board Resolution 304-87, which among

35 “DBPEU Opposes Merger Plan,” DBP Bulletin, September 1985, Vol. XVII, No. 9, p. 1 36 “Corporate Newsbriefs,” DBP Bulletin, July 1985, Vol. XVII, No. 7 37 “DBPEU Opposes Merger Plan,” DBP Bulletin, September 1985, Vol. XVII, No. 9, p. 1 38 Ibid. (“Flashback: Dialogue on Proposed Bank Merger”) 39 “Kasaysayan ng Unyonismo sa Pampublikong Sektor,” PSU Topic II (prepared by COURAGE) 40 “FM Orders DBP Reorganization,” DBP Bulletin, January 1986, Vol. XVIII, No. 1, p. 1 41 DBP Bulletin, February to April 1986, Vol. XVIII, Nos. 2 to 4 42 “The 1986 Revised Charter of the Development Bank of the Philippines” 43 “An Act Strengthening the Development Bank of the Philippines, Amending for the Purpose Executive Order No. 81”

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other things gave all Bank personnel temporary appointments44. Management resorted

to an “open process” approach in filling up plantilla positions in the course of the

reorganization, posting the vacancies in the lobbies of the Head Office and the

Branches45. The shakeup reduced the number of DBP personnel from about 4,000 to less

than 2,00046 as more officers and employees opted to either retire or resign while some

were terminated for just causes.

On the national front, the ratification in February 2, 1987 of a new Philippine

Constitution that contained many provisions highly supportive of labor, as well as the

issuance of Executive Order No. 18047 on June 1, 1987 which, among other things,

restored government employees’ right to organize and bargain collectively, breathed

new life and purpose into organized labor — especially those in the public sector —

minus the radicalism that characterized such organizations in the years before and

during Martial Law. However, state workers were still under Civil Service laws and

rules with regards to concerted activities and strikes, subject to any legislation that may

be enacted by Congress.

Amid the Bank’s reorganization and the developments in the labor scene, Ms.

Coralie D. Labog and other elected National Directorate officers took their oath before

Chairman Estanislao in June 198748. Among the notable achievements during her watch

were: steering the DBPEU through the reorganization with minimal dislocations of rank-

and-file employees; broadening representation in the GFI sector through the

organization of the Alliance of Government Financial Institution Employees (AGFIE,

which was established by the employee unions of the Central Bank, PNB, DBP and LBP

in 1986, triggered by a strike in CB due to issues concerning bonuses49 and was the

forerunner of the “Kapisanan ng mga Manggagawa sa GFIs” or KAMAGFI); and

working out new benefits with Bank management and increasing/liberalizing existing

ones50. The DBPEU had its 9th National Convention on January 25-27, 1991 at the Pope

44 Luis B. Domingo v. Development Bank of the Philippines and Civil Service Commission, G.R. No. 93355 April 7, 1992 45 DBP Bulletin, March-April 1987, Vol. 19, Nos. 3-4 46 Op. cit., G.R. No. 93355 April 7, 1992 47 “Providing Guidelines for the Right to Organize of Government Employees, Creating a Public Sector Labor-Management Council, and for Other Purposes” 48 “DBPEU Officers Inducted (Flashback),” DBP Bulletin, July 1987, Vol. 19, No. 7 49 “Kasaysayan ng Unyonismo sa Pampublikong Sektor,” PSU Topic II (prepared by COURAGE) 50 Letter to all DBPEU members by National President Coralie D. Labog dated August 5, 1991

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Pius XII Catholic Center, where the top issues were the requirements for registration of

the DBPEU under Executive Order No. 180 s. 1987 and the need to adopt and ratify the

amended DBPEU Constitution and By-Laws51.

A group led by Messrs. Gilbert L. Amansec and Atilano P. Roldan were

designated as rank-and-file representatives to the Labor-Management Committee (LMC)

created pursuant to provisions of Republic Act No. 697152 and Office Order No. 85 dated

August 16, 199153. Calling themselves the “new union” (Employees Interim Body), their

group subsequently questioned before the Bureau of Labor Relations (BLR) President

Labog’s alleged overstaying in the DBPEU after her term had expired. The acrimonious

intra-union dispute between the two camps led to a series of conciliation meetings

conducted by BLR. To finally settle the issue, both groups agreed to hold a referendum

to be supervised by the BLR, wherein rank-and-file employees were made to choose

which group they want as their sole and exclusive representative in the bargaining unit.

The groups signed on June 7, 1991 a Compromise Agreement stating, among others, that

whichever group garnered the majority of total votes cast in the referendum shall have

the right to register the DBPEU and submit their respective versions of its Constitution

and By-Laws to the Department of Labor and Employment (DOLE) and the Civil Service

Commission (CSC). The BLR prepared the referendum guidelines, signed by

representatives of the contending parties, which was set for September 11, 199154.

Messrs. Amansec and Roldan won the BLR-supervised referendum (or

“referendum elections55”) held in the Head Office and the Branches, garnering 867 votes

against the 590 of President Labog’s group56. The victory gave Messrs. Amansec and

Roldan the mandate to lead the DBPEU and they subsequently assumed the presidency

and vice presidency of the DBPEU, respectively, serving from late-1991 up to 1993.

Under their leadership, the DBPEU initiated a new CBA with DBP management through

the LMC which, however, never came to fruition. President Amansec’s most notable

accomplishments, which formed part of his immediate plans after taking rein of the

DBPEU, were the submission of his duly-ratified amended version of the DBPEU

51 Ibid. 52 “Productivity Incentives Act of 1990” 53 “Labor-Management Committee Created,” DBP Personnel Bulletin, August 1991, Vol. I, No. 4 54 Op. cit., Letter of President Labog dated August 5, 1991 55 “Employees Union Cites Gains,” DBP Bulletin, September-October 1992, Vol. 24, Nos. 9-10, p. 11 56 DBP Bulletin, September-October 1991, Vol. 23, Nos. 9-10, p. 9

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Constitution and By-Laws with the BLR and the registration of DBPEU as a legitimate

public sector labor organization under Registration Certificate No. 199 issued by DOLE

and CSC on November 19, 1991. His administration undertook an audit and proper

accounting of DBPEU funds and sought representation in the LMC on such matters as

the immediate release of the balance of the profit-sharing scheme, among others. He was

also part of the Task Force on Personnel and Training Policies formed under Office

Order No. 66 dated May 18, 1993 that was tasked “to determine and [prepare action

plans/recommendations to] address controversial issues which may be causing

demotivation and discontent among Bank officers and employees57” at the time.

Ms. Rosalie S. Gallego (National Treasurer under former President Labog) was

elected National President in the incident-free polls of November 1993. The highlights of

her presidency include, among many others, improvements in the compensation and

benefits being received by Bank employees, the amendment of the DBPEU Constitution

and By-Laws and the active participation of DBPEU in KAMAGFI and in other

organizations. However, internal disputes between and among top DBPEU leaders

marred her stint, particularly after her promotion to an officer position was approved on

December 28, 1994. This became more contentious after Chairman Alfredo C. Antonio

approved on January 26, 1995 the indefinite deferment of President Gallego’s

assumption to duty so she could, according to her, “fulfill all the commitments (she)

promised to Union members.” Calls for her immediate resignation as DBPEU President

intensified, including from her fellow National Directorate officers, some of whom raised

the issue to DOLE and CSC. While the controversy was raging, the National Directorate

issued a resolution appointing Vice President Jacinto C. Espiritu as President for the

unexpired portion of her term up to December 199558. A copy of the resolution was

attached to a letter sent to Chairman Antonio dated September 13, 1995, which advised

Bank management to “cease recognition of Ms. Gallego’s representation of the DBPEU in

all Management-Labor committees, including the Provident Fund.” In its reply dated

October 12, 1995 through its Chief Legal Counsel, Management informed that it is

constrained from making any action on the DBPEU advisory pending final resolution by

an appropriate authority of the conflicting claims by the National Directorate and

President Gallego. The latter ultimately relinquished her position and assumed her

57 Memo to the Chairman by the Task Force on Personnel and Training Policies dated July 27, 1993 58 DBPEU Board of Directors Resolution No. 005-0295 dated July 14, 1995

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appointment as Bank officer effective January 2, 1996. During the brief period that Mr.

Espiritu acted as DBPEU President59, the CSC issued its accreditation to DBPEU as the

sole and exclusive bargaining agent for all rank-and-file employees of DBP thru its

Certificate of Accreditation No. 111 dated August 17, 1995 pursuant to the provisions of

Executive Order No. 180 s. 1987.

The victory of Mr. Numeriano F. Ronquillo (a Director during former President

Gallego’s time) in the national election held in November 1995 was protested by

candidates of the other parties that participated in said election. The case festered for

months and even reached the Supreme Court for finality of decision60. National Vice

President Federico A. Enriquez assumed the position in acting capacity in accordance

with the agreement reached by contending parties during the July 28, 1997 conference at

the Office of President Fidel V. Ramos in Malacañang. Foremost among the issues

during this time was DBP management’s perceived interference in DBPEU affairs, its

seeming refusal to recognize the duly-elected DBPEU officers and its alleged foot-

dragging on collective negotiations. The National Directorate with Mr. Ronquillo sitting

as duly-elected President was finally officially constituted on October 28, 1997. In 1998,

they undertook a fund generation campaign by holding a raffle draw (called “DBPEU

Centennial Raffle” and held in June 15, 1998) with the goal of providing members more

benefits (such as mortuary assistance, etc.)61. Under President Ronquillo’s watch the

DBPEU pushed for such benefits as the medical coverage of DBP retirees with them

shouldering part of the costs (approved by the Board but never implemented), the

increase in the Bank’s share in Provident Fund and others. His administration also was

able to get the collective negotiations going after DBP management formed its panel to

the Labor-Management Committee and met with their DBPEU counterparts for the first

time in May 27, 199862. Nothing came out of the negotiations, however.

No election was held in November 1998 due to the many pressing issues

confronting both the Bank and the DBPEU then (BEBDP/Amelioration Allowance,

RATA and other benefits, Watson-Wyatt study, changes in DBP’s organizational

59 CSC letter to Mr. Jacinto C. Espiritu dated August 23, 1995 60 “A Report to Our Members” by DBPEU Acting President Federico A. Enriquez dated September 3, 1997 61 Letter entitled “Dear Fellow Workers at DBP” dated April 7, 1998 62 Minutes of the First Labor-Management Committee Meeting held on May 27, 1998, prepared by Ms. Arlene M. Apolinario (Secretariat)

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structure, etc.). As such, President Ronquillo and other members of the National

Directorate held on to their positions — setting off another uproar as a group of rank-

and-file employees led by Mr. Rodolfo N. Cruz (called “Group of Seven”) protested

their continued stay in office which according to them was a violation of the DBPEU

Constitution and By-Laws. The incumbent DBPEU officers called a general membership

meeting in October 1998 which was allegedly sparsely attended by members. Thereafter

a survey was undertaken by the group of President Ronquillo asking members if they

are in favor of holding the next national elections in June 2000 instead of December 1998.

Various propaganda materials for and against the status quo were circulated, all

intended to win the hearts and minds of rank-and-file employees. The “Group of Seven”

led Mr. Cruz called a forum on February 10, 1999 wherein the hundreds of members

who attended gave him the mandate to act as “transition” leader of DBPEU63. The

national election was finally held on February 29, 2000 where President Ronquillo lost by

a wide margin to Mr. Marcial G. Rivera in the race for National President. He retired

from the Bank effective April 15, 2000.

President Rivera, a DBPEU Director under former President Gallego’s

administration, served as National President from 2000 to 2002 and was reelected for a

second three (3)-year term (2003 to 2005). Aside from working out new benefits and

improving existing ones, the following achievements highlighted his tenure in the

DBPEU: the amendments of the DBPEU Constitution and By-Laws in 2001 and in 2005;

the first-ever Collective Negotiation Agreement (CNA) entered into by DBPEU and DBP

which took effect on January 13, 2004; the filing of a case against former DBPEU officers

led by Mr. Ronquillo before the BLR, docketed as BLR-O-A-40-19-6-00, petitioning for a

comprehensive audit of DBPEU funds which eventually was decided in President

Rivera’s favor by the BLR Director and upheld by then-DOLE Secretary Patricia A. Sto.

Tomas64 (who became DBP Chairman during the Arroyo presidency); and boosting

DBPEU funds from P521,187 as of May 5, 200065 to P3,283,197 by December 31, 2005 that

enabled the DBPEU to provide certain financial benefits to its members. Like Mr. Medina

before him, he was known for always keeping members informed of the issues directly

63 Letter to “Our Fellow DBP Rank And File Employees” dated February 17, 1999 and signed by Mr. Rodolfo N. Cruz & Company 64 DOLE Resolution on BLR-O-A-40-19-6-00 dated December 29, 2004 65 DBP Employees Union Cash Position as of May 5, 2005 (prepared by then-DBPEU Treasurer Rosemarie A. Ancheta)

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affecting them by frequently issuing updates and advisories. His stints as DBPEU

president were not tainted by any controversy; neither were there any intra-union

conflicts nor in-fighting between and among National Directorate officers that plagued

previous administrations. It was also during his time that elected regional and Branch

DBPEU leaders started attending annual activities such as the national convention, team-

building and planning conference that gave them the opportunity to directly interact not

only with their national officers but also with Senior Bank officials invited to such

events. Sometime in September 2005, however, President Rivera was promoted to an

officer position and had to vacate his DBPEU post, leading to a shakeup in the national

leadership. National Vice President Gregorio M. Mico, Jr. assumed the unexpired

portion of his presidency on the basis of Article XII (Rules of Succession) of the amended

DBPEU Constitution and By-Laws. The former President retired from the Bank by the

end of 2008.

President Mico ran for the DBPEU top post and won in the national elections

held in November 2005. He previously served as Secretary General before being elected

Vice President, both under former President Rivera, and like his predecessor, he also had

two consecutive terms as National President (from 2006 to 2008 and 2009 to 2011). He

continued the plans and programs started by the erstwhile president and listed a

number of accomplishments during his six (6) years in office, including among others:

the various benefits received by rank-and-file employees from both the Bank and the

DBPEU; the successful renegotiation of the CNA in 2007 and 2011, wherein significant

improvements such as the creation of the Union-Management Consultative Committee

(UMCC) to oversee the implementation of the CNA (among other new or enhanced

provisions) were incorporated; marked increase in DBPEU membership; the alignment

of the DBPEU’s organizational structure with that of the Bank through the establishment

of fifteen (15) Regional Union Coordinating Councils (RUCCs)66; and amendment and

ratification of the DBPEU Constitution and By-Laws67. Further, the Chief Steward

(formerly “Executive Steward”) became a regular, voting member of the National

Directorate during his administration. Despite his hard work and commitment to serve

rank-and-file employees in general, President Mico had his share of critics in and out of

the DBPEU who, among other things, did not like his seemingly “deliberate” style of

66 Delegates’ Resolution No. 01-2007 dated May 25, 2007 67 Delegates’ Resolution No. 03-2007 dated May 24, 2007

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leadership. The embezzlement of DBPEU funds in 2008 by no less than his National

Treasurer, Remedios Tayag — for which a case had been filed and is still pending in

court — stained his long, dedicated service in the DBPEU. President Mico retired in

December 31, 2012.

The DBPEU currently is headed by Mr. Armin L. Ligson, who handily won as

National President in the elections held in November 2011. He previously served as

Secretary General and Vice President during the administrations of former Presidents

Rivera and Mico, respectively. During his first year in office, President Ligson actively

worked for the grant of various benefits due employees such as the variable pay, CNA

incentive, tax refund, mid-year bonus and the Christmas cash giveaway (including the

grant of the full amount thereof to new hires who meet the 6-month residency

requirement by December 31, 2012). As head of the DBPEU panel to the UMCC, he was

able to obtain from management representatives the following, among others:

implementation of the shuttle service for Head Office employees (one of the DBPEU

privileges provided for under Section 8, Article IV of the 2011 CNA) albeit on test-run

only; DBPEU representation in the Compensation and Benefits Review Committee; limit

in hiring of next-of-kin of former Bank employees; review of per diem for official travels;

holding of regional sports activities; restructuring of the PF Personnel Emergency Relief

Assistance; and putting up of a DBPEU-managed coffee shop in the canteen. The

seemingly interminable delay in Malacañang’s approval of long-sought benefits (merit

increase, RATA and Additional Compensation) by DBP employees somewhat reignited

the DBPEU’s activism in the 3rd quarter of 2012, with President Ligson leading the rank-

and-file in wearing either black arm bands or black attire (on Fridays) to express their

frustration. He also played a major role in the expansion of KAMAGFI which accepted

other Government-Owned or -Controlled Corporations during that year (and was

renamed “KAMAGGFI” to reflect the change); the revolving chairmanship of the

umbrella organization was turned over to President Ligson by Dr. Carolina Mendoza-

Basilio of ACCESS-SSS before 2012 ended.

Last edited: March 14, 2013

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