LRT1 operator LRMC defers retrenchment of workers

Light Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT1), is putting on hold the earlier announced retrenchment of “redundant” employees affected by a right-sizing initiative to sustain its business amid reduced passenger volume due to the COVID-19 crisis.

“While the factual basis behind the redundancy program remains legally valid, LRMC is putting it on hold for now to allow the company to recalibrate strategies and continue supporting team members and government partners as long as it can,” the company said in a statement.

On Tuesday, the LRT1 operator announced it will reduce close to 20% of its workforce or over 100 employees due to significant 90% drop in ridership brought by the pandemic. 

Affected workers include tellers and supervisors, who will be retrenched due to “redundancy” while the company right-sizes its workforce to better suit the current and future business conditions.

While the retrenchment was put on hold in the meantime, LRMC Corporate Communications head Jackie Gorospe said the voluntary and mandatory retirement of employees who are 56 years old and above will proceed, “taking into account they’re part of the immunocompromised group.”

Retirees comprise about 5% of the company’s workforce, according to Gorospe.

“The Department of Transportation (DOTr) has also pledged to support LRMC and find equitable solutions to support our employees during this difficult time,” LRMC said.

The LRT1 operator said that on top of its existing COVID-19 measures and risk-based RT-PCR testing, there will be a LRMC-wide swab testing from August 14 to 19, 2020 in response to the DOTr’s mandate for all railway employees.

“This is also part of LRMC’s preparations as it anticipates the resumption of LRT1 operations once the Modified Enhanced Community Quarantine (MECQ) is lifted in Metro Manila,” it said.

LRMC is a joint venture of Metro Pacific Investment Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., Sumitomo  Corp., and Macquarie Investments Holdings (Philippines) PTE Ltd.

It took over the operations and maintenance of the LRT-1 rail system in September 2015. —LDF, GMA News