Bacaoco: No such thing as stability

WHEN you pass by Victorias, you will notice that the chimneys of Victorias Milling Company are all fired up. According to Hector Solatorio of Vicmico’s Cane Supply department, the mill is ready to accept cane deliveries from producers who might want to mill early.

He made these statements during the 2nd general assembly of the Integrated Sugarcane Growers of Negros last August 28. He also disclosed Vicmico’s early milling incentives but he requested that some details should not be made public at the moment. It will be best for the producers themselves to learn of these incentives directly from Vicmico.

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One thing which Solatorio disclosed is that Vicmico invested a hefty P50 million to improve its milling equipment. The improvements translate to a higher quality, ‘high pol’ raw sugar which will ensure that those who mill with Vicmico will get better prices for their raw sugar. This alone is an attractive enough incentive.

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Vicmico stands out among other sugar mills in the country not only because it once was the largest sugar refinery in this part of the world but because of its strong sense of corporate social responsibility as exemplified by its educational program for dependents of Vicmico employees.

It was the founding fathers of Vicmico who brought Don Bosco Technical Institute and, later, St. Mary Mazzarelo School to Negros, specifically to Victorias.

Don Bosco was established primarily to educate and train Vicmico dependents so that, when their parents later retire from the mill, they can take their parents’ place. Vicmico also set up a scholarship foundation to take care of the college education of deserving students.

Don Bosco enjoyed full support from Vicmico. The head of the Salesians which run the school receive the same salary and benefits as a department head of Vicmico. All other Salesian priests and lay brothers also receive the same remuneration and perks as a supervisory employee of Vicmico.

Teachers and staff of both Don Bosco and St. Mary are paid by Vicmico. Their IDs reflect Vicmico as their employer. As such, they also enjoy rice allowance, vacation leaves, housing allowance, free electricity, water and LPG… you name it.

Alas! All good things must come to pass.

After Vicmico was beset by a host of challenges, some of which were internally generated, the mill was forced to concentrate on its core business which is sugar milling and refining. It had to let go of other tangential divisions, including subsidies to Don Bosco and St. Mary.

Thousands of employees found themselves without work. Those who had relied on Vicmico all their lives,… those who thought that the glory days of Vicmico will never end, they found their worlds turned upside down.

Most of them do not even have a house to call their own. Since they are no longer employees of Vicmico, they had to vacate Vicmico’s staff houses. A huge chunk of their separation benefit went to the purchase of a house and lot. Whatever was left soon run out after it was invested in ill-advised businesses or simply spent in non-essential things.

Thousands of students had to quit schooling. Those who were studying in Don Bosco and St. Mary had to transfer to public schools because their parents can no longer afford the tuition fees of those schools which, without Vicmico’s subsidy, had to charge tuition fees like other private schools.

Employees who were fortunate enough to keep their jobs at Vicmico had to contend with lesser pay and a huge decrease in benefits. It was a case of ‘take it or leave it… my way or the highway’.

Now, most of the employees in Vicmico belong to contractual status.

Well, one does what one must. Vicmico is first and foremost a business. It is not a charitable organization. As such, it has to cut costs to turn in a decent profit from its billions of investments.

In this world, there is no such thing as stability. Those who lulled themselves into thinking that their employment with Vicmico was the fulfillment of their aspirations for a stable life experienced a rude awakening.

In this world, there is only either growth or decay. You are either growing or you are decaying. There is no such thing as stability.

For instance, consider a fifty year old acacia tree. If you cut it down and build a dining set out of its lumber, you will get a fine set of table and chairs. However, that dining set will eventually decay because the tree has already stopped growing. It might take twenty years but the dining set will inevitable rot.

Such is also the case with Vicmico or with any other firm. It can not afford to maintain the status quo. It has to grow, it has to adapt to the demands of the times.

Such is also the case with the industry. It has to lower its production cost, it has to improve its product and diversify if it wants to survive. Employees will be among the first to be affected when cost-cutting measures are implemented but those are necessary sacrifices to ensure survival in this cut-throat competitive business world.

(For reactions and suggestions, email bbacaoco@yahoo.com.)