The Department of Labor and Employment (DOLE) exposed its pro-capitalist bias when it issued an assumption of jurisdiction or AJ order on February 5 over the ongoing struggle of workers and union at Nexperia Philippines Inc. The DOLE’s AJ effectively blocked the strike being prepared by workers led by the Nexperia Philippines Inc Workers’ Union-National Federation of Labor Unions-Kilusang Mayo Uno (NPIWU-NAFLU-KMU).

The AJ is an order issued by the DOLE secretary in labor disputes in industries deemed “vital to national interest”. It automatically prevents any strike or lockout, and obliges workers to immediately return to work and continue the company’s operations. Using the AJ, DOLE can mobilize police and military to suppress workers who will defy this order.

NPIWU conducted successive pickets and rallies this February to denounce the AJ. They called for the immediate scrapping of the AJ and for Nexperia to address the long-standing grievances of workers there. It can be recalled that the majority of NPIWU-NAFLU-KMU members voted on December 20, 2024 to stage a strike after a year of delay by the company in negotiations and deadlock in talks for a new collective bargaining agreement (CBA). This is also their fight against the illegal termination and dismissal from work of four union officials including its president on December 17, 2024.

According to the Center for Trade Union and Human Rights (Philippines), the AJ violates the right of workers to negotiate the CBA and the right to strike. The International Labour Organization Committee of Experts on the Application of Conventions (ILO CEACR) already has a ruling that the AJ violates ILO Conventions 87 and 98 on the right to collective bargaining and the right to strike.

Nexperia is a subsidiary of a multinational company that produces semiconductor chips used in vehicles, cellphones, and others. Among its clients are Bosch, Continental, Denzo, Huawei, Neltz, Tesla, Xiaomi and Samsung.

Nexperia Philippines currently produces seven million chips daily. This is part of the more than 90 billion semiconductor chips produced by the entire company annually. This February, the company reported a total revenue of $12.61 billion for 2024.

Nexperia was formerly Phillips Semiconductors, one of the largest semiconductor companies based in The Netherlands. Dutch owners sold it to American investors in 2016 and became NXP Semiconductors. In 2017, it was bought by WingTech, a Chinese company partly owned by the Chinese state. It has major offices in The Netherlands and China.