CAGAYAN de Oro City - Legal assistance is on the way for the beleaguered workers of the Philippine Sanjia Steel Corporation in Tagoloan, Misamis Oriental, which was forcibly shut down by authorities on May 15 over the alleged handling of hazardous materials and the sale of substandard steel.
Lawyer Proculo Sarmen, a consultant for the Federation of Free Workers (FFW), announced that the group is offering free legal aid and support to more than 300 workers affected by the abrupt closure of the 22.7-hectare plant in Barangay Baluarte.
“We are extending assistance and support to the affected workers, considering that they are not yet organized,” Sarmen said.
Meanwhile, lawyer Beverly Musni, secretary-general of the Union of People’s Lawyers in Mindanao (UPLM), revealed that at least 10 workers have already come forward to seek help in recovering unpaid salaries and other benefits.
“We will file representations on behalf of the workers before the National Labor Relations Commission (NLRC) soon,” Musni said, adding that the labor cases will be filed against Sanjia’s new owner, Zhang Dongjan.
The Raid and Diplomatic Friction
The shutdown stems from a massive May 15 raid led by the Presidential Anti-Organized Crime Commission (PAOCC) and the National Bureau of Investigation (NBI), which resulted in the arrest of 69 undocumented foreign nationals.
Defense Secretary Gilbert Teodoro, who inspected the site immediately after the operation, reported that authorities discovered hazardous processing materials and millions of tons of substandard steel rebars.
Teodoro emphasized that the plant will remain closed pending the resolution of criminal cases.
However, the Department of Justice (DOJ) released 64 of the detained Chinese nationals last week, citing insufficient evidence regarding immigration labor violations, poor working conditions, and hazardous material handling.
The release followed a formal diplomatic protest from the Chinese Embassy in Manila, which raised serious concerns over the treatment of its citizens.
Links to the Yang Brothers
Tony Yang, the brother of businessman Michael Yang—who once served as an economic adviser to former President Rodrigo Duterte and has links to illegal drugs—previously owned the steel plant. Authorities currently detain Tony Yang in Manila for allegedly falsifying public documents to conceal his Chinese nationality.
Workers’ Rights Maintained
Sarmen questioned the jurisdiction of the enforcement agencies, pointing out that the NBI and the Department of National Defense (DND) lack legal authority over Sanjia's operations, arguing that such power rests solely with the Department of Labor and Employment (DOLE).
Regardless of the raid's criminal implications, Sarmen maintained that the plant's closure does not absolve the management of its obligations to its Filipino workforce.
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He asserted that the employees still legally retain their right to security of tenure and the full payment of their earned wages.
Furthermore, Sarmen emphasized that the company must grant workers due process prior to any official termination, and that management remains obligated to provide their appropriate separation benefits.
“The government closure of Sanjia did not automatically terminate the workers, and its owners must still comply with our labor laws,” Sarmen stressed.
