The Philippines' Department of Labor and Employment (DoLE) has ordered a work stoppage covering six vessels operated by Atienza Interisland Ferries, Inc., after inspectors found deficiencies in the company's workplace safety programs, designated safety personnel, and emergency preparedness measures.

The order was issued by DoLE-National Capital Region (NCR) on Oct. 12, following a labor inspection conducted on Oct. 10 at the Navotas Fish Port in Navotas City.

DoLE-NCR Regional Director Roy Buenafe said the inspection showed that the company lacked a required occupational safety and health program, had not designated safety officers, and had no emergency preparedness module in place.

The directive covers the MV November Cattleya, MV December Poinsettia, MV September Tulips, MV October Lavender, MC Star San Carlos, and MV May Lillies. Mr. Buenafe said the vessels would not be allowed to resume operations until the identified deficiencies had been addressed.

The agency gave the company until Oct. 23 to comply with the requirements, warning that noncompliance could result in administrative penalties of up to P100,000. That deadline now functions as the benchmark for whether the six vessels can be cleared to sail again, or whether the company will face further administrative action.

The order was issued under Rule VI of Department Order No. 238, Series of 2023, pursuant to Article 128 of the Labor Code and Republic Act No. 11058, or the Occupational Safety and Health Standards Law.

Inspection records show that the six vessels are registered under the Port of Batangas City, with passenger capacities ranging from 152 to 530.

DoLE-NCR also directed the company to continue paying the wages of affected employees for the duration of the work stoppage, citing Article 128(c) of the Labor Code. “Respondents shall pay the wages of all affected employees the period covered by this WSO, the issuance of this Order having resulted from violations attributable to the employer,” the order read. The provision keeps affected workers on the payroll for as long as the stoppage lasts, leaving the operator to carry wage costs while its ships are barred from sailing.

The work stoppage comes after a fire broke out aboard another Atienza-operated vessel, the MV June Aster, on Sept. 9 while it was traveling from Batangas to Coron, Palawan. According to authorities, the incident left 77 people dead, while eight others were reported missing.

In a separate investigation opened after the fire, DoLE reported labor and occupational safety violations involving the vessel's management, including alleged underpayment of wages and deficiencies in safety programs and emergency response plans.

Authorities are also looking into the circumstances surrounding the fire, including reports concerning the loading of dangerous cargo and the vessel's clearance to sail despite a reported mechanical problem. The investigation into the September fire is separate from the work stoppage order covering the six other vessels, which remain out of service pending the company's compliance.

The report was originally published by BusinessWorld, with reporting by Pexcel John Bacon.