ABS-CBN should pay employees separation benefits, says DOLE


The Department of Labor and Employment (DOLE) on Tuesday said ABS CBN should compensate its employees should termination, reduction, or displacement of workforce becomes unavoidable due to the non-renewal of the network’s franchise.

This view shows the ABS-CBN network headquarters in Quezon City in the Metro Manila area on May 5, 2020. (Photo by Maria TAN / AFP / MANILA BULLETIN)

In a statement, DOLE Undersecretary Ana Dione said the network is legally bound to pay separation benefits to those who will be retrenched or terminated.

"We have taken note of the assertions by network executives that the plight and welfare of their thousands of workers was a primary reason why the ABS-CBN franchise has to be granted by Congress," she said.

"If they truly care for their workers, then the network is morally bound to give them all pays and emoluments that the law provides," added Dione.

She said labor laws mandate a company that reduces its workforce or has ceased operations to provide its employees with severance pays or similar emoluments.

"The employees should therefore be assured that they are getting separation benefits, and start anew," said Dione.

On July 10, the House Committee on Legislative Franchises adopted the recommendation of its technical working group to reject the bills seeking to grant ABS-CBN a new franchise in a vote of 70-11.

The decision puts in peril the employment status of its 11,000 employees.

Dione said they share the sadness of the thousands of workers and employees of ABS-CBN, who are affected by the decision.

"The verdict may be unfortunate for that would mean imminent job loss for a significant number of employees of one of the largest media enterprises in the country," she said.

Dione said they are ready to extend the necessary assistance to all employees who may be displaced as a result of the congressional action.

"So, as early as now, we need to know how many and who among their workers are entitled to those benefits. This is why our National Capital Region (NCR) regional office has been directed to determine exactly the number of ABS-CBN employees, who they are and what is the nature of their employment," she said.