Govt admits retrenched TV5 employees not given full separation pay

It was revealed Monday, during the plenary deliberation on the budget of the Presidential Communications Operations Office that the government was unable to pay in full the separation benefits of the 713 retrenched employees of Associated Broadcasting Company (TV5).

“Not all the benefits, admittedly, were paid to the extent that they should be, simply because there were not enough cash to pay the claims,” Sen. Risa Hontiveros, who is defending the budget on behalf of PCOO replied. He said TV5 has P300 million to P500 million accumulated losses. It also incurred a capital deficiency of more than P4 billion.

PCOO head Martin Andanar was beside Drilon during the deliberation. TV5 is under the supervision of the MediaQuest Holdings, Inc., even though the private has only a 100 percent share in the network. Cignal TV, Inc. owns 34 percent, while 32 percent belongs to MVP Group of Companies and the rest of the shares belong to other stockholders

Sen. Hontiveros said one of the principal benefits that not fully paid due to financial constraints was the separation pay that is pegged at one and a half months for every year of service. “TV5 can only pay one month for every year of service but there is a continuing dialogue in order to meet this contractual obligation,” the senator said.

Be that as it may, Hontiveros also said that half of the 713 retrenched employees have already accepted their termination benefits.

“They were informed, it was a difficult decision to make but given the financial condition of TV5, there was really no choice,” Hontiveros said.

He added that another government-owned station PTV 4, RPN 9 (owned by Nine Media Corporation) and IBC 13 was also not making money though it was not in as bad a shape as TV5.

Earlier in the day, the retrenched TV5 employees staged a rally in front of the Senate gate to ask the lawmakers to investigate the alleged illegal retrenchment and non payment of their separation and other benefits.

They also said that, aside from being retrenched and denied their salaries and benefits effective November 16, 2018, the workers’ accrued and unpaid benefits and 14th month pay are now being used to “blackmail” them into accepting the unjust separation pay being offered by the TV5 Board of Directors and Management.

They said in the last two hearings at National Conciliation and Mediation Board of the Department of Labor and Employment, TV5 represented by Atty. Raul Estrella stated that the accrued and unpaid benefits will be released on the condition that each retrenched employee accept the very low and unjust separation package being offered by the management.

Estrella allegedly claimed that instruction came from TV5 chairman Manny V. Pangilinan and TV5 Board of Director Manny V. Pangilinan not to release the accrued and unpaid benefits of workers since 2007 which amounts to an estimated P105 million.

Andanar denied the allegation, saying the government has complied with the Labor Code.

“Walang illegal retrenchment, we need to comply with the law.  Nagkaroon ng notice of retrenchment in compliance with the Labor Code, 45 days, on October 1, which took effect in November 15, so we ensured that the company complied with the law,” Andanar said.