Laid-off TV5 workers appeal ‘unjust’ separation pay

MANILA, Philippines – Associated Broadcasting Company (TV5) employees who were affected by the TV network’s retrenchment program here are asking the management for due compensation after some reportedly received unjust separation pay offers.

He said one of them, seasoned radio announcer Egmidio “Emie” Bustillo, was informed he would get a separation pay of only P400,000, instead of P4 million — the amount he was supposed to get for over 24 years of service in the company.

“They (affected employees) were promised due compensation by the network, but the offer was not enough based on their computation,” noted Tangcawan.

Tangcawan said others who served fewer years would only be given P350,000 each.

The MVP Group of Companies, however, now only owns a minor 20.8% stake in TV5 following a Supreme Court ruling and several capital raising activities that saw the entry of private groups in the company.

The company is undertaking a retrenchment program to trim its financial losses.

Presidential Communications Operations Office Secretary Herminio Coloma Jr., whose office overseas RPN-9 operations by virtue of an executive order, earlier announced that the network would serve termination notices starting October 1, but these would take effect after a 30-day period or in November.

Retrenchment

TV5 had P3 billion in obligations, of which P2 billion was owed to its employees.

To settle these obligations, the company borrowed from several groups, including Cignal TV, Inc.

Cignal TV was allowed to convert this debt into equity, giving it a substantial 34% stake in TV5.

Another group, MediaQuest Holdings Group and the MVP Group of Companies, owns another major block of 32%. was awarded the stake after the Supreme Court ruled with finality in 2016 that it was the rightful owner of the stake.

In a previous statement, TV5 management said it “struggled to raise funds needed to continue its operations and pay its employees regularly but to no avail.” “This unsustainable situation has resulted in years of unpaid debts and continuing financial losses,” it added.

The retrenchment of employees was a way to cut costs.

TV5 is no longer sports programming and its airtime had already been assigned to blocktimers.