PLDT opposes DOLE order on contractual workers' regularization
MANILA, Philippines – PLDT Incorporated, led by tycoon Manuel Pangilinan, is opposing a government order directing the dominant telco to regularize its over 8,000 contractual workers.
The telco said there is no evidence proving that it violated the rules of the Department of Labor and Employment (DOLE). (READ: PLDT still no.1 among mobile subscribers)
PLDT told the Philippine Stock Exchange (PSE) on Monday, July 24, that it has filed an appeal with Labor Secretary Silvestre Bello III regarding the compliance order it received from DOLE last July 3.
Aside from the regularization of workers, the Pangilinan-led telco said DOLE ordered PLDT and 48 of its 3rd-party service contractors to pay P78.6 million in monetary benefits to some workers due to violation of DOLE Order No. 18-A.
But PLDT corporate secretary Maria Lourdes Rausa-Chan questioned the "absence of evidence and the use of 'template' findings by the DOLE for these conclusions."
Chan also said the computation that led to the P78.6-million total was "erroneous."
"[I]ndividual worker entitlements were reckoned without regard for different rates of pay, hours of alleged actual overtime rendered, and other relevant factors," she said.
PLDT told the local bourse that its July 17 appeal has yet to be acted on. (READ: DOLE to order regularization of 10,000 PLDT employees)
Middle of digital pivot
PLDT is eyeing gains from lower manpower costs and divestment of some assets, as it aims to boost its financial performance this year.
The firm opened 2017 on a mixed note, with wireless revenues down 18%, leading to a decline in service revenues by 7% in the 1st quarter of the year.
This led to a consolidated core income of P5.3 billion, excluding the gain from asset sales and adjustments in earnings before interest, taxes, depreciation, and amortization (EBITDA), which is 26% less than a year ago.
PLDT chairman Pangilinan said he is expecting recovery starting in the 2nd quarter of 2017, but added that the telco still faces a long road to improving its profitability.
On Monday, PLDT shares were down P10 or 0.59%, ending at P1,690 each. – Rappler.com