MANILA, 01 May 2013 – Digital Telecommunications Philippines (Digitel) said that there was no contractualization as alleged by some quarters when the company decided to implement a redundancy program following the migration of its landline subscribers to parent firm PLDT. 
 
Contrary to reports that “almost all of these redundant employees were offered jobs as contractual personnel with the same salary, same position, same job description and same work location”, PLDT and its subsidiaries or affiliate companies have actually hired a total of 388 employees from Digitel as regular, not contractual, employees. 
 
“More importantly, the facts show that the Digitel case is actually a situation where redundancy, not contractualization, has unfortunately become unavoidable,” Digitel Spokesperson Reuben Pangan said.
 
After PLDT acquired Digitel in late 2011, it conducted a review of the operations of the different businesses of Digitel and its subsidiary Sun Cellular.  It found that Digitel’s landline network had reached its end-of-life stage.  There are no more spare parts for these facilities, much of which were acquired from the old telephone network of the government dating back to the 1980s.
 
Digitel had attempted to modernize its network in 2011, but only 5% of the facilities have been upgraded.  “These facilities now have to be replaced, otherwise Digitel subscribers will have to endure progressively deteriorating service,” Pangan pointed out.
 
“Given this situation, it is better from the standpoint of public service to retire the old Digitel network and migrate our customers to PLDT which has just completed its network transformation,” he added. “This way, Digitel customers would continue to be served at the same rates, with the same subscriber number, and with better quality and wider range of services.”
He noted that Digitel sought and obtained approvals of the National Telecommunications Commission (NTC) at every phase of the migration process.

Unfortunately, closing down Digitel’s landline network created a redundancy situation.  The regular jobs in Digitel are simply no longer there because the Digitel network is being decommissioned and its customers are being migrated to PLDT.
“Digitel has taken every possible step to cushion the impact of the redundancy program.  It provided affected employees a generous redundancy package – about twice the value required by law plus medical benefits.  The Company has also helped affected employees find alternative employment,” Pangan noted.
 
“That is how 388 former Digitel employees were hired by PLDT, Sun Cellular and other affiliated companies, while others have been referred to service providers.  We have also provided seminars and workshops for those interested in setting up small businesses,” he said.
“In short, we have done everything possible to deal with this difficult situation in a fair, responsible and humane manner,” he pointed out.
Digitel also clarified that the Supreme Court did not order the reinstatement of the 13 dismissed employees in 2005. It did order the payment of compensation.  As the SC said in its decision:
 
“…We adhere to the oft-quoted doctrine that separation pay may avail in lieu of reinstatement if reinstatement is no longer practical or in the best interest of the parties.
 
Under the doctrine of strained relations, the payment of separation pay is considered an acceptable alternative to reinstatement when the latter option is no longer desirable or viable. On one hand, such payment liberates the employee from what could be a highly oppressive work environment. On the other hand, it releases the employer from the grossly unpalatable obligation of maintaining in its employ a worker it could no longer trust…”
 
Pangan noted that in fact, more than half of the 13 former Digitel employees who have sought intervention on their concern have accepted their separation pay as ordered by the high court.
 
However, Pangan said that Digitel has been unable to commence negotiations for a collective bargaining agreement (CBA) as ordered by DOLE to implement the Supreme Court decision as there is simply no existing Collective Bargaining Unit for Digitel following the redundancy program which was completed last March 15.