The Duty Free Philippines Corporation (DFPC) is reportedly set to start the mass retrenchment of its workers next month as part of its ongoing restructuring plans, according to a labor group.
At a news conference on Friday, the United Workers of Duty Free Philippines-Federation of Free Workers (UWDFP-FFW) president Ernesto Mangalindan disclosed the DFPC management has already sent notices for separation to 58 of its workers last May 16.
“That is why by June 21, the first batch of those who will be covered by the SIP (Separation Incentive Package) will be retrenched. This will continue with the release of more notice [for separation],” he said.
The restructuring plan was deferred by the Department of Tourism (DOT) last December and by the Governance Commission for Government-Owned and Controlled Corporation (GCG) last April.
FFW President Sonny Matula said DFPC decided to push through with its restructuring plan despite questions on its legality.
He argued the five-year ban for the affected workers from applying to other government offices violates the equal protection provision of the Constitution.
Mangalindan also pointed out DFPC no longer has any basis to push through with the restructuring since it already recovered from the impact of the pandemic.
DFPC cited the Covid-19 pandemic to justify the need to reduce manpower from about 700 to just 345.
Mangalindan noted that no less than Duty-Free COO Vicente Pelagio Angala reported that their sales in 2022 doubled to $64 million compared to the previous year.
To stop the implementation of the restructuring, DFPC announced it would seek a temporary restraining order before the Parañaque Regional Trial Court next week.
“With the help of the FFW, we will file legal action against Duty Free because until there is no such legal action, it will not stop [with the restructuring plan] even if the provisions of the IRR (implementing rules and regulations) are illegal,” Mangalindan said.
BusinessMirror tried to get the reaction of the DFPC management on the said issue, but as of press time it has yet to respond on the request.
