President and CEO Carlo Katigbak to consider retrenchment process due ABS-CBN franchise renewal issues and delays.
ABS-CBN FRANCHISE – Kapamilya network’s President and CEO Carlo Katigbak might consider retrenchment process due to delays of their renewal case.
In a previous article, ABS-CBN network appealed to Supreme Court to immediately act on their case so that they can go on air again after being forcefully shut down by the cease and desist order from the National Telecommunications Commission (NTC).
One major reason is because of their huge losses everyday in their advertising revenues amounting Php 30-Php 35 million daily. With this, they fear that they may eventually lay off some of their workers, reduce salaries and benefits, and cut down on some of their costs and expenses.
And the network’s President and CEO Carlo Katigbak feared that if they were not able to return to airing and broadcasting by August, they might consider retrenchment process. He said, “We felt it would be very, very painful to put our employees out on the street without them having an idea as to how they can continue earning a living and continue to feed their families.”
But as much as they wanted not to let this happen, they are limited by financial constraints as per PEP report. The network has a total of 11,000 employees coming from their various subsidiaries and affiliates. This include their talents, content creators, security guards, canteen helpers, drivers, utility personnel, and among others.
The forced shut down of ABS-CBN which happened last May 5 is because of the expiration of their 25-year legislative franchise. But then, House Bill No. 6732 has been filed by Speaker Alan Peter Cayetano and other lawmakers. This is “An Act Granting the ABS-CBN Corporation A Franchise to Construct, Install, Operate and Maintain Radio and Television Broadcasting Stations in the Philippines, and For Other Purposes”.
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