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Wednesday, February 26, 2020

Is ABS-CBN Preparing for a Shutdown? Why Have Regularized Employees Been Reduced By Over 60%?

In 2017, ABS-CBN's worker headcount was 11,068 persons as detailed in its 2017 Annual Report. Around 60% of the worker headcount was composed of regularized employees. The rest consisted of Non-Regular Employees, Talents, and Project-Based Employees.

In 2018, ABS-CBN's worker headcount was roughly 2% smaller - only 10,855 person as detailed in its 2018 Annual Report. However, the number of Regularized Employees grew by 2.5% that year. As a result, they comprised a slightly higher percentage of the total workforce - 62%.

ABS-CBN has said time and again that the non-renewal of its broadcast franchise will threaten the livelehoods of its 11 thousand workers. The government claimed otherwise. It said that ABS-CBN only has 4,401 employees.

"In a letter to SolGen Jose Calida dated 21 February 2020, the BIR said ABS-CBN Corp. and ABS-CBN Convergence Inc. have a total of only 4,401 employees, way below the 11,000 the Kapamilya network has been claiming in its efforts to renew its franchise which expires 30 March.
The Internal Revenue based its findings on the Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes submitted by both ABS-CBN Corp. and ABS-CBN Convergence Inc.
The BIR document showed ABS-CBN Corp. has 4,322 employees while ABS-CBN Convergence Inc. has 79 as of 31 December 2018."
 To counter this confusion, ABS-CBN released this statement detailing that it had 11,071 workers as of December 31, 2019.





It said that 5,918 people worked directly for ABS-CBN. Of this number, only 2,661 people were regular employees. The rest were Project-Based Seasonal Workers, Independent Contractors and On-Camera Talents, and Project Employees. An additional 5,153 unclassified workers brought the total ABS-CBN workforce to 11,071.


Classification 2019
Regular 2,661
Project Based 2,096
Independent Contractors 1,069
Project Employees 92
Subtotal 5,918


Others 5,153
Grand Total 11,071


This reveals that the number of permanent, regularized employees has declined substantially - by over 60%, in fact. The rest are expendable. Non-regularized employees tend to have less rights, less benefits, and can be let go at the discretion of ABS-CBN's management, especially in a country like the Philippines where the wheels of justice tend to turn very slowly.


The reduced regular employee headcount took place at a time when ABS-CBN's revenues have, in fact, increased by a healthy 4.9% over the previous year.


The reduced number of regular employees gives ABS-CBN maximum flexibility to let go of employees in the event of a broadcast shutdown and it switches completely to an internet streaming service.

The question is: Is ABS-CBN fighting for its workers or fighting for the right to exploit its workers?


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