A labor group urged President Ferdinand R. Marcos Jr. to stop the “rightsizing” in the Duty Free Philippines Corp. (DFPC), which is expected to displace over 700 workers by next month.
The Federation of Free Workers (FFW) made the appeal on behalf of the United Workers of Duty Free Philippines (UWDFP) in a letter it submitted to Marcos last November 27.
“We are respectfully requesting this administration to stop or hold in abeyance the right sizing plan for the DFPC as more than half of the workforce will be out of jobs on the first day of 2023,” FFW President Jose G. Matula said in the 2-page letter.
Likewise, it also urged for the proposed rightsizing to be done with consultation with the UWDFP.
FFW said the reorganization is expected to affect almost all of the 739 employees of the DFPC, an agency attached to the Department of Tourism (DOT).
It noted only some of the displaced workers will be able to apply anew for the 345 approved plantilla position of the DFPC.
Matula said the plan, which was announced in a flag-raising ceremony last November 7, surprised the UWDFP members since the DFPC decided on it without conducting a “significant or meaningful consultation or discussion” with its workers.
“The Union had communicated to the GCG [Governance Commission for Government-owned and controlled corporations], CSC [Civil Service Commission] and DOT on the workers objections to the retrenchment plan for DFPC but no action has been taken by them except to acknowledge receipt of the union communication,” Matula said.
As of press time, Malacañang has yet to issue a statement on the matter.
Last year, DFPC’s revenue fell to $35 million (P1.93 billion) as pandemic travel restrictions continued to keep tourists away from the country. Minus expenses, the government firm’s loss widened by 47 percent to P558 million, according to a report by the Commission on Audit. In 2019, the government firm recorded sales of P11.86 billion, netting a profit of P470.36 million after expenses. (See “Duty Free Fiesta Mall to be closed, relocated as restrictions against Covid-19 widen losses,” 24 July 2022, BusinessMirror)
The financial health of DFPC is important as under Republic Act 9593 (Tourism Act of 2009), at least 50 percent of its annual profits are supposed to be remitted to the Office of the DOT Secretary to fund tourism programs and projects. Of the remitted amount, 70 percent shall be given to the Tourism Promotions Board, the marketing arm of the DOT.
‘Rightsizing’ to displace 739 Duty Free workers
Source: News Paper Radio
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