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Tuesday, January 21, 2003
Islacom cuts jobs to curtail losses
By Jessica B. Natad
SOME 75 employees of the wireline service of Globe Telecom’s Cebu-based telecommunications subsidiary will lose their jobs soon.
This as Isla Communications Co. (Islacom) Inc. decided to streamline its workforce to prevent
further losses that have weighed down on Islacom’s financial viability, said Islacom chief counsel Rodolfo Salalima.
“Islacom’s management notes a compelling business reason to stem the corporate bleeding—with the greater good of preserving a company that provides a very vital telecommunications service to the people of the Visayas,” he told a press conference yesterday at the Laguna Garden Café.
Islacom’s current retrenchment is the third reduction of employees since the Ayala-led Globe Telecom bought into the then debt-ridden Islacom two years ago.
Islacom is one of the providers of landline services in the Visayas. Since its sale to Globe, it has been carrying Globe’s landline product, Globelines.
Salalima said Islacom had racked up losses amounting to P2 billion as of September last year attributed to the increasing capital expenses and the oversupply of the firm’s manpower.
For the retrenched employees, 50 of them coming from Cebu, Salalima said Islacom is offering a generous separation package, which is four times what the law provides.
He said the law mandates a company to pay an employee one-half of a month’s pay for every year of service. Islacom, however, is giving its separated employees two months’ pay for every year of their service with Islacom.
Islacom has also put together livelihood training courses and career and investment aids to help the employees concerned.
The notices of retrenchment, which will be effective a month after, will be sent today, he said.
(January 21, 2003 issue)
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