Banco Filipino, PDIC talks on employee pay heat up

(Updated 10:42 p.m.) Tension gripped the meeting room at the National Conciliation and Mediation Board in Manila after employees of Banco Filipino Savings and Mortgage Bank and officials of the Philippine Insurance Deposit Corporation (PDIC) could not agree on whether employees of the beleaguered bank should be given their salaries 30 days after the bank was closed. "What will happen to the Labor Law's 30-day notice required of employers to notify the termination and suspension of employees?" said Ellen Gavadan, president of the Banco Filipino Supervisors Union, in a text message to GMA News Online while the closed-door meeting between the thrift bank and state-run insurer was ongoing during mid-afternoon Tuesday. "Dahil wala namang notice sa ‘min at bigla na lang nagsara ‘yung bangko, tama lang naman siguro na makatanggap pa rin kami ng suweldo. Kailangan naman nating respetuhin ‘yung batas (Because we were not properly notified about the bank’s closure, it is only fitting that we receive our salaries. We should respect the law)," she said. At the meeting, the PDIC representatives insisted they would no longer pay the salaries of Banco Filipino employees "since the bank is already closed," Gavadan said. They also said the PDIC has the power to terminate and suspend the thrift bank’s employees any time they want, she added. The BSP closed Banco Filipino on March 17, and placed it under the PDIC receivership. A bank employee who asked not to be named said that Banco Filipino management agreed to give employees their salaries until the end of March. "Ano na nangyari sa agreement namin bago magsara ang bank noong March 17 (What happened to our agreement before the bank closed on March 17)?" asked the employee, who has been with Banco Filipino for 17 years. A 'dead end' Gavadan said that emotions flared during the meeting, especially when both sides failed to reach any compromise agreement. "Magulo 'yung mga abogado ng PDIC. Sinasabi nila sa 'min na sarado na 'yung Banco Filipino. Pero under receivership pa lang naman kami. Kailangan pang i-evaluate o i-liquidate nila ‘yung assets ng banko (The lawyers of PDIC were confusing. They told us that Banco Filipino was already closed. We are still under receivership. They still need to evaluate or liquidate the bank’s assets)," she told GMA News Online after the meeting. According to the union president, the meeting at the Department of Labor and Employment was at a "dead end" in terms of resolving the issues and concerns of employees, saying there will no longer be other meetings with the PDIC. The workers’ rights are being trampled upon by the insurer, Gavadan said. "Huwag naman sana kami ganituhin ng PDIC. May mga pamilya rin kami. 'Yung trabaho namin, 'yun ipinambubuhay sa kanila (The PDIC should not be doing this to us. We also have families. Our job, that’s how we support them)," she said. GMA News Online tried to get the PDIC side, but its lawyers refused to comment. "Our jobs as lawyers are very confusing. We rather not talk about the legal basis," lawyer Christine Remollo said. A march to Bangko Sentral The Banco Filipino Supervisors Union will march to the Bangko Sentral in Manila next Monday, April 4, to ask the Monetary Board to re-open the bank. "We're not asking for our separation pay. But we want to have our jobs back," Gavadan said. The BSP said that since 2007, Banco Filipino's losses were averaging P2 billion a year. Banco Filipino's liabilities also overwhelmed its liquid assets, the Bangko Sentral said, noting the net realizable assets of the bank stood at minus P8.4 billion. The BSP gave the thrift bank a P3.5-billion emergency loan in 2002. About P2.6 billion of that loan remained unpaid. Two weeks ago, in the midst of a self-imposed closure of some of its branches, Banco Filipino officials asked the BSP for another P3 billion in emergency loan. The Monetary Board, however, refused to give the money and eventually ordered that the bank closed and its remaining assets secured. – PE/VS, GMA News