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Raphael Reyes/Rappler; images from files, First Gen FB
The former broadcast giant cites Kapamilya values, the importance of people, and profit not being the be-all and end-all as it responds to fresh 'PR attacks'
MANILA, Philippines – Saving jobs, helping the remaining employees of ABS-CBN, and being a true Kapamilya.
That, in essence, is what former broadcast giant ABS-CBN Corporation said in a statement on Wednesday, April 15, as it belied claims that 68 personnel got preferential treatment in the payout of retirement benefits, and that the P2-billion infusion requested for the debt-ridden company would be used for this purpose.
Although it has tried to shield the company from the family feud in the ultimate parent company, Lopez Inc., the Lopez media firm finally issued a longer, 13-paragraph statement on what it called “continued PR attacks against ABS-CBN.”
Sixteen days ago or on March 30, the publicly listed firm issued a seven-paragraph statement on essentially the same claims, telling the Philippine Stock Exchange that the company had “nothing further to add beside these matters.”
Since then, however, reports about the family feud continue to circulate, including what ABS-CBN described as “the latest PR article” which “purports to be motivated by a concern about employee welfare by discussing the retirement fund.” It did not specify the article.
In its latest statement, ABS-CBN took a swipe at one of its directors, saying the indivdual did not weigh so much the human impact of not saving the company.
ABS-CBN, however, did not name the director, although everyone knows by now it was Federico “Piki” Lopez, the Lopez cousin and lone director in the ABS-CBN board opposed to pouring more funds into the media company.
“Records show that one of our directors proposed shutting down ABS-CBN without so much as discussing how it would meet its obligations to its people. Records also show that the majority of the directors strongly argued for continued financial support for ABS-CBN rather than liquidation to address the welfare of the company’s employees and retirees, as well as its other stakeholders,” ABS-CBN said.
The majority of six who wanted more funding for ABS-CBN were: chairman Martin Lopez; president/CEO Carlo Katigbak; Rafael Lopez; and three independent directors: Honorio Poblador IV, Emmanuel de Dios, and Randolf David.
ABS-CBN said the largest decline in the ABS-CBN pension fund “was due to payouts to close to 6,000 employees who were retrenched as a result of the franchise loss.”
“This is proof of ABS-CBN’s commitment to fully meet all its obligations to its employees,” the company said.
Recall that ABS-CBN had to let go of over 5,000 employees after the Duterte administration and its allies in the House of Representatives voted against a new franchise for ABS-CBN in 2000. (TIMELINE: Duterte against ABS-CBN’s franchise renewal)
ABS-CBN further elaborated on reports that executives and other retirees got preferential treatment, saying these “lies” were meant to “sow intrigue.” It said:
- majority of these individuals are retirees who have received only partial or no retirement benefits, despite already retiring
- they agreed to voluntarily wait until ABS-CBN’s financial position improves before receiving full payment
- they deferred receipt of payment so that the thousands of employees who were separated from the company received their separation pay in full.
ABS-CBN also said the company, though still in severe financial crisis, has “shown steady, consistent imrovement” in recent years.
“These continued public PR attacks against ABS-CBN are a disservice to the employees who have fought so hard to keep ABS-CBN alive, and to the public that has supported ABS-CBN throughout all its trials,” it said.
“These public PR attacks on ABS-CBN’s pension fund, its business performance, and its leadership prove that the individual/s behind these releases do not have the best interests of the company at heart.”
And, the statement would not be complete without reference to ABS-CBN’s founder.
“ABS-CBN has been fortunate to have been founded by [Eugenio] Kapitan Geny Lopez [Jr.]. We were blessed to have spent time under his leadership and that of his son, Gabby. That leadership continues today through our Chairman, Mark Lopez. Each generation has remained true to the values and mission of our founder. It was Kapitan Geny who said, ‘Our reason for being is and always will be to be in the Service of the Filipino.’
“In Kapitan Geny’s own words: ‘Profit alone is not enough reason to go into business. But if we serve our people, then I think that our growth and success will follow. If we take care of our people, they will take care of us. That’s the kind of culture a company should have’.”
ABS-CBN has faced several crises in its more than 60-year history, the most important of which was after then-president Ferdinand Marcos Sr. shut down the network in 1972. It was able to retake the company after the People Power Revolution in 1986, and became the leading media and entertainment empire until the loss of its franchise. (FAST FACTS: What you should know about ABS-CBN)
Since then, it has pivoted into a content provider to various outfits, including its competitors GMA Network and Manny Pangilinan’s TV5. – Rappler.com
For a more in-depth look into the Lopez cousins’ feud, read these exclusive reports by Rappler’s former business editor, Lala Rimando:
