PLDT ordered to regularize nearly 9,000 employees

ABS-CBN News

Posted at Jul 20 2017 01:32 PM | Updated as of Jul 20 2017 02:17 PM

A woman using her mobile phone is reflected on a PLDT Inc. logo in Manila. Romeo Ranoco, Reuters

MANILA - The labor department said Thursday it directed telecommunications company PLDT Inc and its contractors to regularize 8,720 employees.

The agency said it also ordered PLDT to pay P77.5 million in overtime, holiday, 13th month and other incentive pays to 2,500 employees.

The nearly 9,000 employees were under contracting and sub-contracting arrangements but their jobs were "directly related" to PLDT's business, the department said in a statement.

"PLDT and its contractors have been violating labor standards and they failed to refute the findings on the labor-only contracting activities. These employees must be regularized and entitled to security of tenure," Labor Secretary Silvestre Bello said.

PLDT said it was studying the directive, which it said was subject to appeal.

Shares of PLDT were down 0.6 percent to P1,670 on Thursday.

The company's net income has declined in the last 3 years as it embarks on a costly shift to digital services from its traditional telephone business.