Employees who will be affected by mergers, consolidations and acquisition of businesses need not worry about losing their jobs if a bill filed in Congress is approved.
TUCP Party-list Rep. Raymond Democrito C. Mendoza authored House Bill No. 1557, which seeks to protect the rights of the employees to security of tenure and other terms and conditions of employment in the event of mergers, consolidations and acquisitions.
Mendoza said because of globalization and the need to become bigger and better, competition among businesses has become tremendously intense.
"Mergers, consolidations and acquisitions, including the sale or transfer of all substantial assets, business enterprise have become very rampant," Mendoza said.
Employers use these devises and schemes to obtain competitiveness in the business, according to Mendoza. However, some employers utilize the same corporate mechanism to violate the rights of their employees to security of tenure, among others, he lamented.
To prevent such unscrupulous practices and to safeguard the employees concerned, the proposed measure directs the acquiring or transferee employer to continue the employment of the transferor employer's employees without loss of seniority rights and privileges.
Furthermore, it mandates that such merger, consolidation or transfer of business should not diminish the wages, benefits and other terms and conditions of employment of the affected employees.
In case of differences in the employment levels, wage and benefit scales and other employment terms or conditions, the superior or most favorable to the employees shall prevail. - Jennifer Arteche-Valenton, MRS-PRIB
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