GMA 7’s most valuable resource is their employees

I am writing this column feeling ashamed about the sense of my article which appeared in this corner last Monday, April 27, 2015: “GMA 7 retrenchment, shades of media convergence.”

In the article I opined that GMA 7 laid off regional station employees to pave the way for a media convergence now that business mogul Ramon S. Ang is part of the giant network.

In a statement, the management of GMA 7 said it decided to get rid of 200 provincial station workers in order to streamline operations. The end game is media convergence, which I believe is the network’s overarching goal.

In any case, if the justification was meant to soften the blow of the mass layoffs, it certainly did not because by saying that the move is part of “strategic streamlining of programs and manpower in its provincial stations,” the network merely pronounced it was placing more value on ratings and profits rather than its most important resource, which is none other than people or the station employees.

The decision to let go of 200 breadwinners at a time when classes are about to begin is very painful especially because the station is operating in the black.

In March 2015, the station paid out P1.215 billion in dividends to its shareholders after declaring a net profit at P1.010 billion. This, even if GMA 7 experienced a drop of 8 percent in consolidated revenues compared to 2013 figures.

If this is a basis for retrenchment, I think the affected employees can challenge the decision because 2013 was an election year when practically all stations, whether based in Metro Manila or in the provinces, experienced a spike in their annual incomes because of political ads.

Assuming political ads explain the upturn in 2013 profits, then 8% is “alkanse sa ganansiya” (less profits), which means 2014 was not a bad year in terms of turnover for the local station in Cebu or sister stations in Bacolod, Cagayan de Oro, Naga, Davao and Ilocos.

The National Union of Journalists in the Philippines has slammed GMA 7 for the cruel and callous treatment of their regional employees. There is no other way to call the move if one considers that top management officials and members of the board of directors receive fat emoluments every year.

In an article published in The Manila Times (“Well-paid GMA Network Board,” April 26, 2015) columnist Emeterio Sd. Perez cited a report by Due Diligencer which said, “GMA Network reported net profits of P1.621 billion in 2012; P1.675 billion in 2013; and P1.01 billion in 2014.”

“That’s a total of P4.306 billion in the last three years, of which 2.5 percent – one percent for directors and 1.5 percent for executive committee members – amounts to P107.65 million.”

“Of the P107.65 million given to the top executives in 2012 to 2014, P43.06 million went to the nine-person board, or P1.595 million each a year, and P64.59 million, or P7.211 million each a year, to the three-man executive committee.”

“Unlike that of the board and the executive committee, the compensation of the members of the management team of GMA 7 is reported as actual pays and perks, which consist of basic salaries and bonuses.”

“A compensation filing showed the total annual compensation of GMA 7’s five executives: P141.716 million in 2014; P144.488 million in 2013; and P132.951 million in 2012. This year, it estimated the group’s pays and perks at P147.385 million.”

Divide the figure among 5 executives equals an average of more than P28 million at the end of 2015 for each of the network’s 5 executives. One might say, they deserved and earned this by the sweat of their brows and nobody will quarrel with that. But to dismiss 200 employees without any fair hearing is cruel and heartless.

I support my media colleagues and am sorry for depreciating the facts when I told them to accept their fate as part of life.

* * *

The wake of the late Dr. Esperanza Faustino Fernandez, former head of the medicine department of the Cebu City Medical Center turned out to be a celebration of her life as former CCMC colleagues, friends and relatives recalled her kindness while serving the public.

The stories about my kumare Penny told during the week-long wake were spun around her compassion even for total strangers, mostly poor people who sought her professional services. I heard that at the end of the free consultation, indigent patients also bring home not only free medicines, but sometimes food and transportation money.

Mare Penny’s children, Dodong, Philbert, Maria Fatima, Hazel and Allen told me they would sometimes chide her saying, “Mommy, di gyud ta madato ani” (We will not become rich).

God provides for a kindhearted person because Mare Penny had a loving and generous family and husband, Atty. Mel.

Dr. Esperanza F. Fernandez was interred last Monday at the Celestial Gardens in Minglanilla and the family would like to thank relatives and friends for their prayers, moral and material support.

The Kaohsiong buses were of great help, thanks to Mayor Mike Rama and the Protocol Office headed by the beauteous Atty. Leslie Ann Reyes whom I met during the wake. What an interesting circumstance to meet her, two ambassadors, a bunch of lawyers, doctors and a horde of ordinary folk who all paid their last respects to Inday Penny.

May God welcome her into the bosom of His peace.

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