Employees of state-run Land Bank of the Philippines and Development Bank of the Philippines will keep their jobs despite the planned merger, the Governance Commission for Government owned and Controlled Corporations said Thursday.
GCG chairman Cesar Villanueva said employees would not be laid off during the merger of the two banks, as it was the condition of President Benigno Aquino III before he approved the plan.
“Actually, no employees will be affected. That’s the condition of the president. He wouldn’t sign it unless he was assured that no employees would be affected,” Villanueva said at the sidelines of the launching of whistleblowing web portal for state-run corporations.
Villanueva said employees of the two banks would also be given a chance for an early retirement program wherein they would be compensated with a retirement pay equivalent to 1.5 of their monthly salary for every year of service.
GCG said that while no employees would be forced to separate from the bank, some of them might be reassigned to different locations or jobs.
The agency also said a merger incentive plan would be offered to employees who wish to separate from the bank in view of the change in their duties. The separation and availment of the MIP would be on a voluntary basis, subject to the approval of management.
“[The surviving bank] will absorb all of them. The president has provided P1.5-million [retirement pay] on top of everything. It’s not gonna be tucked up with their GSIS,” Villanueva said.