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FACTS:
On October 28, 2005, the NLRC dismissed MKP’s charges of unfair labor practices
against PLDT ruling that PLDT’s redundancy program in 2002 was valid and did not constitute
unfair legal practice. The redundancy program was due to the decline of subscribers for long
distance calls and to fixed line services produced by technological advances in the
communications industry. The NLRC ruled that the termination of employment of PLDT’s
employees due to redundancy was legal.
The CA affirmed the NLRC because PLDT was transparent and forthright in its
implementation of the redundancy program. PLDT also successfully redeployed 180 of the 503
affected employees to other positions.
ISSUE:
Did PLDT commit unfair labor practice when it implemented its redundancy program?
RULING: NO.
Redundancy is one of the authorized causes for the termination of employment provided
for in Article 298 of the Labor Code. Redundancy exists when the services of an employee are in
excess of what is reasonably demanded by the actual requirements of the enterprise.