PSE Circular for Brokers No. 1924-98

August 18, 1998 PSE CIRCULAR FOR BROKERS NO. 1924-98 August 17, 1998 DISCLOSURE DEPARTMENT Listings and Disclosure Group 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Maria Isabel T. Garcia Department Head - Listing Group Dear Ms. Garcia, Pursuant to the disclosure requirements of the Philippine Stock Exchange, Inc., please be informed that the Honorable Secretary of Labor and Employment Bienvenido E. Laguesma issued an Order dated 14 August 1998 declaring among others, the assumption of jurisdiction by the Office of the Secretary of Labor over the entire labor dispute at the Pilipino Telephone Corporation ("Piltel") pursuant to Art. 263 (g) of the Labor Code as amended, enjoining accordingly, any strike or lockout. A copy of said Order was received by Piltel from its counsel on 17 August 1998. LLjur Attached to this report is a copy of the aforementioned Order of the Secretary of Labor. Thank you very much. Very truly yours, PILIPINO TELEPHONE CORPORATION By: (SGD.) JOSEPH A. SANTIAGO Director, Legal Affairs OS-AJ- NCMB-NCR-NS-07-271-98 NCMB-NCR-PM-06-171-98 IN RE: LABOR DISPUTE AT PILIPINO TELEPHONE CORPORATION On 18 May 1988, the PILTEA-MKP (the Union) initially filed a Preventive Mediation Case with the National Conciliation and Mediation Board (NCMB) on account of bargaining deadlock with its employer, the Pilipino Telephone Corporation (the Company). On 13 July 1998, the Union filed a Notice of Strike principally anchored on unfair labor practice but specifically alleging that the Company is restraining and coercing union members and interfering with the right to self-organization. The two cases were consolidated and several conciliation conferences were conducted by the NCMB to explore all avenues for settlement, but the same proved futile as the parties stood pat with their respective position. In the meantime, on 04 August 1998, the Union submitted the results of the strike vote which affirmatively supported the holding of an actual strike. On account of this, it is imminent that the Union will declare an actual strike. LexLib Employing more or less 1,800 employees, the Company is one of the largest telecommunication firms in the Philippines, serving over 350,000 subscribers strategically located in several towns, cities and provinces of the country. Its clientele consists of 191,000 cellular phone subscribers, 94,00 pre-paid subscribers and 69,000 RTS landline and ED109 subscribers who are mostly commercial and professional users. An actual work stoppage, therefore, at the Company will be fraught with dire consequences not only to those who are directly and indirectly dependent upon the unhampered operations of the Company but to the country's long-term economic development program, as well. Moreover, any work stoppage will only serve to aggravate the current economic difficulties confronting the country. It is on the basis of the foregoing that an intervention by this Office over the entire labor dispute is imperative and justified. WHEREFORE, premises considered, this Office hereby assumed jurisdiction over the entire labor dispute at Pilipino Telephone Corporation pursuant to Art. 263 (g) of the Labor Code, as amended. Accordingly, any strike or lockout, whether actual or amended, is hereby enjoined. Furthermore, the parties, are likewise directed to cease and desist from committing any or all acts that might exacerbate the situation. cdlex To expedite the resolution of the dispute, the parties are hereby directed to file their respective position papers and documentary evidence within TEN (10) days from receipt of this Order. SO ORDERED. Manila Philippines, 14 August 1998. (SGD.) BEINVENIDO E. LAGUESMA Secretary OS-AJ-0020-98 NCMB-NCR-NS-07-271-98 NCMB-NCR-PM-06-171-98 IN RE: LABOR DISPUTE AT PILIPINO TELEPHONE CORPORATION NOTICE OF ORDER TO : ATTY. ARTURO TAN Counsel for PILTEA-MKP Sanidad Abaya Cortes De Viterbo Y Tan 2ND Floor Transe Orient Maritime Building #66 Timog, Quezon City ATTYS. JOMARIE VILLONCO/ANTONIO PIDO 9th and 10th Floors PHILCOM Building Paseo de Roxas, Makati City MR. JOJO DE LEON PILTEA-NKP President 4th Floor Bankers Center 6764 Ayala Avenue, Makati City GREETINGS : Enclosed is a copy of the Order of the Hon. Secretary of Labor and Employment, Bienvenido E. Laguesma dated 14 August 1998 in connection with the above-entitled case. For your information and guidance. Manila, Philippines, 14 August 1998. FOR THE SECRETARY OF LABOR. (SGD.) GRACE M. TAN Head Executive Assistant