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Chinabank posts record 2024 net income

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CHINA Banking Corp.’s (Chinabank) net income rose 12.7% to a record P24.8 billion last year, amid sustained core business growth.

Its common equity tier 1 ratio was 15.3%, while total capital adequacy ratio was 16.2%, the Philippine lender said in a statement on Thursday.

The publicly listed lender did not provide financial figures for the fourth quarter.

“Our ongoing business transformation as well as solid fundamentals will allow us to sustain our growth in the coming years,” Chinabank President and Chief Executive Officer Romeo D. Uyan, Jr. said.

The bank’s full-year performance translated to a return on equity of 15.6% and return on assets of 1.6%, according to its financial statement.

Net interest income rose 18.7% year on year to P63.54 billion due to asset base expansion. Net interest margin stood at 4.5%. Revenue increased 21.1% to P65.49 billion.

Operating expenses went up 20.43% to P30.07 billion amid continued investments in manpower and technology, and volume-related taxes. Its cost-to-income ratio was 47%.

Gross loans rose 18.55% to P916.23 billion from a year earlier as demand from all segments increased.

“Taking a more proactive stance against portfolio risks despite the easing of its nonperforming loan (NPL) ratio to 1.6%, the bank also increased its credit provisions to P3.3 billion,” Chinabank said. “The resulting NPL coverage was higher at 139%.”

Total deposits rose 12.2% to P1.33 trillion from 2023, while assets expanded 11.4% to P1.65 trillion. Total capital went up 12.2% to P168.5 billion.

The lender’s liquidity coverage ratio fell to 110.67% from 127.02%.

“With ample liquidity and a solid capital structure, we can confidently support our institutional and retail customers and advance our growth strategies, while ensuring financial stability through market volatilities and economic challenges,” Chinabank Chief Finance Officer Patrick D. Cheng said in the statement.

The bank doubled its stock price last year due to its strong performance and investor confidence, it said. Book value per share rose 12% to P62.61.

Chinabank shares fell five centavos to close at P86.50 each. — Aaron Michael C. Sy

Buffy the Vampire Slayer’s Michelle Trachtenberg, 39

MICHELLE TRACHTENBERG, an American actor known for her roles in the television series Buffy the Vampire Slayer and Gossip Girl, died on Wednesday, according to her public relations team.

“It is with great sadness to confirm that Michelle Trachtenberg has passed away. The family requests privacy for their loss. There are no further details at this time,” the statement said.

The cause of Ms. Trachtenberg’s death is not known.

The actor was born on Oct. 11, 1985, in New York City to Jewish immigrant parents.

As a child, Ms. Trachtenberg got her start in Hollywood when she was three years old in commercials and her television debut was in the Nickelodeon series The Adventures of Pete & Pete in 1994.

At 10 years of age, she landed her first title role in the 1996 movie Harriet the Spy.

She had roles in several Nickelodeon productions leading up to her being cast in the cult classic EuroTrip in 2004 when she was in her early twenties.

Then came the roles she is best known for, including the character Dawn Summers in the WB supernatural drama Buffy the Vampire Slayer in 2000 and as Georgina Sparks on the CW television series Gossip Girl in 2007.

Some of her other roles include television films Killing Kennedy, Sister Cities, and the science fiction film The Scribbler.

Ms. Trachtenberg also appeared in music videos from emo-rock band Fall Out Boy for their song “This Ain’t a Scene, It’s an Arms Race,” and the Joaquin Phoenix-directed music video for “Tired of Being Sorry” by Ringside. — Reuters

Higher costs cut Philex Mining’s 2024 profit to P810M, down 20%

PHILEXMINING.COM.PH

PANGILINAN-LED Philex Mining Corp. saw its attributable net income decline by 20% to P810 million in 2024 from P1.02 billion a year earlier, as higher costs outpaced revenue growth.

Core net income also dropped 22% to P746 million from P963 million, the company said in a disclosure.

While revenues grew 6% to P8.18 billion from P7.73 billion, operating costs and expenses climbed 9% to P7.3 billion, driven by higher production costs, increased depletion and depreciation, and rising administrative expenses.

Philex reported that depletion, amortization, and depreciation expenses surged to P904.6 million from P698.4 million in 2023.

Production costs increased to P5.61 billion from P5.21 billion, while excise taxes and royalties edged up to P523.98 million from P522.5 million. General and administrative expenses also rose to P260.39 million from P242.42 million.

Despite these cost pressures, the company said higher global gold and copper prices helped offset some of the impact. Gold prices reached $2,419 per ounce in the fourth quarter, while copper peaked at $4.57 per pound before settling at an average of $4.32 per pound for the year.

Philex also noted that its total tonnage milled in 2024 was slightly lower at 6.81 million tons, compared with 6.85 million tons in 2023.

Meanwhile, the company reported progress on its Silangan Project in Surigao del Norte, saying that the underground main access decline has reached the Santa Barbara 1 ore body. Key processing equipment, including a SAG mill and atmospheric leach feed thickener, has been delivered and is ready for installation.

“In 2025, we will navigate the challenges of operating an old yet viable mine like Padcal and commissioning a new mine like Silangan,” Philex Mining President and Chief Executive Officer Eulalio B. Austin, Jr. said.

Philex Mining shares closed 1.99% lower at P4.93 apiece on Thursday. — Kyle Aristophere T. Atienza

A growing appetite: 5 lessons to learn before jumping into the restaurant business

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There’s something about the restaurant biz that calls out to Filipinos. In my many conversations with entrepreneurs, restaurateurs and aspiring entrepreneurs and restaurateurs, their passion for food always rises to the forefront. It’s a testament to how rich Filipino food culture is, that so many of us want to put up a restaurant or food business based on their special secret recipe or their lola’s iconic dish.

With such a deep and strong food culture, the food service industry in the Philippines is booming. Our appetite for new cuisine is bottomless, and the industry is expected to grow at a compound annual growth rate of 13% between 2022 to 2027.

Evidence of this growth is all around us. It seems that there is no end to the new restaurants opening almost every week. But before we all quit our day jobs to pursue that passion of starting our own cafe or launching “The Potato Corner of X,” just how hard is it to succeed in the highly competitive restaurant business? And is there a recipe for success?

Recently, I spoke to restaurateur David Sison, the co-founder of Mama Lou’s and president of the Restaurant Owners of the Philippines. He has such a wealth of experience in establishing restaurants — and, more importantly, succeeding with each. With Mama Lou’s he grew a humble Italian pizza parlor into a restaurant chain with 29 locations and five more on the way this year. Expanding beyond Italian cuisine, he is now venturing into Filipino, halal-certified, Cantonese, and even brewery concepts. His businesses include Famu, Nonna’s, Fatima Halal, Braubass, and more. David’s journey offers invaluable business lessons for aspiring restaurateurs.

LESSON 1: FAILURE IS A STEPPING STONE TO SUCCESS
David wasn’t always in the restaurant business. Before finding success with Mama Lou’s, he dabbled in various businesses, from an internet café to buy-and-sell ventures. These early entrepreneurial efforts, however, ended in failure.

Despite these setbacks, David remained committed to learning and improving. When he saw the potential in Mama Lou’s, he took a different approach, crafting a solid business plan and securing investors rather than simply borrowing money. His early failures taught him that business success requires not just passion but also proper financial planning and operational discipline.

LESSON 2: FINDING THE RIGHT BUSINESS OPPORTUNITY
David attributes much of Mama Lou’s success to identifying the right market gaps. At the time of its expansion, there were few Italian restaurant brands offering authentic, high-quality ingredients at scale.

“I saw that there were not a lot of Italian restaurants that had scale. Many were focused on what was readily available rather than sourcing the best possible ingredients,” David explained. By emphasizing authentic flavors and consistent quality, Mama Lou’s carved out a strong niche in the competitive restaurant industry.

LESSON 3: THE IMPORTANCE OF PROFESSIONALIZING A BUSINESS
In the early years of Mama Lou’s, David recognized a critical challenge: inconsistency. The restaurant’s success relied heavily on the chef, leading to fluctuations in food quality. To address this, he applied what he learned from his Master’s in Entrepreneurship at De La Salle University — building standardized systems and processes.

“The pandemic really taught us to professionalize the business, to focus on the foundation, and to build systems,” David shared. This approach enabled the company to scale efficiently, ensuring that quality and customer experience remained consistent across multiple locations.

LESSON 4: PEOPLE ARE THE HEART OF THE BUSINESS
While food quality is crucial, David believes the real secret to restaurant success is people — both customers and employees. “Business is really all about life. It’s all about how you make people feel,” David said, citing renowned restaurateur Danny Meyer.

Mama Lou’s built its reputation not just on great food but on a warm, hospitable dining experience. David ensures that his team is composed of individuals who embody kindness, empathy, and optimism. To institutionalize this, he developed a hiring framework based on five “gifts of hospitality”: eye contact, genuine smiles, enthusiasm, welcoming hand gestures, and confident posture.

“When you scale so fast, you tend to compromise. You may get managers who can hit numbers, but if they don’t align with your values, your customer service suffers,” David emphasized. He learned that hiring the right people from the start is crucial to maintaining the company’s culture as it grows.

LESSON 5: STRATEGIC PLANNING IS NON-NEGOTIABLE
David admits that his natural inclination is to juggle multiple projects at once, sometimes leading to burnout for himself and his team. He learned the hard way that execution without a clear plan leads to failure.

“The lack of planning leads to stress. You cannot execute well if you don’t have a plan,” David noted. Before expanding, he conducted thorough market research, and it is this level of preparation that made Mama Lou’s expansion a calculated, strategic move rather than a leap into the unknown.

David Sison’s journey is a masterclass for Filipinos who want to get into the restaurant business. Entrepreneurs can learn much from David’s story: start with a strong foundation, invest in systems, and above all, prioritize people.

 

RJ Ledesma (www.rjledesma.com) is a Hall of Fame Awardee for Best Male Host at the Aliw Awards, a multi-awarded serial entrepreneur, motivational speaker, and business mentor, podcaster, an Honorary Consul, and editor-in-chief of The Business Manual. Mr. Ledesma can be found on LinkedIn, Facebook and Instagram. The RJ Ledesma Podcast is available on Facebook, Spotify, Google and Apple Podcasts.

ledesma.rj@gmail.com

Mastercard Strive signs up 15 service providers

Mastercard Strive signs up 15 service providers
MASTERCARD’s partnership with Boost Capital has onboarded 15 service providers that it said would bolster access to digital financial services for more than 10,000 micro and small enterprises (MSE) in the Philippines .

“Small business owners can focus on growing their businesses rather than waiting in line at a bank to fill out an application,” Boost co-founder Gordon Peters said in a statement on Thursday. “Instead, they just chat with the bank through Messenger or Viber. It’s a huge time saver for women entrepreneurs, and a huge expansion in the customer base for the banks.”

The program under Mastercard Strive onboarded five times more partners than its initial goal. Companies include Asialink, Paymongo, UNO Digital Bank, RAFI Microfinance and Cantilan Bank, which together serve more than 25 million clients nationwide.

“Boost’s white-labeled tech lets financial service providers expand their customer reach even further, so they can now onboard small businesses anytime and anywhere by using Facebook Messenger and Viber for bank applications and payment processing,” Mastercard said in the statement.

Mastercard Strive, which is a portfolio of philanthropic programs, supports the digitalization of small businesses globally. The Mastercard Strive program in the Philippines is delivered by Caribou.

“We launched this program because micro and small businesses, especially those led by women, are a vital part of the Philippine economy,” Mr. Peters said. “Boost’s tech can address the barriers they face in accessing financial services.”

He said they expect 15 partner-companies to launch in less than four months Boost’s chat-based onboarding for loans, savings accounts and payment processing for small business customers. “Between them, these financial service providers serve more than 25 million clients already, so we’re optimistic we’ll impact far more than the 10,000 small businesses we initially set out to serve.”

He added that demand was strong for Boost’s chat-based technology because banks and payment systems in the Philippines want to serve MSEs, especially women-led businesses.

Boost co-founder Lucinda Revell said Mastercard allowed them to enhance their artificial intelligence (AI) technology, which now includes advanced dialect recognition and expanded document validation capabilities. — Aaron Michael C. Sy

Stuff to Do (02/28/25)


Attend a mini book fair, exhibit at Fundacion Sansó

ART books and Filipiniana titles will be showcased at “One for the Books,” a mini book fair on March 1 at Fundacion Sansó. It also serves as the official end of Dibujo: Sketches by Juan Luna and Juvenal Sanso, an exhibition in collaboration with Rising Sunday Foundation under ICArE (Initiative for the Continuation of Artist’s Estate). There will be rare books from the Ayala Museum, the Fundacion Sansó Museum Shop, Vibal Publishing, Tahanan Books, Federico Magat, and more. Special guests will be giving talks in the afternoon: Esperanza Gatbonton at 1 p.m., and Czar Kristoff JP at 2 p.m. Admission is free. Fundacion Sansó is located at 32 V. Cruz, San Juan City.


Go to The Itchyworms concert at Newport

FILIPINO BAND The Itchyworms are set to stage the concert, Good Time Show, at the Newport Performing Arts Theater in Pasay City on March 1, 8 p.m. Presented by Aexponent Media Productions, the special concert will benefit the Philippine Science High School community. The concert’s title refers to the band’s iconic, generation-defining album, Noontime Show, which catapulted them to mainstream success. It will feature intricate musical arrangements by the Manila String Machine on select tracks and a special guest performance from The CompanY. Tickets are available via TicketWorld, with prices ranging from P1,800 to P7,000.


Attend Denise Weldon’s exhibit walkthrough

TO END Arts Month and to kick off Women’s Month, “Witness of the Quiet: A Photographer’s Talk & Meditative Experience” will be held at the Yuchengco Museum in Makati on March 2, 3 p.m. The event blends visual storytelling and mindfulness, with renowned photographer Denise Weldon guiding guests to explore the beauty of stillness through the photographs in her exhibit, Witness of the Quiet. This will be followed by an intimate meditation circle. The walkthrough and experience will take place at the Photography Gallery on the 4th floor of the Yuchengco Museum, with a fee of P500. Participants are invited to come in comfortable clothing, with a yoga mat or towel and a journal. Register via https://bit.ly/PTMEDW500.


View the Lenten season exhibit at Ali Mall

THE new exhibition, Mater Dolorosa, will be opening on March 2 at the MacArthur Activity Area on the ground floor of Ali Mall in Cubao, Quezon City. As a kickoff to the Lenten season, the exhibit showcases religious statues that reflect themes of sorrow, strength, and compassion. It runs until March 13.


Watch a cinematic reimagining of Nosferatu

A BRAND new take on Nosferatu is now on the big screen, helmed by director Robert Eggers. Starring Bill Skarsgård, Lily-Rose Depp, and Nicholas Hoult, the folk legend comes alive in rural Europe, with the goal to project the mythic terror that the vampire character is known to embody. “The folk vampire is not a suave dinner-coat-wearing seducer, nor a sparkling, brooding hero. The folk vampire embodies disease, death, and sex in a base, brutal, and unforgiving way. This is the vampire I wanted to exhume for a modern audience,” Mr. Eggers said in a statement. Nosferatu is screening nationwide in Philippine cinemas.


Listen to Plume’s new single about unexpected love

ALTG RECORDS artist Plume has released a new single, “Kidlat,” about the beauty of falling in love unexpectedly. “It is a reflection on how love can surprise you when you least expect it — when you think you’re done with the idea of romance, only to find your heart opening again,” the Baguio-based singer said of his new track. It was recently featured in GMA Network’s series Mga Batang Riles and is now streaming on all digital music platforms worldwide.


See Maris Racal, Anthony Jennings’ movie on Netflix

SOSYAL CLIMBERS is the first Netflix Original with ABS-CBN. Now available on the platform, it stars Maris Racal and Anthony Jennings as a financially struggling couple who are mistaken for new residents of a posh neighborhood and play into the charade to fool the upper class and have a taste of luxury. The two test their skill, charm, and love for each other as their scheme goes too far.

NLEX Corp. taps China Road for NLEX–C5 Northlink project

NLEX.COM.PH

NLEX CORP. has partnered with China Road and Bridge Corp. (CRBC) for the construction of the new NLEX–C5 Northlink segment, the Metro Pacific Tollways Corp. (MPTC) unit said on Thursday.

In a media release, NLEX said it had signed a contract with CRBC for the NLEX–C5 Northlink Segment 8.2 Section 1A project, which has an overall cost of P2.2 billion.

The elevated road will extend the NLEX Mindanao toll plaza to Quirino Highway in Novaliches via an expressway crossing the Tullahan River in Quezon City.

“The Metro Pacific Group actively contributes to driving infrastructure development across the Philippines, focusing on supporting nation-building through an extensive tollway network,” MPTC President and Chief Operating Officer Arrey A. Perez said.

“NLEX–C5 Northlink Segment 8.2 Section 1A will offer 24/7 access for all vehicle classes, facilitating smoother and more efficient travel across the east and west routes of North Metro Manila.”

The entire NLEX–C5 Northlink project spans 11.3 kilometers and is expected to ease daily traffic congestion along parts of Mindanao Avenue and Quirino Highway by providing a direct route for motorists.

MPTC is the tollway unit of Metro Pacific Investments Corp. (MPIC), one of the three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Can domestic savings cover the country’s increasing investment needs?

In 2024, the country’s savings rate — defined as gross domestic savings as a percentage of gross domestic product (GDP) — grew to 9.3%, reaching P2.47 trillion. Meanwhile, the investment rate was 23.7% of GDP, or P6.27 trillion, resulting in a P3.8-trillion gap. The savings-investment gap (S-I) gap — the difference between gross domestic savings and gross capital formation — shows a country’s ability to finance its overall investment needs. An S-I deficit occurs when a country’s investment expenditures exceed its savings, forcing borrowing to fund the gap.

Can domestic savings cover the country’s increasing investment needs?

EV-killer cobalt has backfired, Wile E. Coyote-style

MICHAEL FOUSERT-UNSPLASH

LISTENING to the various “yes, but” theoretical challenges raised to the energy transition over the years has at times felt like watching Road Runner cartoons.

Time and again, portentous and alarming arguments have been dragged out — like the cartoons’ antagonist Wile E. Coyote, hauling along an Acme Rocket-Sled to catch his feathered prey — only to backfire spectacularly, leaving the proponents frazzled. Meanwhile the energy transition, undaunted, has sped onward.

The latest EV-killer to run into the canyon has been cobalt. The Democratic Republic of Congo, which produces about three-quarters of the bluish-silver metal used in lithium-ion batteries, has suspended output for four months to help mop up a glut that’s caused prices to slump to their lowest levels in decades.

It wasn’t meant to be this way. At pretty much any point over the past decade, wise heads were warning that a looming shortage might stop the rise of electric vehicles in its tracks.

“A Cobalt Crisis Could Put the Brakes on Electric Car Sales,” Wired magazine warned in 2020. Prices might surge north of $600,000 a metric ton, an International Monetary Fund study cautioned the following year, about 30 times the current price. There simply isn’t enough cobalt in global mine reserves, and we may be better off reinventing the internal combustion engine instead of switching to electric cars, according to a 2021 report for the Geological Survey of Finland.

How did all those predictions turn out so wrong? If you’d paid attention to the history of commodities, you’d have known the answer long ago.

Permanent shortages of raw materials are almost unheard of in human history. That’s a consequence of the laws of supply and demand: When demand for a material runs too far ahead of supply, prices rise. Consumers respond by using less, while producers rush to get more of it to market. The result is a price slump and, typically, a return to equilibrium.

That’s precisely what we’ve seen in the cobalt market over the past decade. The metal helps pack extra energy into a lithium-ion battery, so seemed critical in the early years of EVs when manufacturers were struggling to develop vehicles which could travel for more than a few hundred kilometers on a charge.

The shortage of global supplies was a concern from the outset, though. By the middle of the 2010s, cell-makers were working to shift from the NMC 111 chemistry — which used equal quantities of nickel, manganese, and cobalt — to NMC 811 and NMC 955, which were respectively 10% and 5% cobalt.

Miners, meanwhile, were finding far more of it than anyone expected. In Indonesia, weathered nickel-rich rock contains just the right proportion of cobalt for an NMC battery. Now a country whose production was negligible has become the world’s second-largest producer. In Congo, hunger for another energy-transition metal — copper — caused cobalt output to more than double in five years, thanks to the way local ores contain a mixture of the two elements.

The coup de grâce came from China’s lithium-ion battery giants Contemporary Amperex Technology Co. and BYD Co. Rather than scrimping on your use of cobalt with NMC 811 and NMC 955 batteries, why not give up on it altogether? The rival lithium-iron-phosphate or LFP cathode chemistry, long overlooked as a technology more suited to golf carts than performance cars, has improved by leaps and bounds — driven by the necessity of innovation in the face of cobalt’s tight market.

These days, LFP batteries have energy densities that match the best NMC cathodes from the early 2020s, cost about half as much, and are installed in nearly 50% of Chinese EVs. Premium overseas carmakers are joining the club: Audi AG, BMW AG, Mercedes-Benz Group AG, and Tesla, Inc. are all now selling or developing LFP-based models.

The result of all this is a bust, even as EVs boom. “Cobalt is far less important than imagined,” a spokesman for China’s CMOC Group Ltd., the biggest miner of the metal, told Bloomberg News last year. “EV batteries will never return to the era that relies on cobalt.”

Demand for cobalt sulfate, the compound used in batteries, has already nearly topped out. Having doubled to about 160,000 metric tons a year since 2019, it will tick up to just over 180,000 tons by 2027, where it will plateau for the foreseeable future, according to forecasts out to 2035 by BloombergNEF. That’s in marked contrast to other battery metals such as lithium, nickel, and manganese, which are expected to experience ongoing growth.

Cobalt won’t go away entirely — but in future it will increasingly occupy a niche position at the most performance-oriented end of the EV market. There’s a rich irony in this. For years, people have warned that this one metal would kill off electric cars and keep the world hooked on gasoline. To the extent that cobalt still has a future now, it’s because that prediction turned out to be spectacularly wrong.

BLOOMBERG OPINION

Manulife Philippines eyes ‘double-digit’ growth

MANULIFE Philippines expects double-digit growth across all its business metrics this year, its top official said on Thursday.

“Our forecast for the future years continues to be positive and we are aiming to continue growing at a faster rate moving forward,” Manulife Philippines President and Chief Executive Officer Rahul Hora told reporters. “We target double-digit growth across our key financial metrics.”

The company’s growth will be driven by the Philippines’ dominantly young demographic, he added. He declined to give exact figures.

In the past five years, Manulife Philippines has paid claims worth P12.9 billion, the company said in a separate statement.

“The Philippines is a market which has a lot of young people for whom our products are extremely relevant. That market on a year-on-year basis keeps growing,” he said.

Mr. Hora said the country’s continued economic growth would boost disposable income, which would contribute to the industry’s overall growth.

“The economy of the country continues to do well, which means people are going to become richer, and hence, disposable income for them will increase,” he said. “So all those factors are contributing to the growth in the industry.”

Mr. Hora said Manulife Philippines would continue to create products that fit the demands of customers to supplement its growth.

“We do a lot of research to first understand what the customers want, and then we try to bring products which are relevant to our customers,” he said. “That to me is the most important reason why we are very bullish about our growth prospects in the country in the years to come.”

Mr. Hora said longevity and mental health are two themes that the company would incorporate in its product design this year because they expect these to trend.

In the past five years, Manulife Philippines has paid claims worth P12.9 billion, the company said in a separate statement.

Manulife Philippines’ premium income stood at P15.83 billion as of end-2024, up by 1.78% from a year earlier. Net income rose 46.2% to P2.78 billion. — Aaron Michael C. Sy

Lufthansa Technik pandemic layoffs upheld by CA

LUFTHANSA-TECHNIK.COM

THE Court of Appeals (CA) has upheld the validity of Lufthansa Technik Philippines’ retrenchment program in dismissing a petition filed by former employees who had claimed illegal dismissal.

The appellate court’s Second Division found that the National Labor Relations Commission (NLRC) did not commit grave abuse of discretion in upholding the dismissal of the employees, as the decision was supported by substantial evidence.

It acknowledged that Lufthansa Technik’s serious financial losses due to the COVID-19 pandemic, with a loss of $28.9 million in 2020 and projected further losses in 2021, justified the retrenchment program as a necessary measure to prevent further losses.

“In sum, for a valid retrenchment, the employer must show that: (a) retrenchment was a necessary measure to prevent substantial and serious business losses; (b) it was done in good faith and not to defeat employees’ rights; and (c) the employer was fair and reasonable in selecting the employees who will be retrenched,” according to the 17-page ruling written by Justice Perpetua Susana T. Atal-Paño.

The ruling, released on Feb. 18, found that Lufthansa Technik implemented the retrenchment program in good faith, noting the various cost-cutting measures taken by the company before the retrenchment, including the cancellation of planned capital expenditure, alternative work schemes, dismissal of probationary and contractual workers, and offers of early retirement packages.

The tribunal also determined that the company used fair and reasonable criteria in selecting employees for retrenchment.

The criteria included competencies and skills, performance, values and behavior, potential, and seniority. The employees who were retrenched had the lowest scores based on these criteria.

The CA also noted that the company complied with the procedural requirements of Article 298 of the Labor Code, including serving notices of termination to affected employees, submitting an Establishment Report to the Department of Labor and Employment, and paying separation pay to the retrenched employees.

Meanwhile, it rejected the petitioners’ claim that they were entitled to higher separation pay based on an “Employees’ Manual,” as the document was not a valid Collective Bargaining Agreement (CBA) item.

The manual lacked essential particulars, such as the parties involved and the date of the agreement, and was not signed by either party, it noted.

“We are also not impressed with petitioners’ assertion that they must be paid 200% of their wages as their separation pay for every year of service in accordance with a purported CBA. A review of the records reveals that petitioners referred to a document denominated “Employees’ Manual” as the applicable CBA to them,” the ruling said.

“It provides that a retrenched employee shall be entitled to any of the following whichever is highest: a) at least one (1) month of pay for every year of service; b) benefits under the retirement plan; or c) entitlement under existing legislation,” it added.

The case originated from separate complaints filed by seven workers, who were regular employees of the company.

They alleged they were constructively dismissed due to an improperly implemented retrenchment program during the COVID-19 pandemic.

The employees claimed that the company did not adhere to its “last in, first out” policy and that they were not given notice of their subpar performance ratings.

The Labor Arbiter initially dismissed the employees’ complaint, a decision that was later reversed by the NLRC.

However, the NLRC eventually reversed its decision and affirmed the Labor Arbiter’s ruling, with a modification awarding nominal damages to the employees. — Chloe Mari A. Hufana

Hollywood fights to keep its role as the world’s film capital

NATHAN DEFIESTA-UNSPLASH

LOS ANGELES — Behind the glitz of the movie awards season that culminates with the Oscars on Sunday, Hollywood is fighting a battle to keep its place at the center of the global film business.

None of the 10 best picture contenders to be celebrated at Hollywood’s Dolby Theater were filmed in Los Angeles (LA), home to most major film companies for more than a century. Nominee Wicked, for example — a prequel to the classic movie The Wizard of Oz — was filmed in Britain.

Movie and TV production has been exiting Hollywood for years, heading to locations with tax incentives that make filming cheaper. Crew members were hoping for a rebound in Los Angeles after strikes by writers and actors in 2023, but statistics show the comeback has been slow.

The wildfires that destroyed sections of Los Angeles in January accelerated concerns that producers may look elsewhere, and that camera operators, costume designers, sound technicians, and other behind-the-scenes workers may move out of town rather than try to rebuild in their neighborhoods.

“There are a lot of people that haven’t worked in a while because of the strikes and everything, and now the fires,” said Samantha Quan, producer of Oscar best picture nominee Anora, filmed in Brooklyn, New York, and Las Vegas. “I think it’s been a good wake-up call for everyone to push for production to go back to Los Angeles.”

Advocates have launched a “Stay in LA” campaign, hoping to capitalize on the goodwill toward Angelenos following the fires. A petition calls for politicians to lift the cap on tax incentives for filming in the city for the next three years as part of the wildfire recovery effort.

They also are urging studios to commit to increasing production in LA by at least 10% over the next three years.

Gavin Newsom, California’s Democratic governor, has proposed boosting the state’s film and TV tax credits to $750 million a year, up from $330 million annually.

Filmmaker Sarah Adina Smith, an organizer of the “Stay in LA” campaign, said she backed that increase but called on the state to do even more, including making permitting easier.

“We’re not saying that everything should be shot in LA, but it’s almost never an option anymore,” she said.

Ms. Smith said she had developed a show in which “the entire culture of it was LA and Malibu.”

“When it came time to budget that show, they had us choose between South Africa and Australia,” she said. “LA was never a contender.”

“That’s the kind of thing that needs to change, because I think it’s really short-sighted of us to lose this absolutely amazing industry and legacy we have here,” she added.

More than 21,000 people have signed the “Stay in LA” petition, including big names such as Kevin Bacon, Zooey Deschanel, Bette Midler, Keanu Reeves, and Olivia Wilde.

“I hope people realize how important it is to bring jobs to LA,” said Susan Sprung, chief executive officer (CEO) of the Producers Guild of America. “We have the best crews in the world. We have the best producers in the world. Most people live here. They want to work at home.”

PREFERRED FILMING LOCATIONS OUTSIDE US
Permitting data shows production in Los Angeles in 2024 fell to the second-lowest level on record, ahead of only the COVID-19 year of 2020. Production dropped 5.6% from 2023 to 2024 to 23,480 shoot days, according to FilmLA.

A survey of executives by ProdPro found California was the sixth most preferred place to film in the next two years, behind Toronto, Britain, Vancouver, Central Europe, and Australia.

While studios including Walt Disney and Netflix are still based in Los Angeles, that could change, said writer Alexandra Pechman, a “Stay in LA” organizer.

“If they don’t commit to shooting projects here, where their offices are, why are the studios here? Those jobs might pick up and leave too,” Ms. Pechman said.

Duncan Crabtree-Ireland, national executive director of the SAG-AFTRA actors union, said he was optimistic after talks with Hollywood CEOs. One executive told him they had committed to shooting 60 projects in Los Angeles this year.

“I think that we’re going to see this rebuild, but it can’t be fast enough for me,” Mr. Crabtree-Ireland said. “I wish it was immediate.”

Sunday’s Oscars will acknowledge the fires and celebrate the resiliency of Los Angeles, according to organizers. Some speakers may try to rally support for keeping production in Hollywood, as they have at other awards shows.

At February’s Critics Choice Awards, Hacks co-creator Paul W. Downs urged power players in the business to insist on filming in the city.

“The more we tell people that we shoot in Los Angeles, the more we hear, ‘you are so lucky,’” Mr. Downs said. “That shouldn’t be the case because this is an industry town, and we should have more productions in LA.”

“I feel like the people in this room have the power to make that happen,” he added, “so we need to ask to shoot our shows here in LA.” — Reuters