THE POSITION OF WCSI EMPLOYEES ON THE ISSUE OF ALORICA

ACQUISITION
The announcement of Aloricas strategic acquisition of West Corporation s agent
services/businesses last 07 January 2015 for $275 million makes it one of the major
players in the Business Process Outsourcing industry.
On that same day, West Contact Services, Inc. (WCSI), the Philippine subsidiary of West
Corporation, revealed its divestiture. Tom Barker, West Corporations Chairman and CEO
said that the divestiture is consistent with the Company's stated objective of focusing on
higher growth and more profitable assets. 25,300 employees will be transferred to Alorica
as a result of the acquisition, leaving West Corporation with 9,700 people. But, the latter
will retain a portion of its agent services/businesses (e.g. Health Advocate, business-tobusiness and cost containment services).
Comprised of 5,500 employees based in Makati and Mandaluyong sites, West Contact
Services, Inc. has a majority of tenured employees with no less than three (3) years of
service in the company.
Before the news of the acquisition broke out, the management has failed to communicate
the said undertaking and its possible effect (change on basic salary scale, tenure, benefits,
etc.) to its largest stakeholder: its employees. Employees are part of this acquisition or of
any action the management will take. WCSI employees recognize that all managerial
powers are vested to the employer and its representatives, therefore, the former cannot
question the latters decision to, for example, engage in a legitimate business activity such
as acquisition. But, in the case of Philippine Airlines vs. NLRC, decided by the Supreme
Court in 1993, the High Court said: The exercise of managerial rights and prerogatives is not
unlimited. A line must be drawn between management prerogatives regarding business
operations per se and those which affect the rights of its employees. In treating the latter,
management should see to it that its employees are at least properly informed of its decisions
and modes of action.
In addition, WCSI employees believe that the acquisition is not because of any serious
business and financial losses. Since the 2nd quarter of 2014, WCSIs Stock Quote in
NASDAQ made several all-time high: $27.67 in 17 June 2014, $30.50 in 19 September 2014,
$32.03 in 5 November 2014, $33.25 in 10 December 2014, and $34.78 in 23 January 2015.
They believe Aloricas acquisition is due to the $580 million revenue in 2014: revenues of
the businesses it will acquire; revenues made possible by its labor force.
With the arguments stated, the employees whose signatures are affixed on this position
paper, respectfully request for clarifications, and if the situation calls for it, table
negotiations regarding some of the pressing issues, to wit:
1.
2.
3.
4.

Options for separation/severance pay;

Non-diminution of basic salaries and benefits;
Security of tenure and seniority rights of employees, and;
Floating status of employees.
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