The heightened merger and acquisition activities in the Philippine banking industry can lead to massive labor retrenchments, the Trade Union Congress of the Philippines warned yesterday.

TUCP spokesperson Alex Aguilar, in a statement he issued, appealed to the banks concerned to go slow in laying off workers, if not totally avoid temporary or permanent loss of employment and income on the part of affected bank staff. He urged the surviving entities in the mergers "to unconditionally honor all existing labor contracts or collective bargaining agreements with existing unions.

Banco de Oro Universal Bank and Equitable PCIBank Inc. recently merged, but Aguilar said EPCIBank's rank-and-file labor union "is having issues with the new management" of the surviving entity, BDO, the statement added. China Banking Corp. had declared that it is acquiring 87.51 percent of Manila Banking Corp. for P1.8 billion.

Philippine Trust Co. also acquired 58.26 percent of the Philippine Bank of Communications for P3.01 billion.

Allied Banking Corp. is expected to merge shortly with Philippine National Bank after the latter settled all its obligations with the state-run Philippine Deposit Insurance Corp. The Bangko Sentral ng Pilipinas said last week it was expecting up to five more bank combinations in the years ahead as the industry landscape shifted toward further consolidation, the statement also said.

BSP governor Amando Tetangco Jr. said that for reasons of size, competition and strategic footing, regulators were expecting four to five more bank mergers over the next three to five years.*

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