If Petilla can offer his head, why can’t Ducut and Ocampo do the same?

The news of Department of Energy (DoE) Secretary Jericho Petilla tendering his resignation in the wake of failure to meet his self-imposed deadline in bringing back electricity to areas ravaged by typhoon Yolanda is all over the air.  Whether the President will accept his resignation or not can be part of a ploy. But nevertheless, Petilla had the guts to place his head on the chopping board.

We wonder, however, if other inept officials in the energy family – particularly Energy Regulatory Commission (ERC) Chairperson Zenaida Ducut and Philippine Electricity Market Corporation (PEMC) head Mel Ocampo can do the same.

Petilla who heads the DoE is equally responsible for the government's failure to stop the P4.15/kWh rate increase imposed by Meralco.  But Ducut and Ocampo who are in the frontline and supposed to be the first persons to detect market failure and protect consumers' welfare stood idle before the coming tsunami of power hikes. They therefore should go.

Truth is, throughout their tenures, they have consistently failed to discharge their duties of regulating the power industry properly. The latest fiasco is just the culmination of years of ineptitude and incompetence.

As early as 2012, they were aware of scheduled maintenance shutdown and yet they did nothing to prevent the largest market failure in the power sector to date. In the process they unduly enriched Independent Power Producers (IPPs) to the tune of 10 billion pesos for a month's worth of power outages!

They should go based on the principle of command responsibility. At the least, they allowed the electricity market to be gamed, and at the most, they are a party to the reported collusion among power firms.

Ducut and Ocampo should be investigated for possible charges of economic sabotage.

It's also the time for the regime of Electric Power Industry Reform Act (EPIRA) to go.

- NAGKAISA! Statement

Integrated Coastal Ecosystem Management program proposed

A lawmaker is pushing for an integrated coastal ecosystem management blueprint to preserve the country's coastal and marine environment while promoting sustainable economic development.

"The extent of the marine territory of the country is seven times its land area, yet there is no comprehensive plan to sustainably exploit the vast marine wealth. Ironically, land-based economic activities have largely contributed to the devastations of coastal and marine areas," TUCP Party-list Rep. Raymond Democrito Mendoza laments.

Mendoza is author of HB 2332 to be known as “An Act Adopting Integrated Coastal Ecosystem Management (ICEM) as a national strategy to ensure the sustainable development of the country's coastal and marine environment and establishing support mechanisms for its implementation."

The ICEM, Mendoza said, shall be implemented in all coastal and marine areas, addressing inter-linkages among associated watersheds, estuaries and wetlands, and coastal seas, by all relevant national and local agencies.

Despite the significant contribution of the coastal and marine areas to the nation's GDP, development planning in the Philippines is still described as largely land focused, the author pointed out.

The country is among the world's largest archipelagic states, composed of some 7,100 islands or 300,000 sq. km. of land area and some 36,000 km. of coastline, and covering an exclusive economic zone of about 2.2 million sq. km.

Almost half of the nation's population lives in coastal areas and the annual benefit derived from coastal ecosystems is estimated at probably more than P180-billion. Some experts estimate that the contribution of coastal areas to the annual GDP can even be as high as 60%, Mendoza revealed.

"In 2006 alone, GDP was at P5.4-trillion. A World Bank and DENR report/survey also showed that in 1996 80% of the coastal households lived below the poverty threshold," Mendoza added.

He pointed out that the fisheries sector is most significant if only for the number of people dependent on it. In 1996, there were about a million fishermen, 68% of whom were municipal or small-scale fishermen. Fisheries contribute about 2-4% of GDP.

"Maritime transport contributes significantly to the growth of the transportation sector, which as a whole contributed about 7% to GDP. Coastal tourism is a major growth area, with 18 of the top 25 tourist attractions of the country located in coastal areas," Mendoza said.

Furthermore, he said that Mining is coastal areas is also expanding mostly in oil and gas and major industrial areas are located in the coastal zone, where water is used for industrial processes or for transport of raw materials and products.

Under HB 2332, a national ICEM Program shall be developed by the DENR, in consultation with other concerned agencies, sectors, stakeholders, within one year from the effectivity of the Act to provide direction, support and guidance to the local government units and stakeholders in the development and implementation of their local ICEM programs.

The National ICEM Program shall include principles, strategies, and action plans identified after balancing national development priorities with local concerns, define national ICEM targets and develop a national ICEM coordinating mechanism.

Among other vital provisions, the ICEM programs shall promote the application of best practices, such as, but not limited to: 1) coastal and marine use zonal blue print as a management tool; 2) sustainable fisheries and conservation of living resources; 3) protection and rehabilitation of coral reefs, mangroves, sea-grass, estuaries and other habitats, particularly through implementation of marine protected areas, nature reserves and sanctuaries; 4) development of upland, watershed, catchment areas and urban wide management approaches; 5) Integrated waste management, including sewage, and solid, hazardous, toxic and other wastes by major sources; 6) integrated management of port safety, health, security and environmental protection; and 7) involvement of the private sector/business sector as a partner in ICEM.

All relevant national government agencies and LGUs shall allocate adequate funds for the development and implementation of ICEM programs from their existing budget.

In subsequent budget proposals, the concerned offices and units shall appropriate budget for ICEM program development and implementation including continuing ICEM training and education.

Lawmakers, activists want collusion in power firms investigated by DOJ

Citing possible cartelization or combination by several power firms which led to Meralco’s sharp increase in generation charge this month, a group of lawmakers and social activists filed before the Department of Justice (DoJ) this morning, a petition asking the Office for Competition to conduct an inquiry into the matter.

Executive Order No. 45 series of 2011 has designated the Department of Justice as the Competition Authority in the country. Created under this EO was the Office for Competition which can receive any form of complaint as a basis for inquiry or further study on possible violations of laws prohibiting cartelization, monopolies, or combinations in restraint of trade as defined in competition laws.

The petitioners availed of this remedy after the Energy Regulatory Commission (ERC), with neither public hearings nor conduct of probe into allegations of market abuse, approved en toto the amount of P4.15/kWh that Meralco can recover from its purchase of power this month due to the scheduled shutdown of Malampaya natural gas platform.

Signatories to the letter/petition include Akbayan Representatives Walden Bello and Barry Gutierrez, Representative Raymond Mendoza of Trade Union Congress of the Philippines, economist Maitet Diokno of the Center for Power Issues and Initiatives, Wilson Fortaleza of Partido ng Manggagawa (PM) and NAGKAISA, and Freedom from Debt Coalition (FDC) President Ricardo Reyes.

These groups and individuals were involved in campaigns on the power issue prior to and after the passage of the Electric Power Reform Act or EPIRA. They maintain that the unabated increase in power rates, market concentration and the threat of another power crisis were the results of EPIRA which for the past eleven years produced nothing but escalating rates and diminishing power supply.

In particular, the petitioners pointed to possible collusions by Meralco, First Gas Power Corporation, San Miguel Corporation, Kepco Philippines, Aboitiz Power, Team Energy Corporation, AES Philippines and DMCI Holdings, Incorporated when their plants went into simultaneous and unscheduled shutdown resulting to more load deficits in the Luzon grid and which forced Meralco to buy a more expensive power from the Wholesale Electricity Spot Market or WESM.

“The expected and scheduled maintenance of Malampaya notwithstanding—an event Meralco was aware of more than six months before its occurrence—and Meralco’s claim that such was not anticipated, and the unscheduled shutdown of several power plants that resulted to Meralco’s recourse to expensive electricity from the WESM, are information that point to a contrived scenario of extreme short-term shortage of electricity for the purpose of raising the price of electricity beyond what it would cost to generate it,” said the petitioners.

The petitioners bewailed that the increase in electricity costs can only add to the economic burden of end-users and consumers who, at a time when the whole nation is reeling from the brunt of Typhoon Yolanda and in anxious anticipation of the holiday season, face increases in prices of basic commodities like liquefied petroleum gas, Metro Rail Transit fares and the like.

The group vowed to escalate their campaign for the overhaul of EPIRA next year.

Predatory MERALCO price hike slammed by NAGKAISA

Meralco already insured against maintenance shutdowns, Power Supply Agreements cover Meralco risk with power providers

The NAGKAISA labor coalition denounced the December P3.50 per kWh rate increase as an immoral imposition and an unconscionable predatory move in the face of our massive national suffering and despair. Instead of moderating its greed, MERALCO and the generating companies First Gas (Sta. Rita), South Premier Power Corporation (Ilijan) and Therma Mobile, Inc. (San Lorenzo) – which are its cohorts – chose to further impoverish hardworking Filipinos and complicate the already difficult road to national recovery.

MERALCO residential rates currently pegged at Php12.46 per kWh will now be hiked to Php15.96 per kWh, representing a 28% increase. The new rate is equivalent to US$ 37 cents per kWh. That is the highest residential rate, bar none, in the WORLD. Its consequences for families coping with the triple whammy of NAPOLES-scale corruption, spiralling oil and LPG prices, and natural calamities are immense.

For industry, where power rates already constitute 45% to 55% of operational costs, particularly for Small and Medium Enterprises (SMEs) and BPOs, the rate increase will greatly affect their business viability. For the national economy, it compromises our regional competitiveness in the ASEAN and will be a disincentive to locators remaining and to the entry of foreign direct investments.

NAGKAISA pointed out that before a new tariff formula called Performance-Based Rate-making (PBR) was implemented by the Energy Regulatory Commission (ERC), MERALCO only made an annual net profit ranging from Php3 to Php6 billion. Under PBR in 2012, MERALCO declared a net income of Php16.25 billion. For 2013 MERALCO expects a consolidated net income of Php17 billion. NAGKAISA decried this overly-generous rate of return allowed by ERC which allowed MERALCO to earn in just one year what it used to take them 3 years to earn.

NAGKAISA also countered the MERALCO assertion that the maintenance work on Malampaya and resorting to the more expensive sources of WESM would result in a power rate increase of anywhere from Php2 per kWh to Php3.50 per kWh. NAGKAISA argues the following:

• · The scheduled maintenance of Malampaya and other plants should or was already imputed in the MERALCO rate. If MERALCO management did not prudently build this into their rate then the owners and management of MERALCO should bear the loss, not the consumers. The maintenance was scheduled way ahead of time and the cost consequences should already have been placed in the power supply agreements which MERALCO entered into.

• If there is a forced outage, MERALCO and the power producers First Gas (Santa Rita), Therma Mobile (San Lorenzo) and SPPC (Ilijan) from which MERALCO buys its power are insured against possible spikes in costs. Why is MERALCO passing the burden to consumers when there is insurance for forced outages. Again, if MERALCO did not enter into any form of insurance or contract stipulation as to who will pay for the alternative supply in case of an outage (the alternative supply in this case is WESM), then MERALCO again has acted imprudently and should bear the cost of its imprudence.

• MALAMPAYA is providing only a certain percentage of the power needs of MERALCO. Why are the entire costs of the downtime of Malampaya being borne by MERALCO consumers? How did it amount to a possible P3.50 per kWh increase?

• Why has the ERC as regulator not stepped-in to validate the current claims of MERALCO when there are Commission on Audit findings of overcollection in 2004 and 2007 in the generation charges of MERALCO? Does ERC take the manifestations of MERALCO and the generation players as gospel truth?

• Why has the DOE – or the Palace for that matter – not addressed the possibility of resorting to the MALAMPAYA FUND to reduce rates and to cushion the impact if indeed there is a problem not anticipated in the power supply contracts entered into between MERALCO and the generators?

THE TRUTH OF THE MATTER IS THAT CONSUMERS ARE BEING MADE TO ADVANCE WHAT THE MERALCO WILL BE COLLECTING FROM ITS INSURERS EVENTUALLY. When MERALCO entered into its supply contracts, it inputted and covered against all projected events and the cost consequences. These costs were built into the original power supply agreement and are therefore built into the rate. Further, MERALCO insured against all risks. MERALCO IS TRYING TO COLLECT FROM ITS CUSTOMERS BECAUSE IT THINKS IT CAN FOOL THEM. ENOUGH IS ENOUGH.

NAGKAISA has warned that the Wholesale Electricity Supply Market (WESM) does not and cannot work where you have insufficient supply. Given inadequate power supply, there will be no competition to drive down rates because it will be a sellers market. NAGKAISA, as a disinterested party, had already warned the government of this in its meetings with the economic cluster of the Cabinet in April and May 2013. NAGKAISA notes that notwithstanding the notable failure of WESM to bring down electricity prices in Luzon and Visayas, the DOE is currently piloting it in Mindanao where power supply is also inadequate.

NAGKAISA warns that the general public are beginning to realize that the Palace is a defender of MERALCO by its statements that there is “regularity” to the rate increase because it was “in accordance with the law.” NAGKAISA reminds the Palace that it is not for the NAGKAISA or the Palace nor the DOE to determine regularity. That is a function that clearly lies with the ERC. It is the ERC which must determine the course of action to be taken: to set the increase aside or to cushion its impact through rate increases staggered over a longer period of time.

NAGKAISA also reminds the Palace that perhaps something is deadly wrong with the EPIRA Law and that it is time to take a second hard look on how to ensure affordable power and supply that is reliable. We reiterate our call for the creation of a Presidential Task Force to bring down power rates. The Palace should talk to disinterested parties – not the power cartel.

Finally, NAGKAISA reminds the Palace that if in its fight against corruption, it brought down an Ombudsman and a Chief Justice, it can certainly do something about a certain ERC Chairperson named Ducut. Consumer and labor representation in the ERC is long overdue.

On 150th Day of Bonifacio: Broad Labor vows to carry on with the Fight against Poverty, Corruption, Climate Crisis

Marching under the theme “Kalayaan Mula sa Pulitikong Kawatan, Delubyong Kahirapan, Trahedyang mula sa Kalikasan”, some 5,000 members of the broad labor coalition NAGKAISA (United) took to the streets today to celebrate the 150th birth anniversary of the plebeian hero Andres Bonifacio.

The protest, which assembled in the morning at the Mehan Garden for a short program and wreath-laying, marched to Mendiola at noon to call on President Aquino to urgently address corruption, poverty and climate crisis.

The group also demanded that their hero be declared as the first president of the Philippine republic.

Turning in his grave

Josua Mata, NAGKAISA convenor and Alliance of Progressive Labor (APL-SENTRO) Secretary-General, said the miserable state of Filipino workers and the dark clouds of hopelessness hovering above the nation are enough for Bonifacio to be turning in his grave.

“NAGKAISA thus call on the Aquino administration to address the problems of low wages, contractualization, spiraling electricity and water rates, uncontrolled oil prices, forcible demolition of informal settlers and, political patronage and corruption,” said Mata.

He added that the State not only has the duty of providing full protection but also of raising the dignity of labor. “One step to dignify labor’s role in our struggle for independence is to rectify historical errors and proclaim the late Supremo as the first president of the Philippine republic,” he said.

Corruption and elite rule

Among the issues highlighted at the protest was the controversial pork barrel scam. Bukluran ng Manggagawang Pilipino (BMP) president Leody de Guzman said, “Workers are being made to believe the so-called ‘tuwid na daan’ of the Aquino regime. Yet, despite the all-too familiar critique against the Priority Development Assistance Fund (PDAF) for breeding political patronage, this seemingly anti-corrupt administration doubled it in 2010”. The Supreme Court declared the PDAF unconstitutional last November 19.

De Guzman added, “We owe this victory against the PDAF to the thousands that participated in the anti-pork barrel protests since the August 26 Million People March in Luneta. Although we welcome the recent decision of the Court, we call on the people to remain vigilant. Traditional and elitist politicians like senate president Drilon and budget secretary Abad are now seeking loopholes to retain the legislative largesse and the entire pork barrel system. Don’t expect political dynasties to go down without a fight”.

Poverty, low wages and contractualization

At the NAGKAISA mass action, speakers tackled gut-issues such as contractualization, starvation, wages and high power rates. Gerry Rivera, president of the Philippine Airlines Employees Association (PALEA) stated, “PALEA has lifted our picket lines because we have won the battle at PAL through the collective solidarity of NAGKAISA and the entire labor movement. But the fight for regular jobs is not yet over, the scourge of contractualization remains as the number one threat to workers’ rights and welfare”.

Last November 14, PAL management settled with PALEA which members have daringly fought and resisted the company’s outsourcing, contractualization program for 26 months. The settlement wins back the union and its members’ status as regular employees. Renato Magtubo of Partido ng Manggagawa (PM), meanwhile, criticized the Aquino administration for preserving starvation wages.

“Wage Order 18 of the NCR wage board is the lowest pay hike for minimum wages in its entire history. Last May 2012, after Labor Day, Noynoy echoed the capitalist blackmail line against wage increases by threatening us with retrenchment and closures. This yellow government maintains wages far below the cost of living in adherence to its tacit policy of cheap labor,” Magtubo avowed.

Alan Tanjusay, Trade Union Congress of the Philippines (TUCP) spokesperson added that the purchasing power of current wages is falling due to spiraling commodity prices and electricity rates. He said, “Electricity rates in the country are among the highest in Asia, causing not only the unabated increase in prices and the decrease in real wages. High power rates are the single most deterrent to investments thereby preventing job creation that is essential to genuine inclusive growth”.

Climate change and man-made calamities

Nagkaisa bewailed that a century and half hence the birth of Gat Andres Bonifacio and the nation is still in shambles. Super typhoons have become the new normal due to climate change and global warming. The recent disasters brought by earthquakes and storms revealed the government’s ineptitude to respond to natural calamities.

“Unless the Aquino administration becomes an active player in the global campaign for climate justice, for lower carbon emissions from advanced countries and for reparations to devastated Third World countries, it will be forever remembered in history as the worst man-made calamity to hit the nation,” Mata concluded.

Broad labor vows to carry on with the fight against poverty, corruption, climate crisis

On 150th Day of Bonifacio:

Marching under the theme "Kalayaan Mula sa Pulitikong Kawatan, Delubyong Kahirapan, Trahedyang mula sa Kalikasan", some 5,000 members of the broad labor coalition NAGKAISA (United) took to the streets today to celebrate the 150th birth anniversary of the plebeian hero Andres Bonifacio.

The protest, which assembled in the morning at the Mehan Garden for a short program and wreath-laying, marched to Mendiola at noon to call on President Aquino to urgently address corruption, poverty and climate crisis.

The group also demanded that their hero be declared as the first president of the Philippine republic.

Turning in his grave

Josua Mata, NAGKAISA convenor and Alliance of Progressive Labor (APL-SENTRO) Secretary-General, said the miserable state of Filipino workers and the dark clouds of hopelessness hovering above the nation are enough for Bonifacio to be turning in his grave.

“NAGKAISA thus call on the Aquino administration to address the problems of low wages, contractualization, spiraling electricity and water rates, uncontrolled oil prices, forcible demolition of informal settlers and, political patronage and corruption,” said Mata.

He added that the State not only has the duty of providing full protection but also of raising the dignity of labor. “One step to dignify labor’s role in our struggle for independence is to rectify historical errors and proclaim the late Supremo as the first president of the Philippine republic,” he said.

Corruption and elite rule

Among the issues highlighted at the protest was the controversial pork barrel scam. Bukluran ng Manggagawang Pilipino (BMP) president Leody de Guzman said, “Workers are being made to believe the so-called ‘tuwid na daan’ of the Aquino regime. Yet, despite the all-too familiar critique against the Priority Development Assistance Fund (PDAF) for breeding political patronage, this seemingly anti-corrupt administration doubled it in 2010”. The Supreme Court declared the PDAF unconstitutional last November 19.

De Guzman added, “We owe this victory against the PDAF to the thousands that participated in the anti-pork barrel protests since the August 26 Million People March in Luneta. Although we welcome the recent decision of the Court, we call on the people to remain vigilant. Traditional and elitist politicians like senate president Drilon and budget secretary Abad are now seeking loopholes to retain the legislative largesse and the entire pork barrel system. Don’t expect political dynasties to go down without a fight”.

Poverty, low wages and contractualization

At the NAGKAISA mass action, speakers tackled gut-issues such as contractualization, starvation, wages and high power rates.

Gerry Rivera, president of the Philippine Airlines Employees Association (PALEA) stated, “PALEA has lifted our picket lines because we have won the battle at PAL through the collective solidarity of NAGKAISA and the entire labor movement. But the fight for regular jobs is not yet over, the scourge of contractualization remains as the number one threat to workers’ rights and welfare”.

Last November 14, PAL management settled with PALEA which members have daringly fought and resisted the company’s outsourcing/contractualization program for 26 months. The settlement wins back the union and its members' status as regular employees.

Renato Magtubo of Partido ng Manggagawa (PM), meanwhile, criticized the Aquino administration for preserving starvation wages.

“Wage Order 18 of the NCR wage board is the lowest pay hike for minimum wages in its entire history. Last May 2012, after Labor Day, Noynoy echoed the capitalist blackmail line against wage increases by threatening us with retrenchment and closures. This yellow government maintains wages far below the cost of living in adherence to its tacit policy of cheap labor,” Magtubo avowed.

Alan Tanjusay, Trade Union Congress of the Philippines (TUCP) spokesperson added that the purchasing power of current wages is falling due to spiraling commodity prices and electricity rates. He said, “Electricity rates in the country are among the highest in Asia, causing not only the unabated increase in prices and the decrease in real wages. High power rates are the single most deterrent to investments thereby preventing job creation that is essential to genuine inclusive growth”.

Climate change and man-made calamities

Nagkaisa bewailed that a century and half hence the birth of Gat Andres Bonifacio and the nation is still in shambles. Super typhoons have become the new normal due to climate change and global warming. The recent disasters brought by earthquakes and storms revealed the government’s ineptitude to respond to natural calamities.

“Unless the Aquino administration becomes an active player in the global campaign for climate justice, for lower carbon emissions from advanced countries and for reparations to devastated Third World countries, it will be forever remembered in history as the worst man-made calamity to hit the nation,” Mata concluded.

Bill to prohibit credit card companies from imposing hidden charges

A lawmaker has filed a bill prohibiting credit card companies, banks and similar institutions from imposing hidden penalties or costs on purchases and cash advances made by their clients.

Rep. Raymond Mendoza (Party-list, TUCP) filed House Bill 2551 as he noted the urgent need to protect the consuming public from the exorbitant rates being imposed by the credit card companies and banks.

Mendoza said the monthly rates range from 2.5 to 3.5 percent for cumulative non-compounded interest rates of 30 to 42 percent per year.

"With the penalty, late payment fees and other charges compounding, the rate is more than what '5-6' operators charge," Mendoza said.

Mendoza cited the ruling of the Supreme Court on the case of depositor Ileana Macalinao versus Bank of the Philippine Island (BPI) on September 19, 2009.

Mendoza quoted the High Tribunal's decision, which ruled, "We are of the opinion that the interest rate and penalty charge should be equitably reduced to 2 percent per month or 24 percent per annum."

Mendoza said the bill will put into effect the cap on interest rates and penalty charges as ruled by the Supreme Court.

Mendoza said the bill prohibits credit card companies from charging fees for exceeding the cardholder's credit limit.

"Such fees are unconscionable since the credit card companies themselves authorized individual transactions which resulted in cardholders exceeding their credit limits," Mendoza said.

Under the bill, interest rates imposed by credit card companies on purchases and cash advances made through such facility shall in no case be higher than 1 percent per month or 12 percent per annum, without compounding.

Surcharges or penalties shall likewise be limited to a ceiling of 1 percent per month, without compounding.

Barbers and make up artists to get SSS membership soon

A lawmaker has filed a bill protecting the rights and promoting the welfare of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors by facilitating their membership in the Social Security System (SSS).

Rep. Raymond Democrito Mendoza (Party-list, TUCP) said under House Bill 2550, workers in wellness centers, beauty salons, fitness gyms and other interrelated services should be removed from the definition of self-employed under the SSS law.

Mendoza said barbershops, salons, spas, massage parlors, wellness or fitness centers or gyms, and any other similar entity to which the workers regularly report to render their services shall be considered their employers.

"Their employers should deduct and withhold from them the average monthly commissions, earnings, compensation or payment, as an employee's contribution to the SSS," Mendoza said.

Mendoza said the bill, which seeks to amend Republic Act 1161 or the Social Security Law, removes the workers from the definition of self-employed under the SSS law irrespective of the contractual arrangement or their non-recognition as employees.

"These workers would be able to continue being an active SSS member and reap the benefits while they are still working or upon their retirement," Mendoza said.

According to Mendoza, workers of wellness centers or of the barbershops, or any other similar entity, lease the facilities of the centers and bring their own set of clients.

Mendoza said the workers, who are being paid on a per-head basis, earn a commission or share in the payments due from their clients. They are not required to observe office hours or report to the company everyday, and do not devote their time exclusively for one company for they are free to work on any other wellness facility, or to engage in any other employment.

"Under the bill, these workers are considered self-employed, thus they pay their entire SSS membership dues, and there is no one to pay the heftier employer counterpart," Mendoza said.

"Irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, hairstylist, manicurists, make-up artists, masseuse, reflexologists, gym trainers, fitness instructors or dieticians shall not be considered as self-employed," Mendoza added. - Jazmin S. Camero, Media Relations Service-PRIB

Solon seeks additional separation pay for employees terminated due to disease

TUCP Party-List Rep. Raymond Democrito Mendoza has filed a bill seeking to increase the separation pay of employees terminated due to disease.

House Bill 2548 amends Article 284 of Presidential Decree 442, otherwise known as the Labor Code of the Philippines.

Mendoza sought the increase as he stressed that employees terminated due to disease must be treated with compassion for they may never be able to find gainful employment again.

The Labor Code of the Philippines or Presidential Decree 442 as amended, lists and limits the authorized causes for employment termination.

Article 283 of PD 442 allows employer to terminate employment or reduce the total number of personnel due to installation of labor saving devices, redundancy, and retrenchment to prevent losses, and cessation of operations or closure of the establishment. Article 284 of PD 442, on the other hand, allows termination on the grounds of disease.

"In all instances of authorized causes of termination, the separation pay ranges from payment of half month to one month salary for every year of service," Mendoza said.

"It is the policy of the State to afford full protection to labor and continuously endeavor to provide for security of tenure to workers and ameliorate the welfare of those who have been removed from employment for causes other than their own fault," Mendoza added.

The measure seeks the increase of separation pay of employees terminated due to disease, from one month's salary or one-half month salary for every year of service, to the equivalent of at least six months salary or two months salary for every year of service, whichever is greater.

Also, the bill institutionalizes the issuance of a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six months even with proper medical treatment before an employee can be terminated for the disease.

The measure also mandates that should the employee terminated due to sickness regain his health, he shall be entitled to reinstatement to his or her former position without loss of seniority.

Bill to give foreign workers the right to self-organization

A lawmaker has filed a bill extending to foreign workers the right to self-organization while in the Philippines.

Rep. Raymond Democrito Mendoza (Party-list, TUCP), author of House Bill 2543, said the right to self-organization is a universal human and worker’s right and as an International Labour Organization (ILO) member-country, the Philippines recognizes the right to self-organization, with the ratification of ILO Convention No. 87 on Freedom of Association.

The bill seeks to amend Presidential Decree 442 as amended, also known as the Labor Code of the Philippines.

Mendoza said the Philippines should adhere to the principle of equal treatment of migrant workers and national workers as regards to trade union membership and collective bargaining.

"The trade union movement draws strength from the solidarity of workers and their organizations, whether inside or outside the country or both," Mendoza said.

Under the measure, all aliens, natural or judicial, as well as foreign organizations, with valid permits issued by the Department of Labor and Employment (DOLE), may engage directly or indirectly in all forms of trade union activities but only through normal contacts between Philippine labor unions and recognized international labor centers.

The bill provides that foreign individual, organization or entities may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly, to any labor organization, group of workers or any auxiliary, such as cooperatives, credit unions and institutions engaged in research, education or communication, in relation to trade union activities. - Jazmin S. Camero, Media Relations Service-PRIB

NAGKAISA! lauds settlement of PAL-PALEA dispute

We welcome with great enthusiasm the amicable resolution of the PAL-PALEA labor dispute this afternoon. We congratulate both the new management of the Philippine Airlines (PAL) and the leadership of the Philippine Airlines Employees Association (PALEA) for coming into an agreement that finally settled the country’s biggest labor dispute in recent years.

The labor movement that we represent considers this as one positive news amid the harrowing devastations brought upon us by typhoon Yolanda. It can be recalled that PALEA members were locked out and outsourced at the height of typhoon Pedring on September 27, 2011. Now after Yolanda and with this final agreement, PALEAns are assured of re-employment as regular workers and getting a much improved financial package than what was granted to them by the labor department and the Office of the President (OP). This is sweet victory, indeed.

Yet this is not just a victory for PALEA. This is likewise victory for Nagkaisa!, in fact the first for the coalition’s campaign against precarious work and contractualization. When we embraced PALEA’s call, “Ang laban ng PALEA ay laban ng lahat!”, we thereby considered this struggle as our own. This is victory to all Filipinos who continue to struggle for decent work.

Nagkaisa! regards this victory as an inspiration in pushing further for the enactment of the security of tenure bill, reforms in wage fixing mechanisms, and other agenda that promote the interest and welfare of Filipino workers.

The NAGKAISA Convenors: Alliance of Free Workers (AFW), All Filipino Workers Confederation (AFWC), Automobile Industry Workers’ Alliance (AIWA), Associated Labor Unions (ALU), Associated Labor Unions – Association of Professional Supervisory Officers Technical Employees Union (ALU-APSOTEU), ALU-Metal, Associated Labor Unions-Philippine Seafarers’ Union (ALU-PSU), ALU-Textile, ALU-Transport, Associated Labor Unions-Visayas Mindanao Confederation of Trade Unions (ALU-VIMCOMTU), Alliance of Progressive Labor (APL), Association of Trade Unions (ATU), Bukluran ng Manggagawang Pilipino (BMP), Confederation of Independent Unions in the Public Sector (CIU), Confederation of Labor and Allied Social Services (CLASS), Construction Workers Solidarity (CWS), Federation of Coca-Cola Unions (FCCU), Federation of Free Workers (FFW), Kapisanan ng Maralitang Obrero (KAMAO), Katipunan, Pambansang Kilusan sa Paggawa (KILUSAN), Kapisanan ng mga Kawani sa Koreo sa Pilipinas (KKKP), League of Independent Bank Organizations (LIBO), Manggagawa para sa Kalayaan ng Bayan (MAKABAYAN), MARINO, National Association of Broadcast Unions (NABU), National Federation of Labor Unions (NAFLU), National Association of Trade Unions (NATU), National Confederation of Labor (NCL), National Confederation of Transportworkers’ Union (NCTU), National Union of Portworkers in the Philippines (NUPP), National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN), Philippine Airlines Employees Association (PALEA), Postal Employees Union of the Philippines (PEUP), Philippine Government Employees Association (PGEA), Pinag-isang Tinig at Lakas ng Anakpawis (PIGLAS), Philippine Integrated Industries Labor Union (PILLU), Philippine Independent Public Sector Employees Association (PIPSEA), Partido Manggagawa (PM), Philippine Metalworkers Alliance (PMA), Public Services Labor Independent Confederation (PSLINK), Philippine Transport and General Workers Organization (PTGWO), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), Trade Union Congress of the Philippines (TUCP) and, Workers Solidarity Network (WSN)

Belmonte and House leaders spearhead orchestrated response to Yolanda disaster, call for bayanihan

The House of Representatives has been actively working even during the congressional recess as it was able to generate quick response from lawmakers regarding preparations for the resumption of sessions on Monday and outlining the chamber’s agenda that includes two priority resolutions which aim to help victims of super typhoon Yolanda and other calamities.

Speaker Feliciano Belmonte, Jr. said over the past few days, the House leadership conducted a series of meetings with various congressmen and various bodies in preparation for the opening of sessions, which will be on Monday.

"The House Leadership, taking the cue from these various consultations, decided on HR 446 and HJR 7 that have already been filed," said the Speaker during the Ugnayan press conference.

The House leadership headed by the Speaker filed House Resolution 446 "Providing Financial Assistance To The Victims Of Typhoon Yolanda" and House Joint Resolution 7 "Waiving All Rights To The Unreleased Balance Of The 2013 Priority Development Assistance Fund (PDAF) And Authorizing The Executive Department To Realign The Same To The Calamity Fund."

By House leadership, Belmonte said he means the Speaker, Majority Floor Leader, Deputy Speakers and the heads of all the party groups comprising the majority in the House. He said there was also consultation with the House minority, who were also invited to the meetings.

Both HR 446 and HJR 7 are co-authored by Deputy Speakers Henedina Abad, Giorgidi Aggabao, Sergio Apostol, Pangalian Balindong, Carlos Padilla and Roberto Puno, Majority Leader Neptali Gonzales, Minority Leader Ronaldo Zamora, Mel Senen Sarmiento (1st District, Western Samar), Enrique Cojuangco (1st District, Tarlac), Mark Llandro Mendoza (4th District, Batangas), Eleandro Madrona (Lone District, Romblon), Elpidio Barzaga, Jr. (4th District, Cavite), Antonio Lagdameo, Jr. (2nd District, Davao del Norte), Rolando Andaya, Jr. (1st District, Camarines Sur), Mar-Len Abigail Binay (2nd District, Makati City), Nicanor Briones (Party-list, AGAP) and Raymond Democrito Mendoza (Party-list, TUCP).

The Speaker said the House has a third proposal, which cannot be put into writing yet as the 2014 national budget is still pending. This involves the realignment of certain items to create a rehabilitation fund.

“The budget has just passed first reading and is still pending second reading in the Senate, but eventually it will go to the bicam committee meeting and during the bicameral meeting we would like to take steps to realign certain items there which we are trying to study now through the Appropriations Committee to create a rehabilitation fund. Maybe we can grant that the President has the power to realign as we maintain he has, but nonetheless Congress should take steps in view of these tragedies and calamities that have been happening in the country. So, we decided to take the initiative to create that rehabilitation fund and we will see to it that the 2014 budget will not leave the bicam committee without the plan there. The rehabilitation program has minimum of P10 billion but our own version would like it to hit at least P20 billion,” the Speaker said.

Belmonte said a meeting on Monday preceded the meeting of the House leadership regarding HR 446 and HJR 7 on Tuesday with members of the Oversight on Disaster Risk Reduction headed by Rep. Rodolfo Biazon for the House panel.

Prior to this, the Speaker said the House also conducted a meeting with a group of economists headed by former National Economic development Authority (NEDA) Director-General Cielito Habito, in which possible legislations that would support the concept of a more competitive Philippines, were discussed.

He said the House also had a meeting with a group of people associated with the Department of Budget and Management (DBM) during the term of President Fidel Ramos, including Secretary Salvador "Jun" Enriquez, who served as the DBM Secretary for the entire six years of the Ramos Administration.

Aside from the meetings, the House also initiated calls to various sectors to help in raising calamity fund for the victims of super typhoon Yolanda.

"I am calling on residents of Metro Manila, starting with Metro Manila local government units most of whom, if not all, are well funded to contribute to the calamity fund, and we are also calling on business establishments to contribute," said Belmonte.

He said the House is offering Congress as one place where people can drop off their donations. "We will make sure that whatever is dropped off here by way of dry goods, by way of used clothing or anything else...we will see to it that these will be sent to the appropriate places," he said.

Meanwhile, as part of the discussions in the oversight committee on risk reduction, Sarmiento said House members have asked how they can help the calamity-stricken areas in the country. He said an orchestrated response during this emergency phase is what is being planned with the involvement of the different House members.

Meanwhile, the Speaker said House members have also been organizing local officials in the provinces and initiated gathering of relief goods for Yolanda's victims.

"The Governor and Congressmen of La Union called me up to say that they are organizing their whole province to get goods. So I am talking about Governor Manuel Ortega, Congressman Victor Ortega and Congressman Franny Eriguel and Abono Rep. Francisco Emmanuel 'Pacoy' Ortega III. All of them have organized the mayors of their province and they have gathered relief goods. I think that is terrific, and I wish other people who are very fortunate will do the same thing," said the Speaker. - Rowena B. Bundang, Media Relations Service-PRIB

Bill to give members of cooperatives right to organize union

A lawmaker has filed a bill granting members of cooperatives in the country the right to form unions.

Rep. Democrito Mendoza (Party-list, TUCP), author of House Bill 2542, said members of cooperatives should also enjoy similar rights as those of other enterprises, including the right to establish and join organizations of their own choosing.

Mendoza said self-organization should be guaranteed to all workers without distinction or qualification.

The bill seeks to amend Presidential Decree 442, otherwise known as the Labor Code of the Philippines.

Mendoza said cooperatives must respect the rights of their workers to organize or join labor organizations.

"The cooperative's member-owner should guarantee their workers' right to organize for the purpose of collective bargaining," Mendoza said.

Mendoza said the proposed amendment will bring Philippine Law into compliance with the International Labour Organization (ILO) Convention No. 87 on Freedom of Association, which the Philippines is obliged to observed as a member-state of the ILO.

Under the measure, all persons employed in cooperatives, whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. - Jazmin S. Camero, Media Relations Service-PRIB

TUCP slams foreign investors for anti-wage hike stand

The country’s largest labor group debunked yesterday the claim of foreign and local businessmen that increasing the minimum wage would result in mass layoffs and closure of companies.

“This will not happen in the Philippines because those who cannot afford the minimum wage rate can be exempted by law from applying the rate,” TUCP executive vice president Gerard Seno said yesterday in reaction to the warning issued by the Joint Foreign Chambers of the Philippines (JFC) and the Employers Confederation of the Philippines (ECOP).

Seno said employers are heartless for ignoring the condition of workers.

The ECOP and the JFC urged the wage boards to dismiss TUCP’s petition for wage increase. The TUCP filed separate petitions for an increase in the daily minimum wage of workers in Metro Manila by P85 and from P80 to P88 for workers in other regions.

Seno said workers are suffering from rising electricity rates and gas prices. He also cited the impending hike in Social Security System premiums and the Metrorail Transit and Light Railway Transit fares.

“The response to dismiss the petition outright tends to show the top leadership of ECOP and JFC is losing touch with reality and utterly disregarding the economic difficulties being experienced by thousands of Filipino minimum wage earners,” Seno said.

He said it is also unfair to compare the wage rate in the Philippines with those in other countries in Southeast Asia since workers operate in varying political and economic circumstances and procedures.

He said the P456 daily minimum wage in Metro Manila has significantly eroded and is way below the living wage needed to survive in the highly urbanized region.

Seno said JFC and ECOP’s claim would not discourage workers from seeking a wage increase.

TUCP president Democrito Mendoza said they support the business groups’ campaign against smuggling and red tape and the call to bring down the cost of electricity.

However, Mendoza said, the group remains firm in its position to seek an immediate wage hike.

TUCP also called on the different wage boards to objectively focus on efforts to restore the workers’ lost purchasing power and ignore the call of the employers to dismiss the petition for wage hike.

The wage board in Metro Manila is set to hold today a public hearing on the TUCP’s petition for wage increase.

Meanwhile, workers belonging to the militant Kilusang Mayo Uno staged a mass action to push for a P125 legislated wage increase and to abolish the wage boards. — Philippine Star With Michelle Zoleta

NAGKAISA Pre-SONA Rally in Ayala Makati

The NAGKAISA! calls the President to address the imbalance of the rich and the poor and eliminate inequality. Kilusan TUCP joined the NAGKAISA! in the mobilization staged in the country's main business center and the Philippine Stock Exchange in Ayala ave, Makati City , July 18, 2013. STOP INEQUALITY!

SSS coverage for workers in wellness spa, beauty salon, fitness gym sought

A lawmaker is determined to shepherd a measure mandating the compulsory inclusion of thousands of barbers, haircutters or hairstylists, manicurists or pedicurists, make-up artists or beauty professionals, masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians in the coverage of the Social Security System (SSS).

Rep. Raymond Democrito Mendoza (Party-list, TUCP) is hopeful that the proposal, which removes the workers in wellness spas, beauty salons and fitness gyms from the category of self-employed, will ultimately be enacted into law in the next Congress.

The proposal is contained in House Bill 1558, which was authored by Mendoza. It is pending in the House Committee on Government Enterprises and Privatization.

In pushing for the proposal, Mendoza noted the recent growth of wellness centers, which, more often than not, are an amalgamation of beauty and grooming salons, fitness gyms, spas and massage parlors and other interrelated services.

"The industry is the bread and butter of thousands of workers in wellness spas, beauty salons and fitness gyms. Most of these are 'experts' in their individual fields who have undergone professional training. However, in most instances, the services of these persons are merely outsourced by the wellness centers. They are not employed but are treated as independent contractors," Mendoza said.

Mendoza said these workers lease the facilities of the centers and bring their own set of clients. Their compensation or payment is based on a per head basis and they earn a commission or share in the payments due their clients.

He added that they are not required to observe office hours or report to the company every day. They are not devoting their time exclusively for one company and are free to work on any other wellness facility, or engage in any other employment.

"One of the predicaments of these workers is their membership in the SSS. With the above-mentioned arrangement, they are considered as self-employed. Thus, they pay their entire SSS membership dues and there is no one to pay the heftier employer counterpart," Mendoza said.

According to Mendoza, the vision of the measure is to compel owners of the wellness center, barbershop, salon, spa, massage parlor, fitness gym or any other similar entity to which they are affiliated or regularly report to render their services which are considered as their employer to deduct and withhold from the concerned person's average monthly commissions, earnings, compensation or payment, his/her employee's contribution, as well as pay for and remit the counterpart employer's contribution.

"By doing this, these persons would be able to continue being an active SSS member and reap the benefits, while still working or upon their retirement," Mendoza stressed.

The measure amends Section 9-A of Republic Act 1161, as amended, otherwise known as the “Social Security Law,” by compulsory including, irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, haircutters or hairstylists; manicurists or pedicurists; make-up artists; masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians, and shall not be considered under the category of self-employed.

"The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. The social security of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors, and other interrelated services should always be protected and promoted," Mendoza said. - Lorelei V. Castillo, Media Relations Service-PRIB

Solon seeks increased separation pay for employees terminated due to disease

A lawmaker is seeking an increase of separation pay of workers given the pink slip due to sickness.

Rep. Raymond Democrito C. Mendoza (Party-list, TUCP) said employees terminated due to disease should be treated with compassion and differently from other causes.

"The reason is obvious. An employee terminated due to such a disease will no longer be able to find gainful employment as compared to those who were terminated due o redundancy and related causes," Mendoza said.

Mendoza cited Article 283 of the Labor Code of the Philippines which states that the employer may terminate employment or reduce the total number of personnel due to installation of labor saving devices, among others.

"On the other hand, Article 284 of the Labor Code of the Philippines or Presidential Decree No. 442 allows termination on the ground of disease," he said.

Mendoza said in all the said instances of authorized causes of termination, the separation pay ranges from payment of half (1/2) month to one-month salary for every year of service.

House Bill 893 seeks the increase of separation pay of employees terminated due to disease to at least six months salary or two months salary for every year of service, whichever is greater.

Likewise, the bill institutionalizes the issuance of a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six months even with proper medical treatment before an employee can be terminated for this cause.

The bill further mandates that should the employee terminated on such ground regain his health, he shall be entitled to his former position without loss of seniority. - Ma. Victoria I. Palomar, Media Relations Service

Kilusan TUCP on Labor Day 2013

Protection of workers during business overhauls pushed

The country's largest organization of labor federations and unions will continue to fight for the protection of workers and the preservation of their jobs during mergers, consolidations or transfer of businesses.

Rep. Raymond Democrito Mendoza of the Trade Union Congress Party (TUCP) Party-List said, any merger, consolidation or transfer of business should not diminish the wages, benefits and other employment terms and conditions of the affected employees.

Mendoza filed House Bill 1557, which seeks to oblige the acquiring or transferee employers to continue the employment of the transferor employer's employees.

"An employment that has been zealously earned, industriously worked for, valued and treasured should be secured. Protection should extend to remunerations and benefits, with all the enhancements merited due to years of arduous service," Mendoza said.

Mendoza said the TUCP has consistently advocated, not only for job generation, but more importantly, for job protection and preservation.

"Competition among businesses has become tremendously intense that the dictum bigger is better has obtained zealous advocates the world over, including our country's multinational companies," Mendoza said.

"This is most especially true in this interesting time and age of globalization. Because of the need to become bigger and more competitive, the incidence of mergers, consolidations and acquisitions, including the sale or transfer of all or substantial assets, business enterprise has become very rampant," Mendoza said.

The problem is, Mendoza lamented, "some employers device these schemes - a corporate mechanism, not really for the purpose of obtaining competitiveness but with the end in view of violating workers' security of tenure, among other rights of employees."

"This plethora of previously unfamiliar corporate occurrences creates a trail of novel issues, such as the rights of employees and liabilities of the employers. This is when the issues of the security of tenure, diminution of wages and benefits and other employment terms and conditions come to fore," Mendoza said.

Mendoza has been strongly batting for his proposed measure saying it is the State's policy to extend utmost protection to the security of tenure, wages, benefits and other employment terms and conditions of employees in cases of merger or consolidation of the business of their employer with other entities.

The protection shall extend in case an employer acquires, transfers, sells, assigns, conveys or leases all, or substantially all assets, business enterprise or going concern to another employer or business entity.

Under the measure, the transferee employer shall have the obligation to continue the employment of the transferor employer's employees, without loss of seniority rights and other privileges.

In case of differences in the employment levels, wage and benefit scales, and other employment terms or conditions, the superior or most favorable to the employees shall prevail.

The transferor employer shall be liable to money claims pertaining to the period when the transferee employer was still the employer.

The measure also aims to limit the ground for termination of employment to redundancy and shall be liable for separation pay or other benefits as prescribed under the Labor Code.

"Plus it sets a presumption that if the transferee employer or new company becomes a bigger entity than the prior one, there can be no declaration of redundancy as the business can absorb the employee," Mendoza added.

The measure also requires the new company to give an employee declared to be redundant in a certain position first priority for employment in the newly created position, if qualified.

Finally, the measure sets out rules on recognition of existing bargaining agents and agreements, protecting not only the unions, but also the benefits worked hard for by them as embodied in the Collective Bargaining Agreements (CBA). - Jazmin S. Camero, Media Relations Service-PRIB

Give VMMC juridical entity to perpetuate efficient service to veterans

Veterans' welfare is one of the many legislative issues that demonstrated the collective non-partisan action of the House of Representatives on matters crucial to public interest, Rep. Herminia Roman today declared.

Roman, Chairman of the House Committee on Veterans Affairs and Welfare, is citing, among others, the House-approved HB 6754 or "An Act to give juridical personality to the present Veterans Memorial Medical Center (VMMC), appropriating funds therefor, and for other purposes."

"HB 6754, like other measures promoting the welfare of our veterans and their dependents, would ensure continued free medical care for the veterans," she said, noting that the principal author of the original bill (HB 6502) is Pampanga Rep. Gloria Macapagal Arroyo.

Other principal authors of the House-passed substitute bill are: Reps. Ma. Amelita Villarosa, Hermilando Mandanas, Anthony Rolando Golez, Jr., Lani Mercado-Revilla, Leopoldo Bataoil, and Raymond Democrito Mendoza.

While transforming the VMMC into a corporate body with juridical personality, HB 6502 seeks to strengthen the hospital's financial operations, reinforces its existence and perpetuation as a first-rate and prestigious medical institution, the authors said.

While reiterating the VMMC's commitment to serve the Filipino war veterans, the measure provides greater flexibility in its operations with autonomy in the exercise of its jurisdiction.

Among other salient provisions, HB 6754 provides that the VMMC, a body corporate, acting through its Board of Trustees, shall have all powers pertaining to a juridical person, and is therefore authorized, among others, to: 1) Acquire and hold in any manner property of whatever nature or description; 2) Enter into contracts; 3) Solicit and receive donations, endowments and funds in the form of contributions, whether in cash or in kind, from both the public and private sectors;

4) Open such accounts in banks and other financial institutions, and to disburse such funds or invest the same as the Board may direct to accomplish or advance the purposes or interest of the VMMC; 5) Invite foreign health specialists and other similar experts in the various medical fields to train the personnel, trainees or residents of the VMMC;

6) Send VMMC personnel to research institutes, medical institutes or universities for advanced training or observation and to attend international or regional conventions, conferences, congresses, seminars as the Board may deem necessary. 7) enter into such agreements and arrangements with medical or other institutions, domestic or foreign as may be deemed desirable by the Board;

8) Adopt a set of by-laws, rules and regulations not inconsistent with law and the provision hereof to govern the administration and operation of the affairs of the VMMC; 9) Establish branches for the VMMC in other provinces or cities of the Philippines as may be deemed necessary for greater service coverage to veterans and their dependents that are living in almost all parts of the country; and 10) Perform all such other acts and things as are or may be necessary or incidental for the accomplishment of the purposes and objectives of the VMMC.

The VMMC Board of Trustees shall be composed of the following: the Secretary of National Defense as Chairperson; Medical Director of the VMMC as Vice Chairperson; Chairperson of the Senate Committee on Defense and Security; Chairperson of the House Committee on Veterans Affairs and Welfare; Secretary of Health; Administrator of the Philippine Veterans Affairs Office; chairman of the Philippine Veterans Banks; President of the Veterans Federation of the Philippines and three appointive members who are veterans and who have exerted conspicuous efforts towards the promotion of veterans' welfare and well-being.

The appointive members shall be appointed by the President of the Philippines and shall serve for a term of three years. - Dionisio P. Tubianosa, Media Relations Service

Solons want labor subjects be included in college curriculum

Lawmakers are pushing for the inclusion of labor subjects into the college social science curriculum.

"College students should equip themselves with knowledge about labor rights, works welfare and benefits, core labor standards, labor laws and regulations," Rep. Raymond Democrito Mendoza (Party-list, TUCP) said.

"These students will eventually be a part of the labor force and therefore should be coached the most important principles pertaining to the role of labor in the self-realization of a human being," Mendoza said.

House Bill 3205, authored principally by Mendoza, vice chairman of the House Committee on Labor and Employment, mandates the Commission on Higher Education (CHED) to integrate labor subjects into the social science curriculum in the tertiary.

Mendoza said CHED should develop a course on labor education to be integrated in the tertiary education curriculum to inculcate among college students a sense of awareness on the rights, privileges as well as the responsibilities to society of workers.

Mendoza, who also chairs the House Committee on Poverty Alleviation, said there are about 2.6 million college students in the country.

The number of students enrolled in private universities and colleges are more than 1.6 million, while more than 820,000 are from state universities and colleges, he said.

He said local universities and colleges have 96,000 while the rest come from other higher education institutions of government.

Rep. Juan Edgardo Angara (Lone District, Aurora), another author of the bill, said labor issues would give students knowledge of the labor situation in the country and the current employment problem.

"The labor education should also include topics on national and global labor situation, labor market concerns, labor issues, overseas work and related problems," said Angara, chairman of the House Committee on Higher Education. - Jazmin S. Camero, Media Relations Service-PRIB

People's participation in development plans pushed

Lawmakers today stressed that people's participation should be institutionalized in the formulation of local and national government development plans.

The House of Representatives has endorsed for Senate approval HB 3264, which seeks to strengthen the participation of civil society organizations (CSOs) in the formulation of national, regional, and local development plans.

"The proposed statute will ensure the participation of civil society organizations in national building," the authors said as they lauded Rep. Benjamin Asilo, Chairman of the Committee on People's Participation, for defending the measure on the floor until its final passage and endorsement to the Senate.

HB 3264, principally authored by Reps. Joseph Victor Ejercito (Lone District, San Juan City), Winston Castelo (2nd District, Quezon City), Linabelle Ruth Villarica (4th District, Bulacan), and Eduardo Gullas (1st District, Cebu), has been approved on third reading by the House and is now pending final action by the Senate.

"The measure strengthens the role of CSOs in pursuit of their collective interests and aspirations and ensure their effective and reasonable participation at all levels of social, political, and economic decision-making," Ejercito and Castelo said.

The bill mandates all national government agencies involved in planning and the regional and local development councils to take measures to ensure the participation of CSOs in the formulation of growth programs.

Likewise, it provides for an accreditation procedure for CSOs that wish to participate in the policy formulations in all levels of governance.

The measure compels the National Economic Development Authority (NEDA), the barangay secretary of each Barangay Development Council, and the coordinator of each Provincial/City/Municipal Development council to issue a notice of call for written submission of CSOs' proposals and/or comments on proposed development plans.

It also requires all submissions to be (a) properly received by the NEDA or the concerned development council; (b) entered into a database for the purpose; and (c) considered in the formulation of the development plan.

"One of the many vital provisions mandates that all deliberations on development plans be open to the public," the authors stressed.

Also, it requires the NEDA and the development council to present proposed development plans to all concerned stakeholders prior to their submission for approval.

There is also the provision tasking the DILG and the NEDA to monitor and evaluate the accreditation and participation mechanisms of CSOs, and further provides for an incentive system through the DILG's Performance Challenge Fund for LGUs Program.

The penal provisions of the bill imposes a fine of P20,000.00 and a suspension of six (6) months to one (1) year on any public official or employee who shall (a) fail to publish the notice of public call for submissions, (b) refuse to acknowledge receipt of any submission made by CSOs, and (c) fail to invite CSOs to the deliberations on development plans.

Other co-authors include Reps. Cinchona Cruz-Gonzales (1st District, Capiz), Raymond Democrito C. Mendoza (TUCP, Party-list), Edwin L. Olivarez (1st District, Parañaque City), Cresente C. Paez (COOP NATCCO, Party-list), Godofredo V. Arquiza (Senior Citizens, Party-list), Rafael V. Mariano (Anakpawis, Party-list), Catalina Leonen-Pizarro (ABS, Party-list), Reena Concepcion G. Obillo (Una ang Pamilya, Party-list) and Sharon S. Garin (AAMBIS-OWA, Party-list). - Dionisio P. Tubianosa, Media Relations Service

House leader condoles with family of Tejada, hopes student loan bill becomes law

A House leader today condoled with the family of UP Manila student Kristel Pilar Mariz Tejada, as the lawmaker expressed hope that a House proposal to put up a voluntary student loan program by banks and government financial institutions (GFIs) will be pursued and ultimately become a law in the coming 16th Congress to help poor but deserving students finish their studies.

Rep. Roger Mercado, (Lone District, Southern Leyte), said it is truly saddening that a bright student like Tejada had to end her life after she was reportedly forced to take a leave of absence from her studies for failing to pay her tuition.

"We condole with the family of Kristel, and we hope that something will be done to truly help indigent but deserving students pursue their great dream to finish their studies and uplift their families' plight," said Mercado.

Mercado, Chairman of the House Committee on Transportation, said in the 15th Congress, various proposals were filed to help students with financial problems continue their college education through scholarship grants, student loan programs, subsidies and incentives.

He said one of these proposals is House Bill 6219, which he authored along with 23 other solons, seeking to establish a voluntary student loan program by banks and GFIs. The bill was approved on third and final reading by the House of Representatives on October 15, 2012 and was transmitted to the Senate on October 17, 2012.

"We hope the bill will be pursued and ultimately become a law in the 16th Congress because it aims to help underprivileged students by granting them loans which they can repay when they are done studying and are already employed," said Mercado.

Other authors of HB 6219 are Reps. Roman Romulo (Lone District, Pasig City), Juan Edgardo Angara (Lone District, Aurora), Emil Ong (2nd District, Northern Samar), Mariano Piamonte, Jr. (Party-list, A Teacher), Eulogio "Amang" Magsaysay (Party-list, AVE), Pedro Romualdo (Lone District, Camiguin), Eduardo Gullas (1st District, Cebu), Cesar Sarmiento (Lone District, Catanduanes), Florencio Flores, Jr. (2nd District, Bukidnon), Raymond Democrito Mendoza (Party-list, TUCP), Sigfrido Tinga (2nd District, Taguig City), Pryde Henry Teves (3rd District, Negros Oriental), Isidro Ungab (3rd District, Davao City), Rufus Rodriguez (2nd District, Cagayan de Oro City), Elmer Panotes (2nd District, Camarines Norte), Fernando Gonzalez (3rd District, Albay), Evelyn Mellana (2nd District, Agusan del Sur), Arnulfo Go (2nd District, Sultan Kudarat), Agapito Guanlao (Party-list, Butil), Ma. Amelita Calimbas-Villarosa (Lone District, Occidental Mindoro), Emmeline Aglipay (Party-list, Diwa), Anthony del Rosario (1st District, Davao del Norte), and Lani Mercado-Revilla (2nd District, Cavite).

The measure aims to assist eligible students obtain post-secondary education from Higher Education Institutions (HEIs) or technical-vocational institutes and colleges, by encouraging banks and government financial institutions to lend money to students to be repaid in installments after the student graduates or leaves the educational institution.

Mercado said the loan should cover the cost of the entire program offered by the HEI or tech-voc institute or college including, but not limited to, tuition and miscellaneous fees. Adjustments shall be made in case of increase in tuition and miscellaneous fees. It shall likewise include an amount for the cost of attendance, covering necessary expenses of the student for books, food, transportation, board and lodging and a reasonable allowance for projects and other school requirements.

For proper implementation and to better facilitate the collection of the loan, the bill provides that the Social Security System (SSS) and the Government Service Insurance System (GSIS) shall issue, upon application, an SSS or GSIS number to the student-borrower. The number so issued shall serve as the permanent SSS or GSIS number of the student-borrower in case of future employment with the private or government sector. - Rowena B. Bundang, Media Relations Service-PRIB

Solons urge President Aquino to sign into law the proposed Magna Carta of the Poor

Lawmakers do not doubt that President Aquino will sign into law the proposed Magna Carta of the Poor which will recognize the basic rights of the poor and marginalized Filipinos.

"The government must now take the side of the poor because the issue of poverty has become a critical question of survival. The state intervention is the only realistic route to take to uplift the poor while long term measures, strategies and solutions for poverty reduction are being put in place," said Rep. Rachel Marguerite Del Mar (1st District, Cebu City), principal author of the bill.

Under the bill, Del Mar said all the existing funds of the different departments and agencies implementing pro-poor programs, the 20 percent of the share of the national government in the earnings of Philippine Amusement and Gaming Corporation (PAGCOR) and the 50 percent of the share of the national government in all lotteries conducted by the Philippine Charity Sweepstakes Office (PCSO) shall also be allotted for the program.

Likewise, Del Mar said 50% of the share of the government in the proceeds from sale or disposition of sequestered assets, and the 50% of the proceeds from the sale or disposition by public auction of goods or articles forfeited in favor of the government by the Bureau of Customs (BOC) shall also be added to fund the program.

"The bill will institutionalize the basic rights of the poor, the right to food, the right to employment and livelihood, the right to quality education, the right to shelter, and the right to basic health services and medicines," Del Mar said.

Del Mar said all government departments, agencies and instrumentalities must provide full access to government services for the poor.

"We can only have strong democratic institutions when such greater majority of the people are given the opportunities to participate in the benefits, growth and development of a democratic society," Del Mar said.

"Only when the poor are economically empowered will they be able to participate in the democratic process of setting national goals that affect their daily lives," said Rep. Rodante Marcoleta (Party-list, ALAGAD ), co-author of the bill.

Under the bill, the Department of Budget and Management (DBM) shall be principally responsible for the efficient and rational allocation of available funding requirements as may be needed by the different agencies in implementing the proposed act.

Any donation, contribution or grant which may be made to the programs shall be exempted from the donor's tax and may be considered as allowable deduction from the gross income tax of the donor.

The National Anti-Poverty Commission (NAPC), Department of Social Welfare and Development (DSWD), Presidential Commission for the Urban Poor (PCUP), LGUs, the Civil Society Organization (CSOs) and Peoples Organization (POs), shall be formed into a consultative council to ensure the continuity and institutionalization of all the initiatives and programs of the government for the poor.

Co-authors of the bill are Reps. Peter "Sr. Pedro" Unabia (1st District, Misamis Oriental), Ben Evardone (Lone District, Eastern Samar), Marcelino Teodoro (1st District, Marikina City), and Rep. Raymond Democrito Mendoza (Party-list, TUCP), the Chairman of the House Committee on Poverty Alleviation. - Jazmin S. Camero, Media Relations Service-PRIB