15.6-M informal sector workers will suffer from TRAIN law – ALU-TUCP

Over 15.6 million workers in the informal sector will suffer once the Tax Reform for Acceleration and Inclusion (TRAIN) is finally passed into law, according to the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP).

This is higher than the existing estimates of the Philippine Statistics Authority (PSA), which pegs the number of local informal sector operators at 10.5 million.

ALU-TUCP spokesman Alan Tanjusay said workers in the informal sector will be worse off with the implementation of the TRAIN since they will be made to pay more taxes without getting additional income.

Workers in the informal economy include independent, self-employed, small-scale producers, and distributors of goods and services, who are not covered by labor laws and have no social protection.

“Underground economy workers will be impacted by the rise in prices of commodities and in increase in the cost of services caused specifically by the TRAIN’s excise tax on fuel, sweetened beverages, and coal,” Tanjusay said.

Unlike workers in the informal economy, Tanjusay noted, employees with taxable income would benefit from TRAIN through its adjusted income tax exemptions.“TRAIN widened the base of those exempt from income tax – from minimum wage earners to mid-level wage earners – exempting those employees getting P250,000 a year or P21,000 a month. It also raised taxable bonuses from P82,000 to P90,000,” Tanjusay said.

But none of these benefits affects informal economy workers, he said. Instead, they will all suffer from high prices of goods and services.

ALU-TUCP called on President Duterte to postpone the implementation of TRAIN until the government can provide the necessary protection to workers in the informal sector.

“The TRAIN has no policy or program for them. We urge government to improve its social safety-net protection to underground economy workers to save them further from falling deep into extreme poverty. This is the only way we can protect them,” Tanjusay said. - By Samuel Medenilla

ABS-CBN News graphics

Labor sector airs concern over unemployment rate

Government efforts against illegal forms of contractualization may have finally started making their dent in the country’s underemployed persons, according to a labor group.

In a phone interview, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesperson Alan Tanjusay attributed the recent significant decline in underemployment rate to the new wage increases and President Duterte’s position against illegal contractualization.

“The reduction in underemployment is probably because many employers became afraid of President Duterte’s statement (on contractualization) so they regularized their workers,” Tanjusay said.

Ever since his presidential campaign, Duterte has repeatedly stated his position against contractualization.

Last June, the Department of Labor and Employment (DOLE) projected an improvement in the LFS after it implemented its Department Order 174, which further restricted the practice of contractualization.

DO 174 complemented DOLE’s ongoing drive against illegal forms of contractualization, which started in 2016, upon the instruction of Duterte.

Latest data from DOLE showed the campaign already benefitted 125,352 contractual workers.

Based on the October Labor Force Survey (LFS) of the Philippine Statistics Authority (PSA), underemployment rate dropped to 15.9 percent from 18 percent in the same period last year.

The National Economic Development Authority (NEDA) attributed this to the government’s additional job fairs and livelihood assistance program.

PSA defines underemployed persons as those who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours.

Unemployment concerns

Despite the improvement in underemployment rate, Tanjusay expressed concern over the unemployment rate in the October LFS, which slightly grew to 5 percent from 4.7 percent in the same period in 2016.

“The lowering of employment rate and the rise in the unemployment is a signal to President Duterte to seriously create the environment for new and permanent jobs-creating investments to come in and do business here,” Tanjusay said.

Partido Manggagawa (PM) national chair Renato Magtubo also raised the same concern and said the administration should focus in reviving other industries aside from those considered as key employment generators.

“The survey shows that employment generators of the economy— the BPO (business process outsourcing), tourism, construction, and retail and trade industries—cannot cope up with the rising number of persons entering the labor force, as such a rise (manifested) in the unemployment rate,” Magtubo said in a text message.

“Government should put more effort (policies, programs and services) aimed at reviving local manufacturing industries as well as modernizing agriculture to sustain generation of suitable employment,” he added.

Tanjusay warned more people will suffer from poverty if Duterte fails to address the increasing unemployment rate after six months, in time for the entry of thousands of graduating college students in the workforce. (Samuel Medenilla)

Shorter working hours seen to boost Pinoys’ productivity

CNN Phil Photo

IN August the House of Representatives unanimously passed House Bill (HB) 6152. The measure intends to compress the workweek by allowing Filipino employees to work beyond eight hours a day to complete the required 48 working hours in just four to five days.

HB 6152 aims to give workers and employers the option to refer to an alternative arrangement of working hours other than the standard eight working hours a day schedule. Under the bill, the normal workweek is reduced to less than six days, but the total number of working hours will remain at 48 hours.

The arrangement is not mandatory, though it recommends employers to discuss with their workers the alternative schedule. The compressed workweek is currently being allowed by the Department of Labor and Employment in some companies, as the scheme apparently gives workers and employers greater freedom in fixing hours of work that are compatible with the needs of the business and the employees’ desire for a balanced work-life.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) backed the measure. Militant labor group Kilusang Mayo Uno (May First Movement) opposed it. On the other hand, the Center for Trade Union and Human Rights branded HB 6152 as “retrogressive, pro-business and pro-capitalist, while silent about the detrimental effects that extended hours have on workers’ health and well-being.”

Normal

ACCORDING to Rene E. Ofreneo, labor and industrial relations professor at the University of
the Philippines, reducing working hours and compressing the workweek are not new policy reforms sought for by workers and employers. “Shortening the work hours or workweek is a proposal articulated by trade unions in a number of countries as a way of creating more jobs and easing workload,” Ofreneo told the BusinessMirror.

“Compressing the workweek from five to six days to four to five days by lengthening working hours per day is one solution for the horrendous traffic, and so is the old flexible work scheduling,” added Ofreneo, who also writes a column for the BusinessMirror. “Personally, I am not against both, so long as there is serious consultation with the workers and there is unanimous agreement among the parties.”

Ordeal

ON the other hand, ALU-TUCP Spokesman Alan A. Tanjusay said, although their group supports the passage of HB 6152, they are still open to discussing other options as to fixing the working hours, including reducing it.

“I am looking at the [proposal] as another option for workers to cope and become productive for themselves and for the company in a changing work environment and evolving business landscape imposed by the Internet age and climate-change phenomena,” Tanjusay told the BusinessMirror.

He said it is also good to look into trimming the total number of working hours, though he admitted it will not be easy to push for such a radical labor reform.

“Working eight hours in Philippines is entrenched in the psyche of Filipinos,” he said. “Eight hours [of] work in previous decades seemed a normal way of life for Filipinos.”

However, Tanjusay explained, with the rising cost of living, lowering value of wages and worsening traffic congestion into the equation and other factors, “eight hours work become too long of an ordeal.”

Study

IN spite of all these, Tanjusay said Filipino workers continue to strive good for the economy, and this should be rewarded by giving to them what is due to them—a balanced work-life schedule.

“It’s a wonder to think though, that despite these burdens of the Filipino workforce, we were able to produce a very productive and very regionally competitive 6.9-percent average GDP in previous years, and we seem to be capable to do and produce more,” the labor leader said.

He added that, as much as the ALU-TUCP wants to push for reducing working hours, not much study has been produced about the policy reform. Tanjusay said it is important to conduct further assessment on the benefits and disadvantages of shortened working hours for it to gain ground and support in the circles of trade unions.

“This is where lies the main challenge [that] the proposed lesser working time poses,” Tanjusay said. “There has to be a thorough time and motion study to convince [the] government and employers to embrace lesser working hours.”

So far, the ALU-TUCP has not received any complaints on working hours, according to Tanjusay. But the group vowed it will look into such cases should a member-trade union raise the issue.

“It is high time to do a time-and-motion study on the current eight-hour work period given the new conditions not present when the [International Labor Organization] stipulated it to be decades ago,” Tanjusay said. “By then, we can make a convincing assumption that would pave the way to maintaining or changing the current eight working hours [a day requirement].” - By Elijah Felice Rosales

Metro Manila housemaids to get P1,000 wage hike this December

Domestic workers in Metro Manila would receive an additional P1,000 in their salary this December as the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) approved wage increase last November 30.

GMA 7 news program "24 Oras Weekend" reported on Saturday that the order was confirmed by Department of Labor and Employment (DOLE) Secretary Silvestre Bello III.

With the increase, employers will be required to pay domestic workers a wage of P3,500, instead of P2,500.

The adjustment covers "general househelp; yaya; cook; gardener; laundry person or any person who regularly perform domestic work in one household on an occupational basis."

The wage board clarified that "service providers; family drivers; children under foster family arrangement and any other person who performs work occasionally or sporadically and not on occupational basis," are not covered by the order.

The board added that any violation of the order shall be punishable with a fine of not less than P10,000 but not more than P40,000 "without prejudice to the filing of the appropriate civil and/or criminal action by the aggrieved party."

The increase will take effect 15 days after the order is published in a newspaper of general circulation.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) called the increase an "early Christmas gift for our kasambahays."

"We are happy that the wage board has granted the increase. With the falling value of wages , household helpers also needed the raise to cope with rising cost of living," ALU-TUCP spokesman Alan Tanjusay said.

A domestic helper, a mother who also wanted to finish her own schooling, was brought to tears when she learned of the wage increase.

"Parang naiiyak ako. Hindi, natutuwa lang po kung sakaling matuloy po 'yan," said Marissa Merino.

"So siyempre, sila, yung sacrifice na mag-travel ka pa to manila just to earn a living for your family, they deserve talaga an increase." Marissa's employer chimed. — Margaret Claire Layug/DVM, GMA News

Land review alarms 5M workers

BWorldOnline.com file photo

ORGANIZED labor has urged Congress to be judicious in its investigation and review of Agribusiness Venture Arrangements (AVAs), including Joint Venture Agreements (JVAs), to protect the livelihood of almost 5 million plantation workers.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) made the appeal over the filing of House Bill (HB) 5085 and House Resolution (HR) 919, which both intend to investigate AVAs and JVAs in response to concerns of agrarian reform beneficiaries (ARBs).

According to the group, the entire 4.8 million workers in banana, pineapple, cacao and palm oil, including those jobs in the agribusiness value chain in Mindanao, are jittery over their fate in the light of ongoing congressional investigation of the AVAs and JVAs.

“We respect the congressional inquiry into the AVAs but we cannot prevent Mindanaoan [the people of Mindanao in southern Philippines]workers and their families whose lives have been anchored on and around the agribusiness in Mindanao for decades to feel anxious and uncertain over the fate of their livelihood in view of the investigation,” ALU-TUCP president Michael Mendoza said.

“We urge our lawmakers to assure Mindanaoans and guarantee that the outcome of the query into the arrangements shall not alter the existing playing field. It should not result in job losses and displacements. The investigation should not result in uncertainty among stakeholders. It should rather send a message that the government is a reliable social and economic partner,” he added.

Mendoza said the ALU-TUCP supports measures that will strengthen generation of quality jobs for all workers in the agri-food value chain and enhance agri-entrepreneurship development and support mechanism for ARBs.

“It is our view that any proposed laws on the matter should focus on developing a genuine partnership between farmer beneficiaries and the agribusiness so as to enhance the dignity of the farmers and farm workers, and promote their agricultural security of tenure. It must retain existing investors and attract new investors as well to broaden the development in Mindanao,” he added.

The banana industry, the ALU-TUCP pointed out, is a good example in looking at the issue of the AVAs, saying the industry–with little or no government assistance–has created 503,000 direct and indirect jobs.

In 2014, according to the group, the industry contributed P6.5 billion to the national, municipal, city and barangay (village) coffers in the form of business, real property, income, withholding and miscellaneous taxes and many other fees collected for the operation of the business.

It urged Congress to be cautious in addressing the current issue and perform its role as a regulator to protect the most vulnerable sectors of society.

The government, the ALU-TUCP said, must also be equally effective in performing its function as provider of stable business and investment environment and as enabler for social and economic development that will benefit Filipinos, most especially those in rural areas.

The AVAs, based on Department of Agrarian Reform (DAR) data as of March 2014, reached a total of 161 nationwide.

The DAR said the most common AVA was contract growing/growership, which accounted for 72 or 45 percent of the total AVAs. - BY WILLIAM DEPASUPIL, TMT

Return workers’ P5-B tax refund, BIR urged

THE Bureau of Internal Revenue (BIR) is yet to refund an estimated P5 billion that it unlawfully deducted from minimum-wage earners despite a ruling issued by the Supreme Court (SC) almost a year ago.

Organized labor on Friday took the cudgels for the more than 30 million ordinary workers nationwide, insisting that a cash refund is long overdue, including the legal interest the collected money earned from 2008 to the present.

“We cannot understand why the BIR and the DoF [Department of Finance] are quick to squeeze money from the workers but it takes forever for them to return those. Mahiya naman kayo [Have shame]! Those are workers’ blood money. Pinaghirapan yan ng mga manggagawa, ibalik na ninyo [They worked hard for it, give it back to them]!” Alan Tanjusay, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesman, said.

In its 56-page decision issued on January 24, 2017, the High Court nullified several provisions of BIR Internal Revenue Regulation 10-2008 that disqualify minimum-wage earners (MWEs) from tax exemptions on their wage, bonus and other compensation benefits such as overtime pay, hazard pay, holiday pay and night-shift differential pay, including fringe benefits in excess of P30,000, including those who received their 13th month pay bonus.

But despite the ruling, the BIR continued to collect taxes on the basic wage, bonuses and other benefits from millions of minimum-wage workers nationwide from June to December 2008 even as the law exempted them from such taxes starting July 6, 2008.

The SC also directed the BIR to grant a refund or allow a refund through withheld tax adjustments or a claim for tax credits by those subjected by IRR 10-2008.

“Some minimum-wage workers who were subjected to tax may have remained a minimum-wage earner up to this day but they cannot claim tax credit because they are exempted from income tax. Some may have been promoted and some may have been unemployed. Some have become OFWs [overseas Filipino workers]. Some are already deceased,” Tanjusay said, adding, “In fairness to the workers subjected by the regulation, the best option here is a cash refund.”

The Supreme Court ruling stemmed from petitions filed by lawmakers, individuals and labor groups. - BY WILLIAM DEPASUPIL, TMT

Trade Union Statement on the 8th ASEAN Regional Tripartite Social Dialogue Conference in Manila, 18-19 October 2017

File photo / Rappler.com

Trade unions across the ASEAN expressed great disappointment over ASEAN governments who refused to commit to advance workers’ rights in the sub-region.

Ironically, governments refused to heed the workers’ calls during the 8th ASEAN Tripartite Social Dialogue Conference—a forum dedicated to deepen understanding and relations between and among social partners—government, employers and workers.

At the two-day Conference, panel sessions delved on effective social dialogue mechanisms, many examples of which featured good practices of the Philippines.

On the final day of the conference, social dialogue in practice was put to a test. The final plenary session was held to come up with the conference conclusions and recommendations.

In separate interventions, workers' delegates asked that the conference document reflect the calls to ratify ILO Convention 144 on tripartism; Convention 151 on labor relations in the public sector; and core labor standards covering freedom of association and free collective bargaining; an end to forced labor; elimination of child labor; and an end to discrimination at work.

Ratifying ILO Convention 144 is important as it provides the framework for tripartism and social dialogue in ASEAN member countries. The conference did not explicitly define tripartism and provide a framework for social dialogue. ILO Convention 151 was the subject of a panel discussion where the resource persons openly called for its ratification. Meanwhile, core labor standards was a recurring theme, especially with the acknowledged decline in trade union density across ASEAN.

In the course of the dialogue, workers revised their position several times with the hope of convincing governments and employers to soften their position. Workers offered to change the language to "work towards ratification of the ILO Conventions" instead of the direct call for ratification of ASEAN member states to indicate commitment. They still objected without explaining their position. Workers then moved to just "recognize that trade unions are calling for the ratification" of the said standards. But governments led by Indonesia, Malaysia and Myanmar and employers maintained their stubborn stance.

After the discussion on the conference statement, trade unions affiliated to Building and Wood Workers International (BWI) and Public Services International (PSI) along with NAGKAISA Labor Coalition expressed their strong objection to the final Conference Joint Statement for not living up to the spirit of tripartism and social dialogue. #

20 October 2017


Signed by ASEAN affiliates of:
· Building and Wood Workers International (BWI)
· Public Services International (PSI);

and, members of:
· NAGKAISA Labor Coalition, Philippines

Metro Manila minimum wage earners to get P21 more starting October 5

Non-agricultural workers will now receive P512 per day while agriculture and service workers will get P475 per day

MINIMUM WAGE. The additional P21 minimum wage will be given starting October 5, 2017. File photo by AFP

MANILA, Philippines – Starting Thursday, October 5, minimum wage earners in Metro Manila will receive an additional P21 in their daily basic wage.

The Regional Tripartite Wages and Productivity Board-National Capital Region granted the increase on September 14 through Wage Order NCR-21. The order was published in the Philippine Star on September 20.

Non-agricultural workers will now have a daily minimum wage of P512 from their previous pay of P491. Agriculture, retail, and service establishments with at most 15 workers and manufacturing businesses with less than 10 workers should pay their employees a minimum rate of P475.

The Wage Board clarified that domestic workers, persons "in the personal service of another," and employees of registered Barangay Micro Business Enterprises (BMBEs) are not covered by the order.

Household workers in Metro Manila and first class municipalities should receive a salary of at least P2,000 under Republic Act 10361 or the Batas Kasambahay Act.

Meanwhile, those paid on a per task basis are also entitled to the new rate for every 8-hour work per day.

The approved wage rate is way below the amounts proposed by the labor unions that petitioned for a hike last June.

The Associated Labor Unions (ALU) sought a P184 increase, while the Trade Union Congress of the Philippines (TUCP) asked for a P259 increase and the Association of Minimum Wage Earners and Advocates (AMWEA) wanted the minimum wage to be raised to P1,200 in 4 tranches.

Labor unions argued that the purchasing power of the P491 daily wage has slid to P354.51 based on government figures. (READ: Labor union to wage board, employers: Try living on P357 a day)

They are still calling on President Rodrigo Duterte to grant the P500 subsidy for workers similar to the conditional cash grant under the Pantawid Pamilyang Pilipino Program.

Meanwhile, leftist union Kilusang Mayo Uno renewed its call to establish a national minimum wage of P750 instead of individual rates per region. – Rappler.com Patty Pasion @pattypasion

Metro Manila workers to get P21 daily wage hike

For some workers in Metro Manila, a wage hike does not necessarily mean that they will be able to make ends meet.

Metro Manila (CNN Philippines, September 15) — Minimum wage earners in Metro Manila will receive an additional P21 a day after the regional wage board approved the increase Thursday.

This brings the minimum wage for non-agriculture workers in Metro Manila to P512 from P491 starting the end of September.

Those in the agriculture sector, small retail, service and manufacturing establishments will get P475 from the previous P454.

According to the order, the wage board "has determined the need to increase the prevailing minimum wage rates without impairing the viability of business and industry."

The Associated Labor Unions - Trade Union Congress of the Philippines (ALU-TUCP) said the hike will affect about 6 million minimum wage earners in Metro Manila.

The 21-peso wage hike is still below the petitioned increase by three labor groups.

In June, the Association of Minimum Wage Earners and Advocates - Philippine Trade and General Workers Organization filed a petition for a P175 hike, while the ALU-TUCP sought a P184 increase. The Trade Union Congress of the Philippines asked for P259.

While the wage hike covers all minimum wage earners in the private sector in Metro Manila, it excludes domestic workers, persons in the personal service of another, and workers of duly registered Barangay Micro Business Enterprises.

Wage hike not enough

The ALU-TUCP said the P21 increase is inadequate to meet the needs of minimum wage workers.

"The P21 increase in daily wage remains insufficient for families to cope with rising prices of goods and increasing costs of goods. P21 is only 4.27% of the current P491. So it obviously did not lift workers out of poverty," said ALU-TUCP spokesperson Alan Tanjusay.

He said the group will request President Rodrigo Duterte to provide a P500 monthly cash subsidy to minimum wage workers to purchase rice, groceries, and medicines.

Labor union Kilusang Mayo Uno agrees.

"Instead of heeding our demands, the Duterte government is insulting workers with a measly 21 peso increase that would even be futile amidst the unabated increases in the prices of basic goods and services," it said in a statement. - By Ver Marcelo, CNN Philippines

Daily wage in MM now at P512

AFP / File photo

The Regional Tripartite Wages and Productivity Board announced a P21 daily wage increase on top of the existing P491 daily minimum wage for more than six-million minimum-waged workers in 17 cities and municipalities in Metro Manila.

The minimum wage in Metro Manila will become P512 effective next month (October).

Wage hike petitioner Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) filed a P184 wage increase petition last June 6 on top of the existing P491 to enable workers and their families cope with rising prices of goods and services.

“The daily wage rate should be P675 for workers in the National Capital region,” ALU-TUCP spokesperson Alan Tanjusay said.

The Bangko Sentral ng Pilipinas and the National Wage and Productivity Commission earlier reported that the purchasing power of P491 has eroded to P354.51 by July 2017, an erosion of 27.79 percent.

Tanjusay said the P21 increase remains inadequate to meet the needs of minimum-waged workers to escape poverty.

“The P21 increase in daily wage remains insufficient for families to cope with rising prices of goods and increasing costs of goods. P21 is only 4.27 percent of the current P491. So it obviously did not lift workers out of poverty. Workers who helped built a high economic growth of 6.9 percent average Gross Domestic Product do not deserve this very small amount,” Tanjusay said.

“We have no other choice but to come and ask President Duterte to grant our long-standing request to him to provide a P500 monthly CCT-like cash voucher subsidy to minimum-waged workers who helped build our high economic growth,” Tanjusay said.

The proposal was submitted to Duterte on April 2017. Funded by the Office of the President, the cash voucher will be used by minimum-waged earners to purchase rice, groceries, and medicines. - by Vito Barcelo

Workers call on governments to Defend Public Services and Reject RCEP

We are trade union and civil society representatives from seven Asian countries who came together to discuss the impacts on labour rights and essential public services of the proposed Regional Comprehensive Economic Partnership (RCEP) between 16 Asian nations. After two days of deliberations and reviewing the exciting experiences and the analysis available, we concluded that several proposals on the table of this far reaching economic deal have the potential to negatively impact decent work, labour rights, access to essential services such as water, electricity and healthcare, and add new challenges to the provision of quality public services in the region.

As the RCEP Ministerial will be held today 10 September in Manila, we publish the following statement of our position regarding these negotiations.

We are deeply concerned with the secrecy and lack of democratic process around these talks. Despite four years of negotiations texts have not been shared with elected representatives, and not been tabled for discussion in our respective tripartite mechanisms, let alone shared in the public domain for wide and informed consultation. While we acknowledge the ‘official stakeholder’ events that have taken place in the last three rounds of negotiations (Jakarta, Manila and Hyderabad) and in Manila a few days ago, these are far too limited as long as the text under discussion is kept secret.

We reject the controversial Investor State Dispute Settlement (ISDS) mechanism proposed as part of this deal. ISDS is a flawed framework in which only one party – the investor – has the right to raise claims against another – the State. There is no justification for such a biased adjudication system in which States can never win, as even when they do not lose they bear the cost of litigation. The Philippines had to pay US$ 58 million in legal expenses despite the German transport company Fraport losing the case against the former. These arbitration tribunals only recognises rights, but no obligations for investors, and privilege the terms of trade and economic deals above our countries’ Constitution.

Further, the threat of challenge under this powerful international arbitration system impinges on the sovereignty of nations to formulate national laws and policies. We are particularly worried of the possibility that foreign investors challenge the outcomes of collective bargaining processes within countries, as we have seen in Egypt. The French company Veolia challenged the increase in national minimum wage brought about in Egypt by trade union demands in the wake of the Arab spring. Veolia demanded that the minimum wage increase be revised or that the company be compensated by the State for so called ‘loss in expected profits’. That a company feels emboldened enough to make such a claim speaks of the abusive use of this system that is currently taking place behind closed doors.

The current trade regime has already led to an intensification of precarious work and contractualisation of employment in the region. Permanent contracts, a key component of decent work as defined by the ILO is seen by business as a rigidity in employment regulations that needs to be done away with. RCEP’s provision of drastic cuts in import duties will increase the competition among manufacturing companies within the region. Experience tells us that most often the response from management is to resort to exploiting loopholes in labour laws or the lack of implementation of labour laws, to cut costs. This not only impacts the livelihoods of workers but also unionisation as precarious workers are less likely to join trade unions. This is a concern for our societies as a whole as it has been shown that lower unionisation leads to more income inequality within a society.

The provision of quality public services is also at risk. On the one hand government revenues are affected, and on the other, the cost of public services provision, especially for healthcare, stands to increase substantially. According to UNCTAD, import duties are key sources of government revenues for developing countries. In the region, this can be as high as around 17% of central government revenues in India. Drastic cuts in import duties will have a negative impact on the ability of the government to adequately finance services such as healthcare, water and sanitation, and education. In addition, the compensation claims from international arbitration are exorbitant and this comes from tax payer’s money. Indonesia had to pay US$ 337 million to Cemex in compensation. According to a leaked text, RCEP also demands decreased licensing fees, which are essential revenues for municipalities.

The cost of the provisions of essential services has to be balanced between infrastructure, human resources and cost of inputs. If there is a substantial increase in any of the three, the availability of resources for the other will be affected. For instance, medicines are essential inputs in the provision of healthcare that account for a substantial part of government’s health budgets. Provisions proposed under the Intellectual property rights text of RCEP would strengthen the monopoly of patent holders. Studies have shown that such changes would lead to higher costs of medicines (Kajal to add data).

Further, in the name of ensuring market access and equal treatment to foreign players, RCEP promotes the commodification of public goods, such as health, water and energy. These are services that are best provided by the public sector, require social accountability and have to be provided in the public’s interest. The private sector and the market are neither equipped, nor adequate to their provision and can at best play a subservient role under tight government regulation and guidance. Not only does RCEP promote the role of private players in the provision of these essential services, provisions in the services and investment chapters of RCEP stand to affect the ability of the government to regulate private providers. This is nothing but a recipe for disaster in which the worse affected will be the poor, women and marginalised communities across the region.

Finally, as shown in a recent report called “Reclaiming Public Services –how cities and citizens are turning back privatisation”, the failure of privatisation experiments, especially but not limited to the energy and the water sector, have led to a wave of cases where cities and municipalities have brought back privatised entities into public hands. The report identifies more than 800 cases in 41 countries over the past 17 years. Provisions proposed under RCEP, such as Standstill, Ratchet and MFN-Forward, would entrench privatisation and pose a threat to the option to remunicipalise services.

Based on the above concerns, we demand that the RCEP negotiations be halted until the text is made public and discussed in parliament and in tripartite bodies in our respective countries. We reaffirm and support the call of ASEAN Parliamentarians for a thorough cost-benefit assessment of RCEP as well as a human rights impact assessment.

We demand that submissions from the trade union movement and other people’s organisations, based on a careful examination of the proposition on the table be taken as part of the negotiation process.

ASEAN governments have asserted the centrality of ASEAN in this process. We demand then that the guiding principles of ASEAN be at the core of the considerations of economic deals in the region. This implies that differences in development need to be given due recognition and form the base of expectations from different countries within and outside ASEAN. The notion of ASEAN centrality should also mean giving primacy to peoples rights and needs in these negotiations. Human rights such as the right to water, right to health, right to life and right to development come before economic expectations of investors. To ensure this, the trade union movement and other people’s organisations must have meaningful participation in the negotiations.

Until these demands are fulfilled, we reject the RCEP negotiation process and the outcome of it as a flawed and undemocratic process that does not stand to benefit workers, communities, and social development in our region.



Statement issued by:

NAGKAISA, PSI, Focus on the Global South and Transnational Institute

Four-day workweek may affect workers’ health — ALU-TUCP

Inquirer.net image

BELIEVING that it would do more harm to the workers than it would do good, the Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP) is opposing the proposed legislation to impose a four-day compressed workweek for employees.

The labor group instead suggested that it should be done through a department-level order or through the Department of Labor and Employment order where the work schedule scheme would only be voluntary for employees and implemented after consultations between management and the employees.

“Let’s make it simple and adaptable to circumstances unlike a legislation which is politically messy and hard to amend,” read the labor group’s position paper.

ALU-TUCP was referring to House Bill 6152, which was passed on third and final reading at the House. If enacted into law, the bill will institutionalize the implementation of the four-day workweek scheme “to promote efficiency and productivity in the workplace.”

Rep. Ray Villafuerte of Camarines Sur, one of the sponsors of the bill, cited long hours of transportation commute due to traffic may inflict health risks to workers and may cause them to be less productive.

But ALU-TUCP said that reducing the number of working days would not solve the traffic issue instead the proposed scheme might jeopardize the health and efficiency of the workers.

At present, employees are mandated to render 40 hours of service for public offices and up to 48 productive hours for private companies. - By Rosalie O. Abatayo @cebudailynews

No decision on NCR wage hike yet as board still assessing indicators

Metro Manila workers will have to wait longer before they could get their much-needed wage hike, as the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) deferred deliberations on the wage petitions filed by different labor groups in June.

The region’s wage board earlier promised to release its decision this month, but Kim S. Lagcao, secretary of the RTWPB-NCR, said the members of the board need more time to assess crucial socioeconomic indicators.

“We are still waiting for instructions from the board [on when to deliberate the wage-hike petitions]. Hopefully, we can conduct it the soonest,” Lagcao told the BusinessMirror.

Still, Lagcao added: “It is not safe to say [there was no progress because] the proposals, together with the socioeconomic indicators, will be taken into consideration during the deliberations.”

Lagcao noted that the board is monitoring the movement of determinants of wage increase, such as the prices of basic commodities and inflation, to ensure it hands down a verdict that is just to both workers and employers.

“These socioeconomic indicators are so vital during the deliberations because of their movement, such as inflation, [which] has increased from 3.1 percent to 3.8 percent, according to the Neda [National Economic and Development Authority]. Such is important to consider in determining the possible adjustment [of the wage hike],” Lagcao said.

The RTWPB-NCR is assessing the demands of the Association of Minimum Wage Earners and Advocates Philippine Trade and General Workers Organization (AMWEA-PTGWO); the Associated Labor Unions (ALU); and the Trade Union Congress of the Philippines (TUCP).

The TUCP is pushing for an across-the-board wage hike of P259, higher than the P184 demanded by the ALU and the P175 sought by the AMWEA-PTGWO.

The deliberation is to be conducted by a seven-member committee comprised of two labor representatives, two employer representatives and three government officials. Angelita D. Senorin of the TUCP and lawyer Herman N. Pascua Jr. of the ALU will represent the workers, while lawyers Alberto R. Quimpo and Vicente Leogardo Jr. of the Employers Confederation of the Philippines will represent the employers.

The government will be represented by Reynaldo R. Cancio of the Neda, Anacleto C. Blanco Jr. of the Department of Trade and Industry and Henry John S. Jalbuena of the Department of Labor and Employment.

In a previous interview with the BusinessMirror, Labor Undersecretary Joel B. Maglunsod said the RTWPB-NCR should understand the gravity of its decision on the wage-hike proposals.

“In my opinion, the wage board must approve a wage hike favorable to the demands of the labor groups,” Maglunsod said.

“Our workers contribute to the expansion of Philippine economy, so let us not treat them like street scavengers begging for alms.” - By Elijah Felice Rosales

Gov’t workers hail Senate passage of ILO convention

ILO Convention 151 protects government workers' rights to organize and negotiate employment conditions

FRONTLINER. DSWD staff accepting requests for assistance at the agency's crisis intervention unit. Photo by Patty Pasion/Rappler

MANILA, Philippines – Government employees applauded the Senate’s ratification of the 3-decade old convention that aims to protect their rights, seeing this as the key to further their campaign against government rightsizing and regularization of contractual workers.

Confederation for Unity Recognition and Advancement of Government Employees (Courage) vice president Santiago Dasmariñas said that the Interntional Labor Organization (ILO) Convention 151 would oblige the government to allow workers to unionize and negotiate employment terms.

“Aside from the national laws, we now have an international law that is specific for the public sector. Through this, the ILO can now call on the government just like what it does for the private sector [workers],” Santiago said in a phone interview with Rappler on Monday, August 14.

Courage is the umbrella organization of the labor unions in different government agencies. It has been active in pushing for the ratification of the ILO Convention 151 since 1978.

The treaty is the counterpart of ILO Conventions 87 and 98, which assures private sector workers with the right to organize and the right to collective bargaining.

Santiago explained that while collective bargaining occurs between unions and their public sector employers, it is only limited to benefits and other rights. Salary rate is not included because it is dependent on Congress and the Salary Standardization Law.

Slow compliance

Despite this, workers still call on the government's compliance to the treaty. Manny Baclagon, president of the social welfare department’s Social Welfare Employees Association of the Philippines (SWEAP) said that it takes time for government to comply with treaties like this.

“Nasa Saligang Batas na natin iyang right to unionize. Nasa Article 13. Dapat lang hinihiling lang namin kahit di immediate compliance kundi progressive realization nung mga rights na sinasabi nila,” he said.

(The right to unionize is included in our Constitution. It’s in Article 13. What we are asking is the progressive realization of the rights mentioned if they cannot immediately comply with it.)

Among the rights they clamor for is the right to conduct strikes and the right to security of tenure. The treaty urges the government to grant the workers their general civil and political rights aside from the right to organize and collective bargaining.

Regularization of workers has been a big concern for contractual members of the bureaucracy fearing they will be the first casualties of the efforts to streamline the government through the rightsizing bill. (READ: Contractual frontliners vulnerable to effects of gov't rightsizing)

Out of the 2.4 million workers in government, a quarter or 595,162 are under job order and contract of services arrangements.

“This just adds basis for workers to defend their rights. Like the proposal to streamline the bureaucracy, the convention may be a way of counteracting that because it recognizes civil and political rights [of the workers],” explained Gene Niperos of the Alliance of Health Workers.

“It can be interpreted as liberally as possible [as long as it’s] in the context of social justice,” he added.

End endo

Trade Union Congress of the Philippines (TUCP) also hailed the success of their counterparts in the public sector.

“We are the first Asian nation to ratify this ILO convention and by this ratification we bind ourselves to the right of government workers to unionize. Public sector unionism can only mean a stronger, more assertive civil service,” said TUCP Vice President Luis Corral in a message to Rappler.

It was President Rodrigo Duterte who endorsed the ratification of the convention to the Senate in May this year. TUCP is now looking forward that the President will take action on the measures seeking to end contractualization in the country.

“We await for the Presidential certification of HB 444 and major amendments to cure Department Order 174. This is crucial to ensuring endo will finally end as promised by Duterte,” he said. – Rappler.com / Patty Pasion @pattypasion

DoLE’s move to review high-heel policy lauded

A labor group on Sunday lauded the pronouncement of the Department of Labor and Employment (DoLE) that it is now considering regulating the mandatory wearing of high-heeled footwear in workplaces.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said the proposal is a significant step for the government towards improving the working condition of workers, who are required to wear high heels by their management.

“The ALU-TUCP commends the swift action made by DoLE on a request made by salesladies to do away with the wearing of high heel shoe because it causes pain and exposes them to the risk of sliding, falling, and tripping off,” ALU-TUCP spokesperson Alan Tanjusay said in a statement.

ALU-TUCP is against the mandatory wearing of high heels due to its supposed negative effects to the posture of its users.

“Most of these salesladies have been enduring the pain and the risks caused by wearing high heels shoes for the entire period of the shift for many years because they will be fired whenever they complain against it,” Tanjusay said.

Labor and Employment Secretary Silvestre Bello III said he has already created a technical working group to conduct a study and stake holder consultation to craft a new policy that will regulate the use of high heels.

Tanjusay said they will continue to monitor the developments on Bello’s proposal.

“ALU-TUCP envision a policy that cover not only salesladies but promodizers in supermarkets, waitresses, hotel and restaurant receptionists, flight attendants and lady security guard,” Tanjusay said. - By: Samuel Medenilla / Tempo

Labor task force to meet ​on ​rest periods to mall employees

Labor Secretary Silvestre Bello III (davaotoday.com)

DAVAO CITY, Philippines — Labor Secretary Silvestre Bello III said the labor department is coming up with an administrative order to direct all business establishment to grant rest periods for salesgirls including male employees.

In an interview at the sidelines of the opening of the One-Stop Service Center for Overseas Filipino Workers in Gaisano Mall here Friday, Bello said the technical working group will meet on Tuesday, Aug. 15 to come up with a recommendation which will be the basis of the order.

“During their period of working they should be allowed rest time. Pumunta ka dun sa SM, walang saleslady na nakaupo, puro nakatindig yan. So hindi lang alisin yung requirement of high heels, we should also allow our salesgirls and security guards and other male workers some rest time,” Bello said.

He said in a span of an hour salesgirls or personnel who are commonly required to stand for a long period of time during their duty should be given “five to 10 minutes rest time” every hour.

“Depende kung gusto nila palabasin muna yung workers kung san sila pwede magrest ang importante allow them some period of resting (It depends on employers whether they want to allow the workers to go out to where they could rest, the important thing is they will be given some period of resting),” Bello said.

Meanwhile, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) lauded DOLE for acting swiftly on the concerns of the salesladies.

Bello on Thursday ordered the DOLE’s Occupational Safety and Health Center (OSHC), the Bureau of Working Conditions (BWC) and the Bureau of Special Working Concerns (BSWC) to come up immediately with a policy in view of an occupational safety and health hazards faced by salesladies in wearing high-heel shoes and giving rest periods to both male and female security guards and salespersons.

ALU-TUCP spokesperson Alan Tanjusay said the most of the workers were employed as short-term contractual employees.

“Most of these salesladies have been enduring the pain and the risks caused by wearing high heels shoes for the entire period of the shift for many years because they will be fired whenever they complain against it. Apart from having no security of tenure, they have no union to help them improve their plight,” Tanjusay said.

The ALU-TUCP last week urged the DOLE to draft a policy forbidding employers nationwide from requiring women employees to wear high heel shoes at work because it poses danger to their safety and health in the absence of a government regulation.

Tanjusay said the ALU-TUCP envision a policy that cover not only salesladies but promodizers in supermarkets, waitresses, hotel and restaurant receptionists, flight attendants and lady security guards. - ZEA IO MING C. CAPISTRANO (davaotoday.com)

Workers on heels

LAST week, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) did something right for long-term sufferers of pain caused by high heels. It asked the labor department to prohibit employers from requiring employees to wear heels, especially if they spend most of their hours on their feet.

According to news reports by GMA News and Philippine Daily Inquirer, ALU-TUCP was concerned that requiring workers to spend many hours standing in high-heeled shoes would cause them to suffer foot and leg pain, as well as increase the risk of workplace accidents. Now, a lot of us love our high heels. As part of the process of embracing middle age, I now spend most of my workdays in flats or other sensible shoes no more than two inches high.

But I still keep two pairs of three-inch heels for those days when pretending to be 5’8” makes an anxiety-inducing presentation go easier. Up until last year, I took 250 steps every hour, walking down stairs and office corridors, while wearing 3.5-inch wedges. (An admittedly impractical pair that I still have and love.) That continued until one day, SunStar Network Exchange Editor-in-Chief Nini Cabaero pointed out I should probably use safer footwear while chasing my daily step-count goals. (I elected not to say anything recently about her covetable boots.)

ALU-TUCP’s appeal is meant to benefit a different group of workers who, as part of their daily grind, spend long hours on their feet, like salesclerks, promo attendants, waitresses, and hotel receptionists. Apart from the absence of choice, another issue is business expense. When they require high heels as part of their workers’ uniform, how many employers have the good conscience to pay for at least part of the cost of that footwear?

Do they make sure that when employees pay for part of the cost of mandatory high heels through salary deductions, their daily pay does not dip below minimum wage? There are other good reasons to require sensible shoes. Restaurant workers, for instance, may be asked to wear slip-resistant shoes, lest they tumble and accidentally fling a cleaver at one of the chef’s vital organs. Concern for workers’ comfort is another.

A study published in March 2012 by the Journal of Applied Physiology said that long-term use of high heels “may compromise muscle efficiency in walking and is consistent with reports that high heel wearers often experience discomfort and muscle fatigue.” Before they reached that conclusion, researchers Neil Cronin, Rod Barrett and Christopher Carty observed 19 participants, of whom nine had spent at least 40 hours a week, for at least two years, shod in two-inch heels. My argument for prohibiting a high-heel requirement at work has to do with honesty.

Requiring grocery checkout clerks and sales staff to stand in heels for much of their day raises an obvious irony. It is the false elevation of a class of workers whose pay and benefits linger on the lowest rungs of the country’s corporate ladders. Now if a worker chooses to spend the day in heels, then more power to her. (Or him, for that matter.) But there’s a word for employers who require lowly-paid staff to spend their days in impractical and painful shoes: these people are the real heels. By ISOLDE D. AMANTE (On Twitter: @isoldeamante) - SunStar

Read more: http://www.sunstar.com.ph/cebu/opinion/2017/08/13/amante-heels-558140
Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook

Union urges Duterte to set wage hike terms

File Photo

THE Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) is urging President Rodrigo R. Duterte to declare a nationwide across-the-board wage hike.
In a statement released on Sunday, ALU-TUCP spokesperson Alan A. Tanjusay said that the President “can text or call the wage board and tell them the amount of wage increase he desires and it will be done.”

According to Mr. Tanjusay, the President can issue “an executive order mandating a wage increase amount needed by workers and their families to cope and service with the increasing prices of goods and service.”

Sought for comment, Regional Tripartite Wage Productivity Board (RTWPB) Secretary Kim S. Lagcao said that there is no schedule for deliberations yet. He also added that he is awaiting instructions from the board.

Employers Confederation of the Philippines President (ECOP) Donald G. Dee, on the other hand, said that ECOP is still studying various options.

“We will bring forward our proposal in the meeting of the wage board,” he said in a text message.

According to TUCP vice-president and representative of the labor groups to the RTWPB deliberations, Angelita D. Señorin, the labor groups and the employers’ confederation are set to submit their position papers on Monday, Aug. 7. It is only after all the position papers are submitted will the wage board decide on the matter.

The statement released by Mr. Tanjusay noted that ALU-TUCP submitted its position paper on Friday, petitioning for an “across-the-board P184 daily wage increase... for workers in the cities and municipalities of the National Capital Region on top of the existing legislated P491 daily minimum wage.”

The RTWPB is currently deliberating on the wage increase petition of three labor groups: TUCP, ALU, and Minimum Wage Earners and Advocates, an affiliate of the Philippine Trade and General Workers Organization.

The RTWPB has conducted a series of public hearings focusing on the labor groups’ and the employers’ concerns. After submission of the position papers, the wage board has 45 days to deliberate and come up with a decision. According to Ms. Señorin, this is more likely to come in September. -- Mario M. Banzon

Hike workers’ pay, Malacañang urged

File Photo

Organized labor has reiterated its call on President Rodrigo Duterte to increase the minimum wage nationwide, citing falling purchasing power of the daily pay and rising cost of living.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) issued the appeal even as the Regional Tripatite Wages and Productivity Board-National Capital Region (Metro Manila) deliberates this week on a final new wage increase for minimum wage workers in the region.

The ALU-TUCP earlier filed an across-the-board P184 daily wage hike for minimum wage workers in Metro Manila.

“President Duterte can text or call the wage board and prod them the amount of wage increase that he desires and it will be done. The President can also issue a presidential executive order mandating a wage increase needed by workers and their families to cope with and survive the increasing prices of goods and services. The President has a variety of options to make a significant wage hike,” ALU-TUCP spokesman Alan Tanjusay said over the weekend.

He added that the workers had been desperate for a significant across-the-board wage increase for many years but the wage board has always been granting meager wage increases despite an improving economy.

“The last time the workers experienced a significant wage hike was in 1989 or 28 years ago when then-President Corazon Aquino gave a P25 daily across-the-board wage increase nationwide. After that, the wage board has been issuing a pittance… as if the workers are beggars,” Tanjusay said.

The ALU-TUCP said workers’ minimum wage should be P675 a day, not the current P491 for workers in the NCR, adding that the real value of P491 has eroded to P375.

The wage board last year issued Wage Order (WO) NCR-20 effective June 2, 2016 granting P10 as daily COLA (cost of living allowance).

On September 6, 2013 it granted a P10 daily increase in basic wage effective October 4, 2013 and the integration of the P15 of the P30 COLA under WO NCR-17 effective January 1, 2014.

WO NCR-19 on March 16, 2015 granted a P15 daily increase in the existing basic wage effective April 4, 2015.

These increases, according to the ALU-TUCP, have been overtaken by increases in electricity and water rates, health and education costs and prices of oil including liquefied petroleum gas and basic goods and services.

Despite the gains in the economy and productivity, workers and their families have not been granted a single peso in real wage increase since 1989, it said.

According to government official figures, as of April 2017, the purchasing power of the legislated P491 daily minimum wage in NCR is only P357.09, eroded by 27.3 percent. - BY WILLIAM DEPASUPIL, TMT

Labor group urges Duterte to hike NCR wages to P675 per day

President Rodrigo Duterte should declare a nationwide, across-the-board wage hike of at least P184 per day to keep workers afloat amid falling purchasing power and rising cost of living, noting that the last significant pay hike was in 1989 or 28 years ago.

In a statement on Sunday, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said that the suggested P184-per-day hike is on top of the existing legislated P491 daily minimum wage in the national capital region (NCR), or a total of P675 .

ALU-TUCP made the call ahead of the Metro Manila wage board meeting to deliberate on possible wage increase.

Also, it said that the chief executive has a lot of options to effect a just minimum wage hike.

"President Duterte can text or call the wage board and prod them the amount of wage increase that he desires and it will be done," the group said.

He can also also "issue a presidential executive order mandating a wage increase amount needed by workers and their families to cope with and survive amid increasing prices of goods and services," the group added.

In a position paper submitted last Friday in light of its petition for an across-the-board wage increase, the group proposes a P184 daily wage hike.

ALU-TUCP spokesperson Alan Tanjusay said: "The last time the workers experienced a significant wage hike was in 1989 or 28 years ago when the late President Cory Aquino gave a P25 daily across-the-board wage increase nationwide. After which, the wage board has been issuing pittance wage orders as if workers are beggars."

Tanjusay argued that workers' wage should be at P675 a day in NCR, instead of the current P491, which at present has a real value of P375.

The Board last year issued Wage Order No. NCR-20 effective June 2, 2016, granting a P10 cost of living allowance (COLA) per day.

In September 2013, the board granted a P10-per-day increase in basic wage effective October 2013 and the integration of the P15 of the P30 COLA under Wage Order Number NCR-17 effective 1 January 2014; WO No. NCR - 19 on 16 March 2015 granted P15 in daily increase in the existing basic wage effective April 2015.

But Tanjusay said that the series of meager increases is a pittance amid the rising costs of electricity, water, fuel, basic goods; health, education, and other services.

According to official government figures, as of April 2017, the purchasing power of the legislated P491 daily minimum wage in NCR is only P357.09, eroded by 27.3%. —LBG, GMA News

Labor group reiterates call to Duterte for across-the-board wage hike

BIG labor has reiterated its call to President Rodrigo Duterte for a nationwide across-the-board increase for minimum wage earners amid the falling purchasing power and rising cost of living.

Labor group Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) issued the appeal ahead of the Regional Tripatite Wages and Productivity Board-National Capital Region meeting this week to deliberate on a final new increase for minimum wage workers in Metro Manila.

The ALU-TUCP had filed an across-the-board P184 daily increase for minimum wage workers in Metro Manila.

"President Duterte can text or call the wage board and prod them the amount of wage increase that he desires and it will be done. The President can also issue a presidential executive order mandating a wage increase (based on the) amount needed by workers and their families to cope and survive with the increasing prices of goods and service. The President has the variety of options to make a significant wage hike," said ALU-TUCP spokesperson Alan Tanjusay.

Tanjusay said the workers had been desperate for a significant across-the-board increase for many years because the wage board has always been granting meager and pittance increases despite an improving economy.

"The last time the workers experienced a significant wage hike was in 1989 or 28 years ago when the late President Cory Aquino gave a P25 daily across-the-board wage increase nationwide. After which, the wage board has been issuing pittance wage orders as if workers are beggars," Tanjusay said. - WILLIAM B. DEPASUPIL

House oks ending "endo"

The House committee on labor and employment moved a step closer towards the passage of the much-awaited bills seeking to end the practices of contractualization and de-regularization of workers by approving the creation of a technical working group (TWG) that will consolidate all 25 measures pertaining to “endo.”

In a hearing held this week which was presided by committee chairman Rep. Randolph Ting (3rd District, Cagayan), the panel approved the creation of the TWG that will consolidate House Bills 55, 76, 170, 341, 556, 563, 709, 712, 895, 916, 1045, 1208, 1351, 1563, 1837, 1857, 1910, 2389, 3556, 3769, 3802, 4443, 4444, 5130 and 5264 which seek to strengthen the security of tenure of workers in the private sector by ending the practices of contractualization and de-regularization.

TUCP Rep. Raymond Democrito Mendoza

Ting said the TWG will use as reference in the TWG discussions House Bill 4444 authored by Rep. Raymond Democrito Mendoza (Party-list, TUCP), HB 556 by Rep. Ariel Casilao (Party-list, ANAKPAWIS) and HB 3556 by Rep. Mark Go (Lone District, Baguio City).

As to the composition of the TWG, Ting said this will include the authors of the bills, representatives of the different labor groups, the Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), and other concerned agencies.

Mendoza said his bill aims to totally prohibit contracting, sub-contracting, manpower agency hiring, outsourcing, including those undertaken by so-called service cooperatives engaged in manpower supply.

“All workers must be treated as regular employees, doing away with other types or definitions of employment. Moreover, contractualization clashes with the principle of social justice enshrined in our Constitution and must therefore be criminalized. Thus the bill provides penal provisions against violators,” said Mendoza.

Casilao said alongside the Duterete administration’s plan to abolish contractualization, the Kilusang Mayo Uno (KMU) and All Workers’ Unity have been demanding the end of contractualization schemes, a fundamental workers’ agenda presented to President Duterte since the campaign in 2016.

“With the end in view of uplifting the Filipino workers from deepening poverty and misery, prohibiting contractualization fundamentally shall protect the national interest and democratic ideals of Filipino society,” said Casilao.

Go said cases of violation on the prohibition on labor-only contracting and what is commonly called as “5-5-5” or “endo” have become rampant and unabated despite the provisions of the Labor Code and its implementing rules, DOLE Department Order 18-A.

“The guiding principles of DO 18-A provide: Contracting and sub-contracting arrangements are expressly allowed by law and are subject to regulations for the promotion of employment and the observance of the rights of workers to just and humane conditions of work, security of tenure, self-organization and collective bargaining. My bill seeks to regulate outsourcing of work by providing conditions for its practice and penalties for any violation,” said Go.

Go further said his proposal also seeks to resolve recurring problems in the practice of contractualization and to achieve a “win-win” solution for both the employees and employers, and as partners in attaining sustainable growth and development for the country.

The various labor groups and organizations and concerned agencies voiced out their respective position on the bills during the hearing. They also submitted their position papers to the committee.

The Associated Labor Unions (ALU)-Southern Mindanao and Northern Mindanao Region Offices, along with the Trade Union Congress of the Philippines (TUCP) and the NAGKAISA Labor Coalition strongly called for the total prohibition of labor contractualization in all its forms.

The ALU-TUCP-NAGKAISA said there are 13 million contractual workers out of the 43.7 million workforce in the country. It is time to reverse the trend so that there will be more regular workers receiving the social benefit obligations due them from the employers, it said.

The group said the epidemic scale of contractualization is the primary reason why the soaring Gross Domestic Product (GDP) growth numbers has not resulted in inclusive development. “There is a widening of the gap in income inequality because workers under contractualization are not given their SSS, Pag-IBIG, and PhilHEALTH benefits. And because regularization is not possible, they cannot organize unions through which they can bargain to get a fair share of the wealth they created,” the ALU-TUCP-NAGKAISA said.

The Sentro ng mga Nagkakaisa at Progresibong Manggagawa or SENTRO, representing at least 80,000 members in the private, public and informal sectors, including migrant workers, women and the youth, expressed its support for proposals pertaining to “endo”, specifically HB 4444.

“The years spent by the government trying to regulate subcontracting has failed to protect workers. The reason is simple: indirect employment inherently results in inequity,” said SENTRO in its position paper.

Meanwhile, Labor and Employment Secretary Silvestre Bello III, in a position paper, said the DOLE is not inclined to support the call for a total prohibition on contractualization because of its adverse effects on employment opportunities and industry competitiveness.

Bello said the practice of contracting and subcontracting is also a problem in other developed and developing countries, amidst intensified competition among firms due to globalization.

“The DOLE does not recommend ending contractualization as a practice. The Department, however, fervently believes that its abuse should be stopped and be meted with stricter or stiffer penalties, which can be made possible through legislation. Contractualization should not be allowed under abusive terms such as in labor-only contracting, which as defined in the Department Order No. 174, series of 2017, has the following nature or condition: The contractor or subcontractor has no substantial capital or does not have investments in the form of tools, equipment, machineries, supervision, work premises, among others; and the contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal; or the contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal,” said Bello.

Meanwhile, Maria Lourdes Yaptinchay, director of the Sector Planning Bureau (PB) of the Department of Trade and Industry (DTI), in a position paper submitted to the committee, said they are of the view that flexible work arrangements such as legitimate outsourcing and contracting-out work should remain and continue.

“Outlawing job contracting in general may not be in the best interest of our business and the economy. It may lead to the demise of legitimate contractors, which approximately employ 416,343 workers. Local companies/ business would, therefore be forced to directly employ workers to do the work that were previously contracted-out to manpower or contracting agencies, thereby increasing production/overhead cost by at least 30 percent which will lead to higher prices of goods,” said Yaptinchay.

The other authors of the bills seeking to end contractualization are Reps. Kaka Bag-ao, Emmeline Aglipay-Villar, Karlo Alexei Nograles, Tom Villarin, Winston Castelo, Bellaflor Angara-Castillo, Angelina Tan M.D., Harry Roque Jr., Emmi De Jesus, Carlos Isagani Zarate, Aniceto Bertiz III, Bernadette Herrera-Dy, Sol Aragones, Linabelle Ruth Villarica, Joseph Stephen Paduano, Arthur Yap, Manuel Zubiri, John Marvin Nieto, Sherwin Tugna, and Anthony Bravo. / Congress Press RBB

Nagkaisa dismayed over Duterte’s non-mention of security of tenure in SONA

Nagkaisa Labor Coalition expressed dismay over the SONA of President Rodrigo Roa Duterte for failing to address the issue of contractualization. "His silence is a great disappointment for workers as we were expecting him to announce the release of an executive order prohibiting all forms of contracualitzation," Nagkaisa said.

"For two hours, we were waiting for President Duterte to certify as urgent House Bills 4444 and 556 on Security of Tenure, but no announcement came," Nagkaisa added.

It could be recalled that during a dialogue with Nagkaisa and other labor groups on Labor Day in Davao City, President Duterte vowed to look into releasing an executive order. "That issuance would have superceded DOLE DO 174 released in late March that not only failed to prohibit all forms of contractualization, but abetted it," Nagkaisa said. He set a deadline of May 10 for labor groups to submit a draft EO.

"Nagkaisa, the National Anti-Poverty Commission, KMU and other labor groups submitted a common, unified draft two days before the deadline. Two and a half months later, we still haven't gotten any feedback," Nagkaisa said.

Nagkaisa also expressed deep concern over President Duterte's announcement of right-sizing in government.

"How can they talk about right-sizing when there are 595,000 job orders and contracts of service workers performing essential functions in government? They are the overworked and underpaid in government, many of whom are health workers and teachers," Nagkaisa said.

Nagkaisa is not pleased with the Tax Reform Package Bill in its present form, so it did not welcome President's Duterte's endorsement of it.

"Tax Reform Administration should be the first tax measure that Congress approves in order to improve tax collection and prosecute tax evaders. We also support the reduction of Personal Income Tax (PIT), but reject the lowering of Corporate Income Tax (CIT). It is the taxes on profits that should be increased," Nagkaisa added.

"Besides, adding on to the tax burden of workers at this point in time would be a double whammy as it seems our taxes will be used to fund the war in Mindanao," Nagkaisa said.

The President defended the extension of Martial Law for much of his SONA. NAGKAISA reiterates its opposition to the extension or expansion of Martial Law based on the following grounds:

1. It is not necessary;

2. It will be very expensive;

3. It is unproductive and is a disincentive to economic progress;

4. It weakens our democratic institutions; and

5. It strengthens the hands of the totalitarians.

"We believe that lawlessness in many forms can be addressed by a highly professional and effective military/police leadership. Ensuring professionalism and quality armed services is where Presidential powers are best exercised," Nagkaisa said.

Workers ‘frustrated’ over failed promise on ‘endo’

THE country’s biggest labor groups were frustrated and felt neglected by President Rodrigo Duterte’s failure to lay down a clear-cut policy on work contracting and other forms of short-term employment during his second State of the Nation Address (SONA) on Monday.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), through spokesman Alan Tanjusay, on Tuesday said 25 to 30 million contractual workers were expecting that the President will fulfill his promise to end the contractualization scheme during his speech.

“We are very frustrated with Mr. Duterte as it turned out but we have no choice but to continue and [raise]the ante in pressing him to fulfill his promise to abolish endo (end of contract) and all forms of contractualization,” Tanjusay said in a text message to The Manila Times.

He added that only the fulfillment of the President’s campaign promise and subsequent meetings with leaders of various labor groups to put a stop to all forms of contractualization can free millions of workers from the “slavery” of contractualized work , jobs that have no security of tenure and paid with low wages and meager benefits.

“Mr. Duterte asked labor groups for time on the issue of contractualization on Labor Day. We hope that he would abolish it as he promised he would during his SONA,” Tanjusay said.

“We urge the President to make clear in no uncertain terms, in plain, categorical language, his placing the contractual problem as among our—and his—top priorities in the national order of battle. All surveys indicate that the Top 3 concerns nationally are the spiralling the cost of goods and services, the meager wages and the lack of decent employment. All are directly traceable to the regime of contractualization,” according to the ALU-TUCP spokesman.

The group noted that during their May 1 Labor Day dialogue with Duterte in Davao City, the President asked labor leaders to draft a presidential Executive Order (EO).

The draft EO was submitted by the ALU-TUCP and the Nagkakaisa Labor Coalition last May 9 in compliance with the President’s directive.

Covered by the EO are contracting and sub-contracting arrangements including cooperatives.

The order prohibited all forms of labor contracting, labor-only contracting or job contracting, which are declared illegal and are therefore strictly prohibited.

It stated, “All parties engaged in any arrangement in violation of this EO shall automatically be considered the worker’s direct employer and the latter shall be deemed as direct employees.”

The order said violations of the EO shall be penalized under existing laws and regulations.

If the offense is committed by cooperative, corporation, partnership, trust, firm, association or any juridical entity, the penalty shall be imposed upon the guilty officers of such groups.

The draft EO, if approved by the President, will effectively nullify Department Order (DO) 174 of the Department of Labor and Employment, the new guidelines on contractualization that took effect last April 3.

DO 174 replaced DO 18-A in response to the workers’s demand to abolish contractualization.

Labor groups rejected DO 174, claiming that it only benefits employers and manpower service providers and cooperatives.

During his meeting with organized labor in Davao City, the President assured them that he understood what the workers want and suggested that “we assert our public interest power to ensure a just transition to help him meet his promise to the nation.”

“I stand firm on my conviction to end endo. Just give us time. The Labor Code guarantees all the right to security of tenure. This has to be strictly enforced. Labor laws must be enforced against endo and labor-only contracting,” Duterte told the workers.

The President admitted in the labor dialogue that there is “resistance and objections” coming from some members of his Cabinet and interest lobby groups on his decision to ban contractualization “but the President said he has no sympathy for oligarchs.” - By WILLIAM DEPASUPIL, TMT