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

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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