FDA urged: Test Johnson’s baby powder for asbestos

Business World photo

ORGANIZED labor has expressed alarm over reports that the United States Food and Drug Administration (US-FDA) found cancer-causing chrysotile asbestos fibers in one batch of a baby powder that is widely popular among consumers in the Philippines.

Workers group Associated Labor Unions-Trade Union Congress of the Philippines (ALU-
TUCP) said on Friday the report should also be investigated by the Philippines’ FDA, considering the popularity of the Johnson and Johnson (J&J) baby powder among Filipino consumers.

On October 18, the US-FDA disclosed it found the presence of asbestos in one batch of the product and advised consumers to stop using J&J baby powder Lot # 22318RB.
The findings prompted J&J to voluntarily recall 33,000 bottles.

“We are calling upon the FDA authority to proactively take steps to mitigate the undue anxiety felt by consumers caused by this serious discovery of asbestos contamination in a baby product commonly used by so many Filipinos across our growing population. We are urging them to conduct product evaluation test to assure the quality and safety of the product… to the health of consumers,” said Gerard Seno, national executive vice president of ALU-TUCP.

“The FDA must guarantee to all of us the safety, purity and efficacy of this product in order to protect the health and welfare of the general public. It is better for FDA to err on the side of caution than to realize too late that many people’s health and safety have already been compromised simply because they didn’t check the product,” he added. - By William Depasupil, TMT

2-year probationary period to force Filipinos to work abroad

TUCP president Raymond Mendoza said the proposed measure, if approved, will also “expand the gap between the rich and the poor and strengthen the short-term labor slavery practice in the country.” File

MANILA, Philippines — The proposed two-year probationary period for newly hired employees has “wide-ranging implications,” including forcing Filipinos to seek employment abroad, the Trade Union Congress of the Philippines (TUCP) warned yesterday.

TUCP president Raymond Mendoza said the proposed measure, if approved, will also “expand the gap between the rich and the poor and strengthen the short-term labor slavery practice in the country.”

Mendoza noted that House Bill 4802 authored by Probinsiyano party-list Rep. Jose Singson Jr. “is very dangerous and highly disadvantageous to workers because of its deleterious effect on working people and their families once it is enforced.”

“We are at a time when we are struggling to close the gap between the rich and the poor by eliminating this short-term endo (end-of-contract) and to minimize all forms of contractualization employment scheme in the country and ensure a just and fair economic share for workers in a growing economy,” he added.

Mendoza also said the bill would “practically empower abusive employment and business practice with a larger latitude and longer contractualization short-term work scheme.”

Under HB 4802, the extension of the probationary period is being proposed to be prolonged from the current six months to two years.

Singson claimed that six months are not enough for employers to determine if a worker deserves to be regularized.

During this period, probationary workers do not enjoy security and other benefits afforded to regular workers, like vacation and sick leave, separation pay, 13th month pay, Christmas bonus, allowances and paternity and maternity leave.

“Extending the probationary employment period to two years is a race to the bottom scheme because it will improve the currently widely practiced endo labor slavery system and will make contractualized work permanent in the country,” Mendoza said.

Under the current working conditions in the country, some 6,000 to 7,000 Filipinos are leaving every day to work abroad, according to the trade union leader.

He added that if the bill becomes law, the number of Filipinos working abroad will increase, thus resulting in “greater brain drain” and more children suffering from having a parent or both parents away.

‘Mindless, heartless’

Meanwhile, Sen. Leila de Lima described as “mindless and heartless” Singson’s bill which, she said, is definitely not a solution to Filipino workers’ woes.

De Lima said the proposed measure would only prolong the difficulty of the already difficult life of an ordinary working Filipino.

“The proposal for a two-year probationary period for workers is not a solution at all to the long-time woes of Filipino workers. It will even prolong the agony of the workers. It is a fog in which to hide the real issue,” she said.

The senator added this ominous fog of a proposal will not only enshroud the actual issue – the abusive “endo” practice – but will also “expose our workers to labor malpractice. – Sheila Crisostomo (The Philippine Star) With Cecille Suerte Felipe

House bill seeks to set up banana research center

A Department of Science and Technology staff shows tissue cultured from varieties of wilt-resistant cavendish bananas. -- BW FILE PHOTO

A PARTY-LIST legislator has filed a bill seeking to establish a banana research institute to develop better planting methods and find new uses for the plant, one of the Philippines’ leading fruit exports.

Rep. Raymond C. Mendoza of TUCP Party list filed House Bill No. 2622, noting that the banana industry pays about P1.78 billion in local taxes a year and provides income opportunities for some 30,000 agrarian reform beneficiaries.

“The industry has become a potent instrument of development and empowerment for almost two million residents of Mindanao who depend on it… It is ironic that the strategic value of the industry was built with little or no assistance from government,” Mr. Mendoza said in his explanatory note.

The measure hopes to establish the National Research, Development and Extension Center for Banana at the University of Southeastern Philippines in Davao City.

The research center will develop improved cultivars through traditional and biotechnological methods; develop efficient, economic, and productive banana production technologies; develop effective and efficient production systems for all banana varieties; discover productive banana-based farming systems; establish international linkages for banana research; and provide training for workers and farmers.

The bill provides for tax and duty exemptions for the research center, including on imported machinery. — Vince Angelo C. Ferreras

Labor groups hail contributions of ex-Senate President Pimentel

Former Senate president Aquilino “ Nene” Pimentel Jr (Czar Dancel / MANILA BULLETIN FILE PHOTO)

Labor groups expressed their condolences to the family of former Senate President Aquilino “Nene” Pimentel Jr., who passed away Sunday morning.

The Trade Union Congress of the Philippines (TUCP) said Pimentel was a “conscience of our nation and a tireless defender of democracy at a time when too many Filipinos chose the path of silence, acceptance, and obedience to the dark heart of a dictatorship.”

“His lifelong struggle for political democracy and economic democracy inspires the TUCP and the entire working class to never give up and to never surrender,” the group said.

The TUCP also cited Pimentel’s contribution as the latter authored the Local Government Code “to ensure genuine autonomy and self-direction for local governments.”

Pimentel also authored the Cooperative Code of the Philippines and the Charter of the Charter of the Cooperative Development Authority.

“This was meant to empower ordinary workers, farmers and fisherfolks by pooling their finance together to help each other free their class from economic exploitation by cartels, oligarchs, and the vested interests,” the group said.

The Federation of Free Workers (FFW) said that the late senator’s good deeds will remain to be emulated.

“FFW extends its prayers and condolences to the bereaved family of a good man,” it said.

“We note with sadness the death of a good man and workers’ companion in the struggle for social justice,” it added. - By Analou De Vera

TUCP: 700,000 workers in PHL may lose jobs due to CITIRA

JOB LOSSES? Citing estimates by business groups, labor group Trade Union Congress of the Philippines says some 700,000 workers may lose their jobs if the Citira bill is passed. File photos by AFP 

The livelihood of around 700,000 workers in the country will be imperiled by the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) as it threatens to push investors to shut down and transfer to other countries, according to the labor group Trade Union Congress of the Philippines (TUCP) on Monday.

“Our economic managers are hell-bent in pushing thousands of workers and their families towards the fire by pushing the approval of the CITIRA without any credible job protection measures and believable safety nets for workers affected by the enforcement of this second tax reform package measure,” TUCP vice president Louie Corral said in a statement.

CITIRA, the second package of the Duterte administration's comprehensive tax reform program, seeks to reduce the corporate income tax (CIT) rates from the current 30% to 20% in 2029, on a staggered basis.

It also aims to foster a more competitive fiscal incentives system by making tax perks time-bound, transparent, targeted, and performance-based.

The DOF previously claimed that this measure would create 1.4 million jobs when passed into law.

Corral, however, slammed the DOF officials for allegedly spreading "half-truths" for the passage and approval of the CITIRA.

"They’re saying workers will be protected and new jobs will be created with CITIRA but if you take a closer look at the measure, these provisions are insubstantial and vague when it comes to protecting jobs and providing safety nets for workers,” said Corral, while noting that the proposed measure only provides P500 million annual budget for displaced workers.

He added that providing allowances to displaced workers for a period of three to six months, a proposal backed by Trade Secretary Ramon Lopez, is not a "sure-fire formula."

“The idea is devoid of sincerity and logic. We all know that with the kind of government bureaucracy that we have, workers would be unable to get anything. Tinanggalan na nga siya ng trabaho ng gobyerno pagkatapos siya pa ang magpapatunay na tinanggal siya sa trabaho para makakuha ng limos?" Corral said.

He underscored that ecozone workers who will likely be affected must be consulted regarding the matter.

On the other hand, the DOF previously claimed that the foreign investors were unfazed by the CITIRA.

"Despite the persistent fear-mongering activities of certain groups, the international investment community continues to signal its confidence in the policies of the Duterte administration and in the strength of the Philippine economy and its workforce, as illustrated by the surge in FDI [foreign direct investment] pledges in the year’s first semester,” Finance Undersecretary Karl Kendrick Chua had said.

“It goes to show that the noisy naysayers against the long-due efforts to reform the country’s convoluted corporate income tax system are mistaken,” he added.

Philippine Economic Zone Authority (PEZA) Director General Charito Plaza also expressed support to the measure.

Last month, the House of Representatives approved the CITIRA bill on its third and final reading. The Senate version is still undergoing deliberations. — By DONA MAGSINO, GMA News , LDF, GMA News

TUCP slams Finance for tax push

The labor group Trade Union Congress of the Philippines slammed the Department of Finance for pushing the Corporate Income Tax Incentives Reform Act without consulting the labor sector, saying more than 700,000 workers would be displaced if the new tax scheme should become a law.

“Our economic managers, led by the Finance department, is (sic) about to push thousands of workers to fall through the cracks by introducing Citira tax scheme in the same way they shove workers and their families’ throat with the TRAIN Law inflation with no consultations with grossly affected workers’ sector,” TUCP president Raymond Mendoza said in a statement.

Firms affected by the process may close down and transfer to another location or may be forced to cut jobs and displace around 703,000 workers.

The DOF is seeking Congress’ approval for the second package of the Comprehensive Tax Reform Program, known as the CITIRA bill.

The measure seeks to entice investors by lowering the corporate income tax to 20 percent from the current 30 percent by overhauling the tax incentives enjoyed by firms.

Citira is the renamed version of the Tax Reform for Attracting Better and High-Quality Opportunities bill that the House had passed in the previous 17th Congress.

The Trabaho bill, however, ran out of time in the Senate and had to be refiled in the 18th Congress.

The measure would also remove certain tax perks enjoyed by companies in the country.

The Citira bill retains the current incentives for two years, for investors to have enough time to adjust to the new tax scheme. Perks would also be targeted, time-bound, and transparent.

Though the measure allotted P500-million annual budget for grants and support programs of the Department of Labor and Employment for displaced workers in companies affected by the corporate income tax adjustments, the TUCP accused the DOF ignoring workers plight when it comes to the implementation of the law.

“Workers got nothing from TRAIN Law despite of the budget provisions it has for affected sector. Now our white-collared Finance people are again deliberately playing dice on the lives of workers and their families by dangling an annual budget provisions for displaced workers and by sugarcoating CITIRA with a million jobs it supposes to create,” Mendoza said.

Mendoza said the P500 million yearly budget for CITIRA-displaced workers is highly insufficient compared with the day-to-day expenses amid rising cost of living created by TRAIN Law.

“How did they arrive with the amount? How many firms would really be affected by CITIRA? How many workers would really be affected? What are these government programs that could save the thousands of displaced workers?” said Mendoza.

The TUCP is proposing a genuine transition program for displaced workers prior to the implementation of CITIRA and not after its implementation.

The group is asking the economic managers for labor consultations on CITIRA and on other programs and policy reforms affecting the labor sector. - Vito Barcelo

Hike Citira aid for displaced workers—group

Inquirer photo

The country’s largest labor group on Sunday demanded the allocation of more government funds for workers who may be displaced by the passage of a bill that mandates the rationalization of fiscal incentives.

The Trade Union Congress of the Philippines (TUCP) said the proposed P500-million government aid for workers that may lose their jobs due to the Corporate Income Tax and Incentives Rationalization Act (Citira) is “too small.”

“The P500 million yearly budget for Citira-displaced workers is highly insufficient compared with the day-to-day expenses amid rising cost of living created by the TRAIN [Tax Reform for Acceleration and Inclusion] law,” said TUCP President Raymond Mendoza in a statement.

Albay Rep. Joey Salceda said the amount will be used for the skills training of the affected workers. Salceda said last month that the money is not needed as the passage of Citira will not result in job losses.

A business group estimated over 700,000 workers will be retrenched if the Citira bill is enacted as it will remove fiscal incentives in economic zones in exchange for lower corporate income taxes (CIT).

Government officials are mum on the possible displacement of workers following the passage of the bill, but they said the measure will generate 1.5 million in “net employment.”

The TUCP criticized the administration for its “cavalier response” to the issue, which could affect the employment of thousands of workers.

“Our white-collared [Department of] Finance people are again deliberately playing dice on the lives of workers and their families by dangling an annual budget provisions for displaced workers and by sugarcoating Citira with a million jobs it will supposedly create,” Mendoza said.

He called on the government to conduct more public consultations, which should include labor groups, before the measure is approved by Congress.

Mendoza said issues that should be clarified during the consultations are the budget that should be allocated for workers that may be displaced by Citira as well as the number of companies and workers that may be affected by the measure.

The TUCP said the administration should come up with a “genuine transition program” for the affected workers.
‘Wider income gap’

The Freedom from Debt Coalition (FDC) said the Citira bill, formerly known as the Trabaho (Tax Reform for Attracting Better and High-quality Opportunities) bill, will worsen inequality in the country.

FDC said the government is giving businesses a tax gift in the form of the reduction in corporate income taxes. This is “regressive taxation” which punishes the poor who pays more due to the value-added tax (VAT) law and the TRAIN law.

This will increase inequality in the Philippines where the country’s Gini coefficient is already at 0.4439 as of 2015, according to the Philippine Statistics Authority. The Gini coefficient is a measure of inequality where zero indicates perfect equality and 1, perfect inequality.

“As it is, the top 50 corporate families have wealth equivalent to .0000021 percent of the aggregate wealth of the 23 million families. The Philippines is clearly one of the most unequal societies of the world. With Citira, inequality will deepen further,” FDC Executive Director Zeena Bello Manglinong said in a statement.

Manglinong said the Department of Finance’s own data showed that the country loses P300 billion annually from foregone corporate income taxes.

FDC said Citira provisions on the reduction of CIT are “unnecessary and archaic, quick-fix scheme such as tax competition.”

It added that the claim of the government that the country’s CIT is the highest in the region is “inaccurate.”

“FDC research also shows that some claims of the government are not exactly accurate. Vietnam’s CIT is at 20 percent, but what is often failed to be mentioned is that this is merely a floor rate. Vietnam’s CIT rate goes as high as 32 percent to 50 percent, especially for oil, mining and gas companies,” the group said.

However, FDC said it agreed with the Citira provision of removing perpetual incentives to companies.

While fiscal incentives should not be forever and must be “performance-bound and time-bound” as well as “efficient,” the group said Citira’s “foreign direct investments-financed development paradigm” remains “dangerous” to the economy.

This, FDC said, must be replaced by one that is based on “high value-added, technology-enabled manufacturing and services sectors.”

“The Freedom from Debt Coalition believes that the way forward is an industrial policy that purposely builds up the capacity of domestic firms to develop and compete,” FDC said.

“This must also mean that our method of taxation must also follow suit. We cannot pretend that technocrats in government have the sole solution to issues plaguing our country. It is time that we step forward with an alternative,” it added. - By Samuel P. Medenilla & Cai U. Ordinario

TUCP party-list files security of tenure legislation as HB 4892

Philstar file photo

THE TRADE UNION Congress of the Philippines (TUCP) Party-list said it has filed its version of the Security of Tenure bill, one of various versions of the legislation in play seeking to end the practice of contractualization after a previous bill passed by Congress was vetoed.

TUCP Party-list Rep. Raymond C. Mendoza filed House Bill No. 4892 which if passed will be known as the Security of Tenure Act of 2019. It seeks to criminalize all forms of contractualization and ban all forms of fixed-term employment.

Contractualization, also known as “endo,” denies workers a pathway to permanent employment and benefits, typically by terminating employment before the 6-month deadline for achieving permanent status and forcing workers to sign up again also on a contract basis.

“The bill seeks to provide security of tenure to 9 million Filipino ‘endo’ workers who are being exploited today in a modern form of slave labor […] Endo workers experience not being paid the minimum wage, even as they go without social security, Philhealth and PAG-IBIG coverage. Further they are denied their Constitutional rights to organize and to bargain,” Mr. Mendoza said in a statement.

The measure aims to totally prohibit contracting, subcontracting, manpower agency hiring, and outsourcing, including those undertaken by so-called service cooperatives engaged in manpower supply.

“This Bill seeks to criminalize labor-only contracting which is already prohibited under our existing laws but is perpetually being circumvented to deprive workers of their Constitutionally-guaranteed rights to Security of Tenure,” according to the bill’s explanatory note.

Under the bill, all employees regardless of employment status or position cannot be dismissed without cause or due process.

The measure also provides that all employees, except those under probation, be considered regular including project-based and seasonal employees.

HB 4892 also prescribes fines of P50,000 to P5 million, and imprisonment of six months to one year for violators.

In his July 26 veto message to the Senate, President Rodrigo R. Duterte said that while he stands firm in his commitment to protect the workers’ right to security of tenure, the enrolled bill “unduly broadens” the scope of labor-only contracting, which is already banned by law. — Vince Angelo C. Ferreras