TUCP bats for ‘affordable’ in-city tenement housing

The labor group Trade Union Congress of the Philippines said on Thursday that it would propose to the government the construction of affordable in-city tenement housing for minimum-waged earners near their working places, which would not only help decongest traffic but provide workers decent houses to live.

“In the light of growing inadequate mass transport problems and worsening traffic congestion, we shall also demand that Pag-IBIG expand its services and benefits to members by initiating development of an affordable in-city tenement housing for lowly-paid workers and develop housing projects for workers in the regions and the countryside, in the export processing zones, Overseas Foreign Workers, and government employees,” TUCP president Raymond Mendoza said.

The in-city housing program for workers will help working people and their families cope with rising cost of living in metropolis and minimize a range of stress-related disorders and diseases caused by travelling and commuting in a problematic mass transport system environment, Mendoza explained.

“We are not closing our doors to an increase in contributions in Pag-IBIG as we have yet to see the proposal from them. We shall wait for their presentations before we make the decision to support it or not,” the TUCP said.

Mendoza said that any increase should redound to lower home loan interest rates, higher maturity savings returns for members, increased efficiency in Pag-IBIG operations, greater accessibility to home loans particularly for minimum wage earners and low income workers.

Mendoza said they are looking at utilizing idle government-owned lands in the National Capital Region to build tenement housing units similar to tenement housing in Taguig and Tondo, Manila to reduce workers’ daily expenses in the face of their meager daily salary.

“We also acknowledge that the dividends that they have been giving out to members have improved in the past several years which is good for the workers and their families because their contributions is considered forced savings and Pag-IBIG should sustain this,” Mendoza said.

“We also understand from their last Chairman’s report that the number of home loan borrowers have increased substantially and it is important to ensure the sustainability of Pag-IBIG.”

The current contribution rate by each member contribution rate is pegged at P100 employee share plus P100 employer counterpart, or a total of P200 per month. By law, the contribution rate is set at 2% of a member’s salary, with a cap of P5,000 Maximum Fund Salary (MFS) of P5,000 per month. This was set way back in 1986. The present value of P200 then is now P12.75.

Contributions of members, including employer’s counterpart contributions are returned to Pag-IBIG members upon reaching membership maturity of 20 years. The average total savings of a member for 20 years is approximately P80,000.00. There are members who voluntarily increase their contributions.

Members are also able to borrow 80% of their total savings with the Fund under Pag-IBIG’s multi-purpose loan program.

Members are able to borrow from the Fund housing loans which they can use to purchase their own homes. The maximum housing loan a member can borrow is up to P6 Million depending on capacity to amortize the loan. They can use the loan to purchase a house and lot, construct a house, a condo unit, or house improvement.

Members are also entitled to Calamity Loans equivalent to 80% of their total savings with the Fund during times of natural disasters and declaration of state of calamities in their areas of residence.

Higher contribution rates will result to higher savings, higher MPL and Calamity loan entitlements and low housing loan interest rates. - by Vito Barcelo

Wage board optimistic on P89 wage hike appeal in Northern Mindanao

AFTER completing three provincial wage consultations last month, the Regional Tripartite Wages and Productivity Board in Northern Mindanao (RTWPB) is hopeful for the immediate deliberation of the P89 wage increase petition filed by the Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP) on July 16, 2014.

Lawyer Gretchen Lamayon, RTWPB-10 information officer, said the wage board has been doing its best to cap off remaining consultations in Lanao del Norte and Misamis Occidental by the end of September.

Lamayon, however, admitted to Sun.Star Cagayan de Oro that various reactions from the workers and employers sectors are obstacles needed to be overcome to come up with a fast resolution.

"So far, from the three provinces, some agreed with the increase. There were some who said it has to be reduced. And, of course, there were those who said P89 is too much," she said Tuesday.

Wage consultations have already been conducted in the provinces of Camiguin, Misamis Oriental, and Bukidnon in August 2014.

Lamayon said the executive board of the RTWPB-10 needs more time to deliberate to produce an outcome that is favorable to all concerned sectors.

The wage board also has several considerations in deliberating the petition, which include the social economic conditions of the employers, she noted.

The labor union is optimistic the RTWPB will support the daily minimum wage increase petition even if results of the first round of deliberation have not been disclosed to the public yet.

If approved, the daily minimum wage in the region will become P395 for agricultural and non-agricultural workers.

The board discussions will be attended by the heads of the region's Department of Trade and Industry (DTI) and National Economic and Development Authority (Neda), two representatives from the Department of Labor and Employment (Dole), and two representatives from the private sector.

In a petition passed to RTWPB-10, the ALU-TUCP justified the requested increase as beneficial to the working population amid the increasing cost of standard of living.

"The P89 daily increase is essential if workers are to cope with the increasing prices of commodities and cost of living, if they are to meet the basic needs of their families, even if only partial, and if the country gives meaning and substance to the policy of equitable distribution of income and wealth. The increase, small as it is, has been overtaken by increases in power and water rates, in health and education costs, the prices of oil and its products, LPG, and basic goods and services," the petition read.

"Prices of goods and services in the following months are also expected to rise by at least 5 percent which would require an additional P21.42 adjustment in wages considering the increasing prices of goods and services especially power rates because of the current power shortage in Mindanao. Also, the daily take home pay of wage earners is lower due to legally mandated deductions such as SSS, PhilHealth and Pag-Ibig contributions and income tax," it added.

Wildon Barros, Kilusang Mayo Uno-northern Mindanao chairperson, told this paper that although they are pushing for the P125 minimum wage across the board since last year, they would also support ALU-TUCP's endeavor.

"We still want the RTWPB to say yes to this because it is for the benefit of our workers at the end of the day," Barros said by phone.

On May 15, 2013, the RTWPB-10 approved the latest P306 wage increase per day from P286 for the wage earners in northern Mindanao. - By Mario C. Manlupig Jr. SunStar