TUCP: SSS must level-up services with contribution hike

WITH the increase in monthly contributions now inevitable following the enactment of the new Social Services System (SSS) Law, the Trade Union Congress of the Philippines (TUCP) is expecting the SSS Board and management to provide a level-up, fast, efficient and quality service in exchange for members’ increase monthly payment

In a statement, TUCP President Raymond Mendoza said that if the SSS will not render improved quality service, actively paying members will be very disappointed and may be less supportive, resulting in a higher rate of delinquency among members.

It is necessary therefore that the SSS give back quality service so members will feel the increase in their monthly contribution is worth it, Mendoza said.

The TUCP has withheld its support for the increase in monthly contributions for the past four years.

“Before, we have been telling SSS management to undertake reforms in improving its collection targets rather than directly increasing members’ monthly payment by going after delinquent employers, reduce SSS bonuses and perks to SSS board and top execs, sell some assets, widen its investments, and minimize unnecessary operational costs to improve liquidity,” Mendoza said

“With the condonation program to delinquent employers on the way, we further see more income for SSS and looking at expanded membership who can avail of SSS benefits,” he added.

However, with the increase in monthly pension benefits and the forthcoming additional Expanded Maternity Leave benefits and unemployment insurance benefits, the TUCP can no longer hold back its support for the contribution hike without risking that the pension system’s reserve funds be compromised.

Thus, the TUCP now supports the increase in contributions beginning next month, Mendoza said. - The Daily Guardian

TUCP wants improved services with new SSS law

The group said workers expect improved SSS services as a result of the increase in monthly contribution.

MANILA, Philippines — The country’s largest labor group Trade Union Congress of the Philippines (TUCP) is expecting the Social Security System to improve its services with the implementation of the SSS Rationalization Act.

The group said workers expect improved SSS services as a result of the increase in monthly contribution.

“The implementation of the new SSS law will hopefully help improve the vast range of services the system provides to its members,” TUCP president Raymond Mendoza said.

Mendoza said they do not object to the planned 12 percent increase in the SSS monthly premium as part of the implementation of the new SSS law.

“The SSS this time has been doing fairly with its job to look for other means and resources to improve the system’s fund aside from increasing the monthly premium,” Mendoza said.

He said the TUCP is closely monitoring SSS’s efforts to go after employers who are delinquent in paying remittances and ensuring SSS investments are creating dividends.

Other labor groups, however, are wary over the possible negative effect of the new law.

Julius Cainglet of the Federation of Free Workers (FFW) expressed fear the newly signed law might result in uncontrolled increase in SSS premium rates paid by employees.

Cainglet said the law gives full authority to SSS to increase premium.

“It’s a bit dangerous as one of the built-in safeguards against unbridled increases in premium contributions was just removed,” he said.

He said the new law does not ensure genuine representation of workers at the SS Commission, the highest policy-making body of the SSS.

“This is the formula for destruction: giving more power to a commission whose members do not represent the interests of its main contributors, its members,” Cainglet said.

He said under such a setup, the SSS may eventually turn into a profit-driven business entity.

President Duterte earlier signed the SSS Rationalization Act to enable the agency to improve its investing capacity and generate more funds for members and pensioners.

The new law provides that the SS Commission may collect higher contributions even without the President’s approval.

To prevent such a problem, Cainglet said the drafting of the law’s implementing rules and regulations (IRR) should not be put in the hands of the SS Commission alone.

“What we want to see in the IRR is an assurance that any decision to increase premium payments should not be lodged with the SS Commission alone,” Cainglet said.

Militant group Kilusang Mayo Uno (KMU) condemned the signing of the SSS Rationalization Act, saying it will bring additional financial burden to workers.

KMU chair Elmer Labog said the law would reduce the take-home pay of workers already struggling to make ends meet because of rising cost of commodities due to inflation.

Instead of increasing premium, Labog said, SSS should just improve its collection.

“The rationalization act will just punish those who are already paying,” he said.

SSS coverage for vendors

The SSS rationalization act may cover market vendors, according to Sen. Grace Poe who urged local government units (LGU) to assist vendors amid privatization of public markets.

“They can enrol directly to the SSS as self-employed workers, a cooperative or through their barangay leaders. They can pay P5 or P10 every day. The coverage and benefits should include everyone and not only those who are employed in offices,” Poe said, referring to the vendors.

She urged the LGUs to help vendors acquire decent and affordable stalls when markets are turned into modern commercial centers. – Mayen Jaymalin With Cecille Suerte Felipe (The Philippine Star)

SSS urged to step up campaign against erring capitalists

SIX biggest labor organizations and alliances on Friday have strongly prodded the leadership of the Social Security System (SSS) to step up its campaign against capitalists who deliberately refuse to remit their monthly financial obligation collected from their employees.

Leody de Guzman, president of the Bukluran ng Manggagawang Pilipino (BMP), said the leaders and managers of the SSS must oblige all the employers to ensure that they will remit their employees’ monthly obligation and the corresponding employers’ share to the SSS.

Alan Tanjusay, spokesperson of the alliance of Trade Union Congress of the Philippines and Nagkaisa (TUCP-Nagkaisa), added that the SSS should conduct a regular inspection or reminder to all private firms covered to remit to the government’s social security agency the monthly payment of the employees and the corresponding employers’ share.

On September 21, The Manila Times reported that the SSS was able to collect about P1.6 billion from employers who refused to remit to the SSS the employers’ and employees’ monthly financial obligation for the past years.

The Times also reported that the SSS managed to send to jail at least 24 capitalists out of the 7,000 who intentionally violated the SSS Law.

For these accomplishments, Partido Manggagawa (PM) spokesman Wilson Fortaleza said the SSS leadership should step up its efforts so that more capitalists will be incarcerated for violating the agency’s law.

Fortaleza added that the 24 jailed capitalists were not enough since PM strongly believes that there are many businessmen still refuse to give the SSS the monthly payment of the employees together with the employers share.

Although the law stipulates that company employees should lodge a complaint against erring employers before the SSS, Tanjusay, who is also chairman of the Labor Party of the Philippines (LPP), said there is still a huge number of employers who deliberately ignore remitting to SSS the money they collect from their employees.

He also pointed out that the SSS would not act unless an employee will file a complaint against his or her employer who refused to remit the money they chopped from their employees.

Sonny Matula, president of the Federation of Free Workers (FFW), said the action against any erring employer should not only be done by the SSS but by the employees as well in order to win against the SSS Law violators.

Matula stressed that the employees’ decision against their employer is an important act to help SSS do its obligation.

But Matula, who is also a lawyer, should be reminded that the mindset of Filipino workers is filled with fear. They are afraid to file a complaint against their employers who violated even a series of non-remittance to the SSS amounting to two years.

A good example was a call center employee who failed to get her financial incentive from the SSS when she gave birth to her third child two months ago, because her employer did not remit the money they collected.

The employee was then advised to lodge a complaint so that legal actions could be done against the SSS Law violator, but she later on refused out of fear that she might be fired from the company. - by NELSON S. BADILLA, REPORTER / The Manila Times

Five labor groups: Pass 2,000 pension hike now

FIVE of the biggest labor organizations in the Philippines on Thursday strongly urged the Senate to immediately pass the proposed law requiring the Social Security System (SSS) to increase the monthly pension of about 1.9 million retired workers by P2,000.

The call of Trade Union Congress of the Philippines-Nagkaisa (TUCP), Nagkaisa, Partido Manggagawa (PM), Federation of Free Workers (FFW), and Labor Party of the Philippines (LLP) was issued for the Senate to hasten the passage of the House Bill No. 5842 that was adopted and sponsored by Sen. Cynthia Villar on August 26.

Alan Tanjusay, spokesman of TUCP—Nagkaisa, said the approval must be immediate since the 1.9 million SSS pensioners badly needed the money to augment their budget for their monthly expenses on medicines, electricity, water, and so on.

Renato Magtubo, former congressman and now chairman of PM, said his group is strongly calling the attention of the senators to prioritize the proposed P2,000 increase on the SSS monthly pension since “there is no dramatic increase on the amount of pension that SSS pensioners have been receiving for a long period of time.”

Magtubo stressed that Bayan Muna party-list Rep. Neri Colmenares’ proposal was “timely [despite] the amount was small [because it] will surely help retirees/pensioners in their needs most specially their medical needs.”

Sonny Matula, a lawyer who chairs FFW, likewise pointed out that the SSS pensioners “badly needed” the P2,000 hike.

Tanjusay noted that even Nagkaisa (coalition of 90 percent of labor unions in the country) and LLP are in full support of the proposed SSS pension increase because it would benefit around 1.9 million retired workers from private firms.

On August 26, the Senate Committee on Government Corporations and Public Enterprises chaired by Sen. Villar cited HB 5842 in her sponsorship speech.

In the same day, Villar made the sponsorship on the Report No. 213 of the Committee on Government Corporations and Public Enterprises.

As she made the sponsorship, Villar said, “Kasi sa tinatanggap na monthly pension ng ating mga retiradong manggagawa na minimum of between P1,200 and P2,400, mabibilang sila sa mga Pilipinong living below the poverty line. In fact, kahit na dagdagan pa ang kanilang monthly pension ng P2,000 ayon sa ating rekomendasyon, hindi pa rin nila malalampasan ang poverty threshold. As such, they will still be labeled as poor… Ibig sabihin, matapos magtrabaho ang mga pribadong manggagawa ng 20 taon, kapag sila ay retirado na, marami sa kanila, na aasa na lang sa monthly pension nila, ay mamumuhay below the poverty line. Medyo nakakalungkot naman ang hahantungan ng mga empleyado sa ating bansa [The minimum monthly pension received by retired employees is between P1,200 and P2,400, and they would be classified as Filipinos living below the poverty line. In fact, even if we add P2,000 on their monthly pension, based on our recommendation, they still would be in the lines of poverty threshold. As such, they will still be labeled as poor… This means that after working for 20 years, when they retire, most of them would just depend on their monthly pension and they would be living below the poverty line. It’s saddening that this is the fate of retired workers in our country.”

After August 26, Villar’s committee has yet to make a follow-up action on the proposed law.

The proposed law specifically intends to amend Section 12 of Republic Act No. 1161, which states that workers who have 10 years of SSS monthly contribution will receive P1,200 monthly pension and those who have 20 years of SSS monthly contribution will get P2,400 monthly pension.

Unfortunately, reports have been floating to the media that the government agency could not afford to finance the P49 billion budget for the increase from year 2016 to 2042.

This led Rep. Colmenares to blow his top last week saying “the SSS [must] stop scaring the Senate from the P2,000 pension increase by claiming that Social Security System (SSS) has no funds for the increase.”

“SSS should stop trying to delude the people and the Senate that it has no funds for the P2,000 pension increase because this is not true. The SSS Board is tryng to sabotage the passage of the P2,000 pension increase, even if it has actually admitted several times that it has the funds for the pension increase. The increase will only shorten its fund life to 2029 instead of the current 2042,” Colmenares added. - by NELSON S. BADILLA REPORTER / The Manila Times

Bill lowering retirement age of mining workers gets union support

LABOR UNIONS in Philex Mining Corp. have supported a proposed law that will further lower mining workers’ retirement age by five years, citing health hazards that their members encounter everyday.
Both surface and underground workers should be allowed to retire at 50, Engineer Renerio C. Lardizabal, Jr., president of the Philex Mines Supervisory Employees’ Union (PMSEU), told lawmakers at a Senate hearing last week.

Although the proposed retirement age for mining workers has already been set at 50 by a 1998 law that revised the country’s Labor Code, its implementation was suspended after the Social Security System (SSS) refused to comply, saying that the law did not specifically amend Republic Act No. 1161 or the Social Security Law. Since then, all parties concerned agreed to a middle ground of 55 years old.

“The exposure of underground and surface workers are the same with regard to the hazardous conditions -- gas fumes, dust and others that would affect their health. So we are proposing that, through the Honorable Congressman of Benguet, we can lower it to 50 so workers will still be fairly young when they leave Philex,” Mr. Lardizabal said.

Mr. Lardizabal made these remarks last week at the Senate, which is hearing Senate Bill Nos. 1370 and 1062. Both filed by Senator Jose E. Estrada, the bills, which remain at the committee level since 2013, aim to lower the compulsory retirement age of all mine workers to 50 years old by amending the Labor Code.

At the House of Representatives, a similar bill filed by Benguet Lone District Rep. Ronald M. Cosalan -- House Bill No. 4271 -- was approved May last year.

Robert Carajay, a member of the Philex Rank and File Employees-Union Associated Labor Unions, expressed support for Mr. Lardizabal’s position.

“I support the statement of the president of the supervisory union to lower the retirement age. The workers don’t really reach the age of 60 years old, they die earlier than that,” Mr. Carajay said.

“Our experience is that the workers who retire at the age of 60 years old, the statistics say that they die after three years,” Jose Maria S. Batino, deputy executive director of Occupational Safety and Health Center of the Department of Labor and Employment said.

For his part, Ronald R.S. Recidoro, vice-president for Legal & Policy of the Chamber of Mines of the Philippines (CoMP) said it is studying the effect of the measures on the industry.

“Next week we will follow up on the results of that so we can come out with a position,” Mr. Recidoro said.

Philex Mining Corp. is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investment Corp. and the Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- Alden M. Monzon BusinessWorld

DoJ affirms bill on unemployment benefits

THE DEPARTMENT of Justice (DoJ) has backed a House bill seeking to expand benefits under the Social Security System (SSS) for employees separated from the service.

House Bill No. 4668 -- “An Act Expanding The Benefits of the Social Security System So As To Provide for the Unemployment Benefits Thereby Amending For This Purpose Republic Act No. 8282, as Amended, Otherwise Known as the Social Security Law of 1997” -- is authored by Party-list Rep. Raymond Democrito C. Mendoza (Trade Union Congress of the Philippines).

In a legal opinion to North Cotabato Rep. Jesus N. Sacdalan (1st district), chairman of the House committee on government enterprises and privatization, Justice Secretary Leila M. de Lima said her department “recognizes the importance of this bill and we express our support thereto.”

Ms. de Lima also emphasized in her opinion that SSS funds should be sufficient to fulfill its obligation to its members.

The bill seeks to provide unemployment benefits in the form of monthly cash payments to an employee who is terminated, or “involuntarily unemployed” as the bill says. The said benefits are equivalent to the employee’s minimum wage.

“It is imperative upon the state to ensure that our work force does not only have meaningful and satisfying jobs, but can also address employment or income security during unfortunate times when they lose their jobs through no fault of their own,” Mr. Mendoza said.

Ms. de Lima said the objective of the proposed bill -- to give temporary economic support to employees who were separated from their employment while looking for new opportunities to work -- “appears to be the same intention” in providing workers with separation pay under the Labor Code. -- Reden D. Madrid Bworldonline

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

Bill creating a magna carta for workers in the informal economy

A magna carta for workers in the informal economy who were described as one of the "most neglected sector of the society" has been filed at the House of Representatives.

Rep. Raymond Democrito Mendoza (Party-list, TUCP) authored House Bill 6182 to give full protection by establishing an institutional mechanism for the informal sector.

"The informal sectors are more easily found in exploitative conditions. They are excluded from the protective scope of laws and regulations," Mendoza said.

Mendoza said the informal sector could be found in every sector of the economy including commerce, agriculture, construction, transportation, manufacturing and services.

The bill identifies the informal sector as the ordinary farmers, fisherfolk, home-based workers, industrial home-based workers, self-employed, vendors, drivers, operators of jeepney and tricycles, domestic helpers, small scale miners, workers of barangay micro business enterprises, waste pickers and recyclers, on-call workers, volunteer workers, unpaid family workers and seasonally hired workers.

Data from the National Statistics Office (NSO) shows the sector accounts for 99.2 percent of all establishments in the country, with a population of 16 million in 2005.

Mendoza said informal employment is often casual, irregular or seasonal implying frequent changes of workplaces and employers.

Under the bill, Mendoza said the informal workers will have a right to living wages, equal opportunities for promotion, safe and healthy working conditions, maternity protection and self-organization.

The bill mandates the state to extend social security protection under the Social Security System (SSS) to all workers and their beneficiaries against hazards of disability, sickness, maternity, old age, death, unemployment and other contingencies resulting in loss of income or financial burden.

Volunteer workers of government instrumentalities shall be covered by the Government Service Insurance System (GSIS) and be entitled to at least a minimum package of customized products, services and benefits.

The bill provides that all working arrangements entered into by workers in the informal economy shall be in accordance with the minimum applicable labor and social standards.

In cases wherein minors are contracted with, the negotiated contract shall be signed in his or her behalf by their parents or guardians.

The bill allows the employment of children 15 to 17 years of age provided that parental or legal guardian consent can be presented by any representative of the local government unit or a duly elected barangay official.

The bill prohibits the following: forced night work, bonded labor, labor-only contracting, recruitment and finder’s fees as well as hazardous work and conditions.

The bill provides that the normal hours of work shall be set at 8 hours per day, exclusive of one hour breaks each for breakfast, lunch and dinner. They are also entitled to a P1,000 clothing allowance.

The bill will create the Informal Economy Development Authority (IEDA), the primary agency that will act as a one-stop shop to facilitate and coordinate national efforts to promote the informal economy's viability and growth. It shall also perform as a regulatory and quasi-judicial body.

The IEDA shall have a chairman with the rank of cabinet secretary. Its members will be the secretaries of the Departments of Labor and Employment, Trade and Industry, Agriculture, Agrarian Reform, Social Welfare and Development, Health, Interior and Local Government, Finance, the heads of the National Economic and Development Authority, National Anti-Poverty Commission, Technical Education and Skills Development Authority, Development Bank of the Philippines, Land Bank of the Philippines, Social Security System, Philhealth, National Commission on the Role of Filipino Women and the Housing and Urban Development Coordinating Council.

Likewise, the bill shall also create the Workers in the Informal Economy Local Development Office (WIELDO) in every province. It will prepare an overall development plan and work program to address the needs of the workers in the informal economy in the region, province, city, municipal and barangay levels.

Under the bill, 10 percent of the annual national budget shall be appropriated for programs and services for workers in the informal economy to be implemented by the proposed Informal Economy Development Authority (IEDA) and Workers in the Informal Economy and Local Development Office (WIELDO).

The bill imposes one month to six months imprisonment and a fine of P20,000 to violators. - Jazmin S. Camero, MRS-PRIB