TUCP urges for massive job generation in the President's legacy projects to ease the COVID-19 triggered unemployment and poverty

On the President's 5th SONA

The Trade Union Congress of the Philippines (TUCP) urges for massive job generation to be included in the President’s State of the Nation Address (SONA) on Monday, July 27, 2020, to ease the COVID-19 triggered unemployment and poverty citing the President’s legacy projects, particularly in the P35.91 billion 102-km Mindanao Railway Project (MRP), Tagum-Davao-Digos segment as having great potential for employment and development.

“The Mindanao Railway Project of the President, although a single-track diesel-run railway, has great potential to generate the much-needed jobs. It will benefit not just the workers in Tagum-Davao-Digos areas but from as far as BARMM, Regions X, XII and CARAGA if agri-industrial hubs will be developed and connected to the planned eight (8) stations which are in Tagum; Carmen; Panabo; Mundiang; Davao Terminal; Toril; Sta Cruz; and Digos,” TUCP Partylist and TUCP President Raymond Democrito C. Mendoza pointed out.

The Department of Transportation (DOTr) had earlier reported that the MRP’s Tagum-Davao-Digos segment’s design and construction will start in third quarter of this year and are expected to be completed by end of 2021.

“We do not need to reinvent the wheel or embark on new grand plans to create jobs, we just have to ensure that the ‘Build, Build, Build’ and the legacy projects of the President would be for the development and industrialization in the countryside to spur employment, and not just mere rail tracks, widened and asphalted roads,” Mendoza explained. “The President’s SONA should direct the Department of Trade and Industry (DTI), Department of Science and Technology (DOST), DOLE, DOTr and Department of Public Works and Highways (DPWH) to ensure job creation,” he suggested.

The TUCP earlier projected 5 million to 10 million unemployed workers due to the pandemic, and 3 to 4 million in floating status under a “no work, no pay” arrangement, while the Philippine Statistics Authority (PSA) reported a 17.7 percent unemployment rate which accounts for 7.3 million unemployed in the workforce in the second quarter of 2020, nearly a four-time increase from the 5.1 percent unemployment rate in the same quarter of 2019.

The PSA also reported double-digit unemployment rates in all regions, the highest was in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at 29.8 percent. The rest of the regions in Mindanao island: Region IX registered an unemployment rate of 23.9 percent, Region X at 11.1 percent, Region XI at 17.9 percent, Region XII at 21.2 percent and CARAGA at 12.3 percent.

The SWS survey conducted in May 2020 noted that eighty-three percent of Filipinos believe that their quality of life has worsened in the last 12 months. The survey has 294 respondents from Metro Manila, 1,645 from Balance Luzon, 792 from Visayas, and 1,279 from Mindanao. While a separate SWS survey in the same period showed that 16.7 percent or an estimated 4.2 million Filipino families experienced involuntary hunger at least once for the past three months.

"We reiterate our call to the Government on the urgency to respond to the magnitude of the displacement of workers. Indeed, some companies are operating but it will get worse before it will get better. Companies are operating in half capacities to finish the pre-pandemic job orders and there are no new orders coming in as the economies of our markets abroad are in recession. Closures will come in the fourth quarter of the year with no assurance of rebound in 2021. There is no assurance of foreign remittance as our OFWs are coming home and those who stayed overseas have no jobs while our seafarers have become quarantine costly and unable to board the ships on time due to bottlenecks in the green lanes. It should not be ‘business-as-usual’ mode, we need to have a massive job creation program or a Philippine Agri-Industrial Development Program to stimulate the economy, and not rely on labor export or foreign investments,” TUCP Vice President Luis Corral said.

He also pointed out that this is President Duterte’s golden opportunity to “BUILD BACK BETTER” using the country’s “AAA-minus credit rating” to fund a multi-trillion-peso economic stimulus package so that the credit rating is felt by the Filipino people.

- TUCP Labor Center

The Trade Union Congress of the Philippines (TUCP) expresses its grave concern on the passing of HB 6875

TUCP fears that the provisions in the proposed law would be used to violate the worker's exercise of freedom of association. Furthermore, this organization fears that the proposed law may be used to quell the activities of legitimate trade union and labor organizations.

TUCP President and Congressman Raymond Democrito Mendoza believes that dissent must be heard and not silenced, and that a worker's freedom of expression and association must be honored at all times. Thus, the honorable representative voted against HB 6875.

𝙋𝙖𝙧𝙖 𝙨𝙖 𝙢𝙖𝙣𝙜𝙜𝙖𝙜𝙖𝙬𝙖𝙣𝙜 𝙋𝙞𝙡𝙞𝙥𝙞𝙣𝙤!

- TUCP Labor Center

TUCP expresses its concern and displeasure on the closure of ABS CBN: 11,000 workers impacted by closure

The Trade Union Congress of the Philippines (TUCP) expresses its grave concern and its deep displeasure on the loss of jobs and negative impact on the fight against COVID-19 that the Cease and Desist Order of the National Telecommunications closing down ABS-CBN will have. With a single stroke of the pen, an unfeeling NTC has rendered 11,000 workers jobless, increasing the vulnerability of these workers and their families to both the ravages of COVID-19 and the economic recession. Truth and the ABS-CBN workers are the first victims of the NTC order.

The second victims of NTC will be the nation as a whole. Mean-spirited and unwise, the NTC Order will effectively raise COVID-19 incidence as our poorest people, without the distraction of their favorite tv shows inside their super-heated, locked down homes, start congregating outside their crowded communities without physical distancing. Further, without recourse to their trusted and credible news sources, people will be left adrift in the miasma and mess of fake news and myths that populates other media.

At this time when the nation's survival is at stake, at this point when real time information is crucial in battling the COVID-19 pandemic, and at this moment when national solidarity is forged through media and broadcast networks so our nation may heal as one, NTC by-passed the prerogative of Congress, as the representatives of the people, to properly rule on the fate of the ABS-CBN franchise renewal during an Enhanced Community Quarantine (ECQ).

Without legal basis for issuing the Order, NTC should have taken the higher moral ground by issuing a provisional authority to operate thereby allowing a comprehensive Congressional deliberation on the issues at hand.

Instead, NTC jumped the gun by foolishly putting its foot forward to derail the democratic process and in the process, hijacking a Constitutional mandate to Congress emanating from the people.

TUCP demands that the NTC provide its legal basis for issuing the Cease and Desist Order notwithstanding a Congressional consensus that a temporary permit must be issued to ABS-CBN while it works out its franchise renewal from Congress.

As the largest national trade union center, we remind NTC that it is not just shutting off a network, it is treacherously shutting off the hopes and aspirations of its workers and their families. It is treacherously shutting off all hopes and aspirations of its 11,000 workers and their families forged through hard work and perseverance to improve their lives through an honest living.

TUCP joins the Filipino nation in rallying behind the cause of the viewers of ABS CBN with their daily involvement and even commitment to ABS-CBN news and entertainment programs that soothes and makes it easier to bear with the hardships of their daily lives. The ordinary Filipino who voted for President Duterte could not have been more resilient, hopeful, creative and more hardworking if there was no ABS-CBN to accompany them in their daily struggles.

The TUCP, along with our member-federations and member-workers are one with ABS-CBN and its workers in this fight. This too shall pass. - TUCP Labor Center


Atty. Raymond Democrito C. Mendoza
President, Trade Union Congress of the Philippines (TUCP)
Representative, House of Representatives, TUCP Partylist

Dismissing Usec Maglunsod is a great loss to the DOLE; he’s no NPA

Usec Maglungsod performs his mandate well in the DOLE. He is no NPA (non-performing asset).

In his short stint as undersecretary of labor for industrial relations, he has bridge the “gap of trust” between organized labor and the department by personally acting on complaints and facing mass actions of workers at the DOLE office in Intramuros. He has also pain stakingly conduct dialogues between employers and organized labor relaying to them the department’s effort on enforcing laws and regulations pertaining to labor contracting with the end in view of respecting the rights of both the workers and employers.

USec Joemag, as many in organized labor fondly called him, is a great loss to the department.

President Duterte has made a major mistake in dismissing the services of Usec Joemag at the DOLE only to heed the advice of the military and anti-worker elements of his administration.

Duterte certifies as urgent anti-contractualization bill

Organized labor finally got a big push in its quest to end Contractualization.

President Rodrigo Duterte has certified as urgent Senate Bill 1826 that seeks to end Contractualization and strengthen security of tenure of workers.

“NAGKAISA welcomes the certification of President Duterte,” said Atty. Sonny Matula, chairperson of the Nagkaisa! Labor Coalition.

“We are near the goal. It’s closer than it has ever been, but we still have some work to do. The Senate has been given a directive to craft a law that will end Contractualization. We must see this through and ensure that the proposed measure shall address the weaknesses of existing laws on security of tenure,” Matula said.

Nagkaisa has consistently campaigned against Contractualization since its inception in 2012.

“Labor’s persistence has so far paid off. Our relentless efforts have shown dividends. Now is not the time to rest. After more than two years, the Duterte administration has finally made a big step towards the fulfillment of a campaign promise,” said Matula, who is also the president of the Federation of Free Workers (FFW).

“We shall mount more pressure within the halls of Congress and the parliament of the streets,” said Matula.

Once passed by the Senate, a bicameral conference will be convened by both chambers of Congress to harmonize the provisions of the separate bills.

“With the election season fast approaching, the Senate and House of Representatives, voting separately, is under pressure to ratify the harmonized version and submit the law for the president’s enactment,” Matula said.

Supreme Court final ruling settles TUCP leadership row

The Supreme Court (SC) on June 20, 2018 issued a resolution denying with FINALITY the motion for reconsideration filed by the group of the former and late Sen. Ernesto Herrera on the issue of determining the legitimate member organizations of the Trade Union Congress of the Philippines (TUCP). The highest court’s final ruling finally settled the issue of legal and legitimate representation and leadership of the labor center, particularly the legality and legitimacy of convening the TUCP General Council and the hodling of TUCP Convention and election of officers that was held on April 2, 2016 in TUCP Headquarters in Diliman, Quezon City, where all the 27 member-organizations were invited to participate pursuant to Article VI of the TUCP Constitution and By-Laws.

During the said Convention, the 17 member-organizations/federations present and in good standing constituting a quorum elected Rep. Raymond Mendoza from the Associated Labor Unions (ALU) as President; Atty. Arnel Dolendo from the Philippine Trade and General Workers Organization (PTGWO) as General Secretary; and Esperanza Ocampo from the Philippine Government Employees Association (PGEA) as Treasurer. The delegates also elected the other members of the TUCP Executive Board representing other TUCP federations with a 5-year term of office until 2021.

The conduct of the TUCP Convention and Regular Election of Officers, in compliance with the orders and resolutions of the Court of Appeals, the Supreme Court, and the Bureau of Labor Relations, put to rest the issue on TUCP leadership along with the demise of its key leaders – Atty. Democrito Mendoza of ALU, former Sen. Ernesto F. Herrera of AMAPO, Victorino F. Balais of PTGWO and Zoilo dela Cruz of NACUSIP.

The Convention and election of the new officers of TUCP were held in pursuant to the Writ of Execution issued by the Bureau of Labor Relations (BLR) on 11 August 2015 implementing the Decision of the Court of Appeals dated 07 October 2013, as amended by its Resolution issued on 16 June 2014, and as affirmed by the Supreme Court in its Resolutions dated 27 August 2014 and 09 February 2015. The Writ of Execution issued by the BLR on 11 August 2015 with respect to the leadership issue of the TUCP is deemed complied with.

The most recent decision of the Supreme Court has the practical effect of affirming and sustaining the legitimacy of the 02 April 2016 8th TUCP Convention and Regular Election of Officers which resulted to election of current leadership under President Raymond Mendoza.

With the final decision of the Supreme Court, the TUCP could now be able to fully revitalize, consolidate and further expand its membership with an open-door policy to the other 10 legitimate organizations of the TUCP that went with the group of Sen. Herrera during the leadership dispute.

The TUCP under the leadership of Rep. Mendoza can now fully revive its participation in the International Trade Union Confederation (ITUC) and re-connect wih other national and international labor and fraternal organizations. Also, the organization can now proceed full steam ahead to reconstituting its working committees and functional deparments to develop and offer more programs and services to its members in the manufacturing, services, transportation, and agriculture sectors nationwide including its OFW members both land and sea-based. It can also now fully develop its properties and facilities without legal question or any impediment which will greatly help in strengthening the operations of the TUCP for the benefit of workers, their families and communities.

The TUCP leadership is very grateful to all its allies and supporters in the government, in the media, and in the Nagkaisa Labor Coalition who believed in the legitimate leadership of the TUCP under Rep. Mendoza. The labor center commits to continue its work to serving the Filipino workers in the country and overseas. - TUCP Labor Center Statement

Nagkaisa! condemns violence against workers across the country

Nagkaisa! Labor Coalition is deeply concerned over the spate of violence that befell workers in separate incidents across the country.

“We condemn in the strongest terms possible, the attempted murder of a trade union leader in Cebu City and the violent dispersal of striking workers of food giant NutriAsia and their supporters, in Marilao, Bulacan," Atty. Sonny Matula, chairperson of Nagkaisa! said.

The display of violence happened a few hours apart yesterday.

“There was an apparent attempt on the life of Jessielou Cadungog, labor leader of ALU-TUCP, vice chairman of the Oriental Port and Allied Services Corporation (OPASCOR) and it involved the police," Matula said.

The Philippine National Police (PNP) in Cebu are owning up to the incident as a legitimate police operation.

Meanwhile, in Marilao, Bulacan, the picket of protesting workers and their supporters was violently dispersed by operatives of PNP Bulacan and security personnel of giant food manufacturer NutriAsia.

“A peaceful concerted action demanding the recognition of rights of workers such as what was being done by workers of NutriAsia, should never ever merit any and all kinds of violence, especially those perpetrated by the police and private security personnel," Matula said.

Based on workers' accounts, some 100 security forces, including 30 police officers violently dispersed the picket line as protesters were holding a religious ecumenical service.

At least 19 were arrested and scores arrested as many of the protesters scrambled for safety amid the chaos.

Back in Cebu, the gunman who was killed in the encounter by Cadungog's aide was identified as PO2 Eugene Alcain Calumba. The accomplice who was taken into custody by the PNP was Michael Banua.

“Now, the PNP is trying to portray the assassination attempt on Mr. Cadungog as a legitimate police operation identifying him as a 'person-of-interest' involved in shabu," Michael Mendoza, president of ALU-TUCP, a Nagkaisa member said.

“We stand by Mr. Cadungog and condemn this sordid attempt to justify and cover-up for what is clear police involvement," said Mendoza.

Meanwhile, police in Bulacan are claiming that some of the arrested protesters had guns and drugs with them.

“It is becoming a sad refrain. The campaign against drugs is being used by the police as a flimsy excuse to either justify the use of violence or use it as an escape goat, when harassing workers and citizens who are exercising their legitimate trade union and human rights," Matula said.

“We are calling on the authorities to conduct a thorough and objective investigation of the twin incidents of violence against workers that occurred yesterday. The police officers and their superiors who will be proven to have done wrongdoing should be made accountable. The culture of impunity must stop," Matula said.

Labor group wary of RTWPB-XI motu proprio wage review

The labor coalition NAGKAISA-Davao cautions workers on the Regional Tripartite Wages and Productivity Board-Region XI’s initiative to review and possibly raise the region’s minimum wage. “As in the past wage orders, the RTWPB-XI’s evaluation is most likely to end up giving loose change to workers,” said Sofriano “Ka Ondo” Mataro, spokesperson of Nagkaisa-Davao and regional head of ALU-TUCP.

TUCP has petitioned the regional wage board for a P104.00 across-the-board increase but the latter said that it has already initiated a motu proprio review of the existing minimum wage in the region in its meeting on January 17, 2018.

“We doubt that the wage review of RTWPB-XI is not prompted by DOLE Secretary Bello, who seems to be working in cahoots with the employers on the issue of contractualization. If not with TUCP’s petition in late March, we would not know that the regional wage board has taken the initiative to take a look at workers’ wages since January”, stated Joel Bañas, spokesperson and Chairperson of SENTRO Davao.

He further explained, “It’s already three months now and no labor group have been consulted and no public hearings were called to discuss the matter. If the regional wage board is talking to some groups, it is not the workers but the employers. Is the right of workers to be heard doesn’t matter nowadays?”

“Agravante said that the wage board has undertaken studies on the region’s economic conditions including the effects of the TRAIN Law, where are the results of these much-vaunted studies? What are its findings?” asks Remy Torres, spokesperson of Partido ng Manggagawa (PM).

Remy Torres is referring to Raymundo Agravante, chairperson of RTWPB-XI and the regional director of the Department of Labor and Employment-Region XI.

“We need to raise workmen’s wages. The P104.00 petition of TUCP is not even enough to recover the lost purchasing power of the regional wage which is P132.70”, asserted Ka Ondo, spokesperson of the group and a convenor of Nagkaisa-Davao.

According to the website of NWPC (National Wages and Productivity Commission), the real value of the region’s minmum wage of P340.00 is a measly P207.30. ” And these figures are as of February 9, 2018. The impact of the excise and value-added taxes under the TRAIN Law is still not factored in”, he added.

The labor coalition alleged that workers are staggering from the effects of the TRAIN Law which inflated prices of basic commodities. The Philippine Statistics Authority confirmed this in an announcement recently that inflation in March 2018 surged to 4.3%.

The law lists ten criteria on which the wage board would base its decision in fixing wages. Among them were the rise in the cost of living, the purchasing power of the peso and workers’ demand for a raise. But Joel Bañas of SENTRO Davao claims, “Since its creation thirty years ago, the regional wage boards has only one consideration on issuing wage orders, which is the employers’ capacity to pay, forsaking the workers’ capacity to buy.”

Labor hesitant about Palace Meeting sans knowledge of final EO version

“We are not sure if we will go to the meeting with the President as we don’t know which version of the Executive Order (EO) Labor Secretary Silvestre Bello III is once again peddling,” Nagkaisa Labor Coalition said in a hastily called press conference following reports of a much delayed meeting with President Rodrigo Duterte happening in mid-April.

President Duterte, in a meeting with labor leaders on February 27, promised that he and his legal team will look into the workers’ draft EO submitted jointly by Nagkaisa and Kilusang Mayo Uno with the support of the National Anti-Poverty Commission. He promised to sign the issuance by March 15, to no avail.

“The truth is, the Secretary has been obstructing our efforts these past few years. He has been misleading the president and has been fooling the public by twisting labor’s position and making it appear we are unreasonable,” Nagkaisa said.

“The workers’ draft has moved from total prohibition of contractualization to a framework of prohibition of contractualization that would allow certain exemptions for contracting out of work, but subject to the decision of the National Tripartite Industrial Peace Council.” Nagkaisa added.

“We abhor the abuse and exploitation of workers through contractualization as it has become the convenient excuse of unscrupulous employers and manpower agencies and pseudo cooperatives to pay low wages, disregard social protection, bust unions and fire workers at will. We believed the President share these abhorrence with irresponsible employers,” Nagkaisa added.

Nagkaisa calls on government to decide where its policy on addressing contractualization stands. “Is it for more profits to employers at the expense of workers’ rights and welfare; or adhering to state guarantees of providing full protection to workers’ rights and welfare that would bring about sustainable growth to the economy?”

“Secretary Bello shamelessly foisted that labor is calling for the total prohibition of contractualization and deliberately misled the public and the President that workers are hardlining and demanding the impossible. He obstructed and derailed the democratic processing of an EO,” Nagkaisa added.

“He has acted beyond the pale and has shown to what depths he will unconscionably betray his sworn trust and the public interest. He must now disclose what this purported April 16 EO contains. It is something we have never seen,” said Nagkaisa.

Nagkaisa only learned about a supposed new round of meetings in Malacañang via news reports as no official invitations and meeting agenda have been received by any labor group.

SUPREME COURT ISSUED RULING ON TUCP LEADERSHIP ROW

The Supreme Court (SC), it Resolution dated January 24, 2018, dismissed the petition filed by the camp of former Senator Herrera against the decisions of the Bureau of Labor Relations (BLR), the Department of Labor and Employment (DOLE) Secretary and the Court of Appeals. The high court said the petition was filed using a wrong legal procedure.

On March 31, 2016, the BLR issued an Order determining the 27 bonafide and legitimate member-organizations of the TUCP. That BLR Order was assailed by the “Herrera Group” and they made an appeal to the Office of the Secretary (OSEC) of the Department of Labor and Employment (DOLE).

Following the March 31, 2016 BLR determination of member-organizations/federations, the TUCP held its 8th Convention and Regular Election of Officers on 02 April 2016, at the TUCP Headquarters in Diliman, Quezon City, Philippines, pursuant to Article VI of the TUCP Constitution and By-Laws. All the 27 member-organizations were invited to participate in the Convention and the election of new officers. The said convention elected Rep. Raymond Mendoza from the Associated Labor Unions (ALU) as President; Philippine Trade and General Workers Organization (PTGWO) Atty. Arnel Dolendo as General Secretary; and Philippine Government Employees Association (PGEA) Esperanza Ocampo as Treasurer.

On September 28, 2016, the March 31, 2016 Order of the BLR was affirmed by the new Secretary of Labor and Employment Silvestre H. Bello III and the subsequent Motion for Reconsideration filed by former Labor Secretary Ruben D. Torres, who represented himself as the new TUCP President was denied on December 13, 2016.

The February 21, 2017 Petition for Certiorari filed by former Labor Secretary Torres and Atty. Capoquian with the Court of Appeals (CA) assailing the rulings of the current Secretary of Labor and Employment, Silvestre H. Bello III was dismissed by the Thirteenth Division of the Court of Appeals on August 11, 2017. The CA sustained the Resolutions of the BLR and DOLE, affirming “that there are only 27 labor organizations as legitimate TUCP members”. On September 20, 2017, the camp of Mr. Torres filed a petition for certiorari with the Supreme Court to reverse and set-aside the Court of Appeals decision. After almost four months, the Supreme Court resolved to dismiss the said petition due to technicality.

The TUCP is now just waiting for the Certificate of Finality of the Supreme Court decision that will be issued within 30 days beginning the date of issuance of the court resolution. The TUCP leadership under Rep. Raymond Mendoza hopes that the leadership dispute within the labor center will be finally settled soon in favor of the majority of its legitimate members. TUCP PRESS RELEASE March 22, 2018

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

NAGKAISA labor coalition calls on creation of a tripartite labor laws compliance inspection task force

PNOY, nga-nga sa mga manggagawang biktima ng sunog - Ensure health and safety of workers

The lives and the scathing injury of KENTEX workers are the heavy price for the complete breakdown of government’s labor laws enforcement and for the employers’ patent disregard to the mandatory laws on wages, social protection benefits and the statutory basic workplace safety guidelines.

The KENTEX factory workers’ deaths depict the abominable culture of indifference among many public servants and profit-oriented employers to enforce existing guidelines that uphold workers’ basic rights and well-being.

Therefore, we, the undersigned convenors of the NAGKAISA Labor Coalition, collectively call on Labor Secretary Baldoz to establish a tripartite "Task Force Valenzuela" (TFV) to undertake a surprise sweep and unannounced inspection of factories and plants in the City of Valenzuela to crack down on sweatshops.

In the light of the tragedy that befell our fellow workers in KENTEX, we believe that it now becomes imperative to verify employer compliance with all existing labor laws and safety standards, fire and building structure standards and to determine compliance with all other city requirements for the issuance of business permits and operational licenses.

Justice must now not just be for the KENTEX dead and their families but also for the countless workers nationwide who labor under the same pakyawan system or through unregistered and unregulated labor manning agencies, to be deployed without any statutory benefits, least of all minimum wages, into firetraps where their lives are sacrificed on the altar of profits. Disposable lives and in the case of the KENTEX workers, thrown away.

We strongly believe that the immoral and illegal activities of the KENTEX owners are actually widespread in Valenzuela, and the inspections should begin in the very factory neighborhood where the fire occurred and with those firms also serviced by the unregistered manning agency. The inspections should also cover those firms that undertook voluntary self-assessments of their labor standard compliance. It is never the best way to enforce labor or safety standards by relying on the mere "say-so" of a very self-interested employer and factory owner.

This proposed crackdown in Valenzuela will have national resonance and will hopefully, by making an example of those who will be caught, ensure that labor standard compliance will be honored more in the practice, rather than in its breach.

We urge the DOLE to seize the historical opportunity to render justice not just for the KENTEX workers but to finally break the widespread culture and practice of corporate irresponsibility that made the loss of the workers lives not just immoral but evil and criminal.

Extra-judicial killings, other human rights violations persist under ‘tuwid na daan’ – Nagkaisa!

A culture of impunity translated into extra-judicial killings (EJK) and other forms of human rights violations against leaders and labor organizers continue under the ‘tuwid na daan’, a coalition of major trade unions and labor organizations in the country, Nagkaisa!, said in a statement on the eve of the celebration of International Human Rights Day.

 

Since 2011, Nagkaisa! is engaged in dialogues with the Aquino administration on several labor issues, including some 62 unsolved cases of EJKs involving labor.

 

Nagkaisa! said the most recent in the cases of unsolved EJKs was the  murder of a labor organizer in Negros Occidental.  Rolando Pango, a full time organizer of Partido Manggagawa (PM) was gunned down in Binalbagan town in Negros Occidental on Novermber 29, 2014.

 

“Prior to his death, Pango was deeply involved in both the agrarian and labor disputes in Hacienda Salud, a 135-hectare sugar plantation in Barangay Rumirang, Isabela leased and managed by Manuel Lamata,” said PM Chair Renato Magtubo.

 

Pango was instrumental in organizing the plantation workers in Hacienda Salud who in June applied the land under CARPER coverage.  Salud workers has also filed of a case of illegal dismissal before the National Labor Relations Commission (NLRC) against Lamata for unlawful termination 41 workers. 

 

PM and Nagkaisa is calling on both the national and local governments to render immediate justice to this case.  

 

Josua Mata, Secretary General of Alliance of Progressive Labor–Sentro, said Nagkaisa will be raising this issue before the Tripartite Industrial Council (TIPC) and the DOJ panel investigating the EJKs.

 

“Like Ruby, solving cases of EJKs in the country is a slow-grind,” said Mata.

 

Before Pango, another PM organizer, Victoriano Embang, leader of Maria Cecilia Farm Workers Association (MACFAWA) in Moises Padilla, Negros Occidental was also killed on December 29, 2012.  A failed assassination attempt against his brother, Anterio Embang, followed  few months later, February 28, 2013.

A Negrense himself, Magtubo said Negros remains a ‘labor hotspot’ because of strong resistance by landlords to agrarian reform and their outmoded serf-type treatment of their laborers.  

 

“Perhaps this regional feudal context has escaped the eyes of the labor department and the national government.  Or they simply don’t care,” added Magtubo.

 

Aside from EJKs, Nagkaisa! is also alarmed at the resurgence of other forms of human rights violations.  

Last October,  Antonio Cuizon, president of the Panaghiusa sa Mamumuo sa Carmen Copper, was arrested on trumped up charges of illegal possession of firearms and explosives.  The union and the management were then in the thick of labor dispute when the case was file against Quizon.

 

But the most widespread of human rights violations, Nagkaisa! said, is the violation of labor’s right to freedom of association and collective bargaining.

 

“The onslaught of state-sanctioned contractualization schemes have effectively disarmed workers of their ability to defend themselves, through their unions, against many forms of abuse and exploitation,” concluded Magtubo.

Peoples Action against the World Bank – Philippines

Manila –  This WB safeguard review started almost 3 years ago, but communities and organizations in the Philippines barely understand its process and contents. And to our knowledge, this is the first actual official interaction with Philippine organizations.  Yet, there has been too little time and lackluster effort to enable meaningful engagements.  Meanwhile, Southern and Northern organizations expressed their struggles and frustrations with the dismal handling of the Bank of the safeguards review over the past 2 years. The WB meetings last Oct. 8-11, 2014 in Washington DC was a clear reflection of peoples’ deep resentment over the poor consultation and bad safeguards draft. And here is the Bank doing a repeat of the same failures in running effective consultations: you give us too short notice to prepare and incomplete documents to consult. No draft business procedures, no implementation plan, no translations.

The affected communities and their support groups demand that the WB safeguard policies must be strengthened to ensure real protections for people and the planet. The draft does not promise to deliver that.

We are concerned that right now, Filipinos are not overcoming poverty, inequality and hunger are increasing, our natural resources are threatened by industrialization and extractive industries while labor rights are diluted or informalized. Contrary to the Bank’s rosy narratives of Philippine growth linked with its financing, this growth is widening inequality. Bank financing has not helped in preventing the intensified privatization of commons and has contributed to the systematic dismantling of essential public services. It has been muted in dealing with the discrimination against marginalized groups such as PWDs, IPs, children, and sexual minorities who are the most vulnerable sectors. They have been threatened by projects that were partly-funded by the World Bank Group. Remember the Manila Sewerage Project? Remember Chico dam in Cordillera? Remember IFC’s support to a mining project in the ancestral domain of the Mamanwas in CARAGA? In many instances, safeguards were useful in ensuring some basic minimum levels of protection were available.  But the Bank is moving to moving to eviscerate these basic human rights protections. You’re dumping people with more debts but you’re removing your environmental and human rights accountability.

We have watched with rising concern that your new “safeguard” proposals betray these expectations and represent the opposite.  In this process, we believe that the World Bank is stepping back on its promise to reduce poverty.

Instead of ensuring protection of vulnerable communities and the project affected people, your draft proposes dismantling of even existing protections that have been built over decades of hard work, hard won protections that people have fought and died for here in the Philippines, including social justice laws for indigenous peoples, environment, land reform and people’s participation in governance.

We cannot remain mute spectators of this regressive journey and must convey to you the rising frustration and anger amongst the many communities that are facing these impacts from Bank-supported projects, and also within many people’s movements and supporting civil society groups, networks and alliances from all over the Philippines.

Our colleagues have watched with growing dismay – the increasingly insensitive responses to the passionate appeals by cornered and distressed communities affected by bank supported projects.  I personally appealed that this consultation be re-scheduled to give time for communities and organizations to understand better the process and substance of the safeguards, but my appeal was rejected.

We are also alarmed by the rising talk of the Bank venturing into riskier investments, coming from as high positions as the WB President! Hundreds of indigenous peoples and forest dwellers organizations are terribly concerned with the proposed ‘opt out’ clause, and the dilution of protection hitherto given to biodiversity rich and protected areas.  You also propose to venture into uncharted territory of biodiversity offsets!  These are gambles more suited to a venture capital fund, not fit for a “Development Bank”, and the Filipinos cannot allow this to happen.

We, the dozens of people’s movements and organizations present here from all over the Philippines, and the many thousands we represent back from our communities, are rejecting this current draft of safeguards.  The protections you now seek to dismantle, the safeguards that we fought for over decades - do not belong to you, they are not yours to throw away, they belong to the world and its vulnerable people.

We are also aware of a handful of saner voices from within the bank, and urge them to fight inside the system, for protecting the very rights they themselves enjoy – also for the people and communities around the world facing potential threats from this proposed dilution of protections.  We strongly believe this protest action that we are compelled to take, will strengthen those voices and create a better environment for creating a really progressive safeguards policy.  This will be in the interest of the bank itself, as well as for the entire Philippines, and the rest of the world.

That is why we are forced to take this action now and join our partners in the protest outside.  Today we are going out of this consultation, to defend the safeguards and to stand with the World and against the Bank that is trying to destroy it!  We sincerely hope that this will help a better tomorrow, within & outside.

Signatories:

AKBAYAN

Aniban ng Manggagawa sa Agrikultura (AMA)

Alliance of Progressive Labor (APL)

Alyansa Tigil Mina (ATM)

Bank Information Center (BIC)

DANGAL

Freedom from Debt Coalition (FDC)

NAGKAISA

NGO Forum on the ADB

Philippine Movement for Climate Justice (PMCJ)

SANLAKAS

 

Predatory MERALCO price hike slammed by NAGKAISA

Meralco already insured against maintenance shutdowns, Power Supply Agreements cover Meralco risk with power providers

The NAGKAISA labor coalition denounced the December P3.50 per kWh rate increase as an immoral imposition and an unconscionable predatory move in the face of our massive national suffering and despair. Instead of moderating its greed, MERALCO and the generating companies First Gas (Sta. Rita), South Premier Power Corporation (Ilijan) and Therma Mobile, Inc. (San Lorenzo) – which are its cohorts – chose to further impoverish hardworking Filipinos and complicate the already difficult road to national recovery.

MERALCO residential rates currently pegged at Php12.46 per kWh will now be hiked to Php15.96 per kWh, representing a 28% increase. The new rate is equivalent to US$ 37 cents per kWh. That is the highest residential rate, bar none, in the WORLD. Its consequences for families coping with the triple whammy of NAPOLES-scale corruption, spiralling oil and LPG prices, and natural calamities are immense.

For industry, where power rates already constitute 45% to 55% of operational costs, particularly for Small and Medium Enterprises (SMEs) and BPOs, the rate increase will greatly affect their business viability. For the national economy, it compromises our regional competitiveness in the ASEAN and will be a disincentive to locators remaining and to the entry of foreign direct investments.

NAGKAISA pointed out that before a new tariff formula called Performance-Based Rate-making (PBR) was implemented by the Energy Regulatory Commission (ERC), MERALCO only made an annual net profit ranging from Php3 to Php6 billion. Under PBR in 2012, MERALCO declared a net income of Php16.25 billion. For 2013 MERALCO expects a consolidated net income of Php17 billion. NAGKAISA decried this overly-generous rate of return allowed by ERC which allowed MERALCO to earn in just one year what it used to take them 3 years to earn.

NAGKAISA also countered the MERALCO assertion that the maintenance work on Malampaya and resorting to the more expensive sources of WESM would result in a power rate increase of anywhere from Php2 per kWh to Php3.50 per kWh. NAGKAISA argues the following:

• · The scheduled maintenance of Malampaya and other plants should or was already imputed in the MERALCO rate. If MERALCO management did not prudently build this into their rate then the owners and management of MERALCO should bear the loss, not the consumers. The maintenance was scheduled way ahead of time and the cost consequences should already have been placed in the power supply agreements which MERALCO entered into.

• If there is a forced outage, MERALCO and the power producers First Gas (Santa Rita), Therma Mobile (San Lorenzo) and SPPC (Ilijan) from which MERALCO buys its power are insured against possible spikes in costs. Why is MERALCO passing the burden to consumers when there is insurance for forced outages. Again, if MERALCO did not enter into any form of insurance or contract stipulation as to who will pay for the alternative supply in case of an outage (the alternative supply in this case is WESM), then MERALCO again has acted imprudently and should bear the cost of its imprudence.

• MALAMPAYA is providing only a certain percentage of the power needs of MERALCO. Why are the entire costs of the downtime of Malampaya being borne by MERALCO consumers? How did it amount to a possible P3.50 per kWh increase?

• Why has the ERC as regulator not stepped-in to validate the current claims of MERALCO when there are Commission on Audit findings of overcollection in 2004 and 2007 in the generation charges of MERALCO? Does ERC take the manifestations of MERALCO and the generation players as gospel truth?

• Why has the DOE – or the Palace for that matter – not addressed the possibility of resorting to the MALAMPAYA FUND to reduce rates and to cushion the impact if indeed there is a problem not anticipated in the power supply contracts entered into between MERALCO and the generators?

THE TRUTH OF THE MATTER IS THAT CONSUMERS ARE BEING MADE TO ADVANCE WHAT THE MERALCO WILL BE COLLECTING FROM ITS INSURERS EVENTUALLY. When MERALCO entered into its supply contracts, it inputted and covered against all projected events and the cost consequences. These costs were built into the original power supply agreement and are therefore built into the rate. Further, MERALCO insured against all risks. MERALCO IS TRYING TO COLLECT FROM ITS CUSTOMERS BECAUSE IT THINKS IT CAN FOOL THEM. ENOUGH IS ENOUGH.

NAGKAISA has warned that the Wholesale Electricity Supply Market (WESM) does not and cannot work where you have insufficient supply. Given inadequate power supply, there will be no competition to drive down rates because it will be a sellers market. NAGKAISA, as a disinterested party, had already warned the government of this in its meetings with the economic cluster of the Cabinet in April and May 2013. NAGKAISA notes that notwithstanding the notable failure of WESM to bring down electricity prices in Luzon and Visayas, the DOE is currently piloting it in Mindanao where power supply is also inadequate.

NAGKAISA warns that the general public are beginning to realize that the Palace is a defender of MERALCO by its statements that there is “regularity” to the rate increase because it was “in accordance with the law.” NAGKAISA reminds the Palace that it is not for the NAGKAISA or the Palace nor the DOE to determine regularity. That is a function that clearly lies with the ERC. It is the ERC which must determine the course of action to be taken: to set the increase aside or to cushion its impact through rate increases staggered over a longer period of time.

NAGKAISA also reminds the Palace that perhaps something is deadly wrong with the EPIRA Law and that it is time to take a second hard look on how to ensure affordable power and supply that is reliable. We reiterate our call for the creation of a Presidential Task Force to bring down power rates. The Palace should talk to disinterested parties – not the power cartel.

Finally, NAGKAISA reminds the Palace that if in its fight against corruption, it brought down an Ombudsman and a Chief Justice, it can certainly do something about a certain ERC Chairperson named Ducut. Consumer and labor representation in the ERC is long overdue.