‘30 M endo workers sliding deeper into poverty’

Some 30 million short-term contractual and minimum wage earners remain poor despite the country's consistently high economic growth. STAR/File

MANILA, Philippines - Some 30 million short-term contractual and minimum wage earners remain poor despite the country's consistently high economic growth.

This was according to the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) that said yesterday the purchasing power of the daily wage remained below the standard poverty threshold.

"These minimum wage earners who helped build the country's high economic wealth are living way below the poverty line," ALU-TUCP spokesman Alan Tanjusay said.

Tanjusay said the chances for these workers to get out of poverty by way of job regularization and security of tenure are "forever shut" by the recent issuance of Order 174 by the Department of Labor and Employment (DOLE).

Rather than prohibiting contractualization, DOLE Order 174 "legalizes" and perpetuates it, the group said.

Aside from having no security of tenure because they work for less than six months, contractual workers are forever tied to the minimum wage, he said.
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The National Economic and Development Authority (NEDA) had set the poverty threshold level or standard amount needed by a family of five to survive in a month in 2015 was P9,064 or P393 a day.

However, based on monitoring made by ALU-TUCP on workers' purchasing power against cost of living, the real value of endo workers' nominal P491 daily minimum wage in Metro Manila fell to P361.30 in January 2017, equivalent to P8,671.20 a month.

The average real wage amount in regions outside National Capital Region, on one hand, is P250 a day or P6,000 per month.

Tanjusay said the buying power of the minimum wage – P361 in Metro Manila and P250 in regions outside NCR – is inadequate compared with the P393 amount needed by a family to survive in a day.

It means minimum wage workers need at least P32 more and P143 more on top of their daily pay for workers within and outside Metro Manila, respectively to stay within the threshold and not be considered poor.

"There has been no inclusive growth for medium wage earners because the buying power of minimum wage is going downward amid rising prices of basic necessities and cost of services. Because they have no savings and inadequate government support programs, minimum wage workers are so vulnerable that if they get sick, are late or absent from work, or any small price hike shocks – they fall deeper into poverty," he said.

For Vice President Leni Robredo, the recent DOLE order is not enough to effectively ban the practice of contractualization in the country.

"It needs to be more specific in a sense that, maybe it would help in the implementation if they will give examples of contractualization," Robredo said.

"We want to make sure that it will be properly implemented. We saw in the executive order that it lacks examples of contractualization that may have avoided giving (those concerned) a lot of elbow room for interpretation," Robredo told a student forum at the University of the Philippines in Los Baños, Laguna on Friday. – By Sheila Crisostomo (The Philippine Star) With Janvic Mateo

Dole order on ‘endo’ a ‘loss-loss’ for labor–TUCP

A labor group known to take conservative positions on issues affecting workers has joined protests against a new order that the labor department described as its answer to calls for President Rodrigo Duterte to fulfill a promise to end "endo" (end of contract).

Endo is street slang for the practice by many companies of hiring contractual workers and firing them at the end of their contracts to prevent them from becoming regular employees.

A leader of the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said the Department of Labor and Employment (Dole) order, issued by Labor Secretary Silvestre Bello III, was a "loss-loss situation for workers."

ALU-TUCP, known for prioritizing negotiations over strikes in labor conflicts, joined militant labor groups in protesting the new Dole order.

Alan Tanjusay, ALU-TUCP spokesperson, said the Dole order ran counter to Mr. Duterte's promise to end short-term and agency-based hiring of workers.

"We urge him to reject it," Tanjusay said in a statement.

"It is a loss-loss situation for workers and a win-win formula in favor of employers, manpower services, cooperatives," the ALU-TUCP spokesperson said.

"The order signed by Bello on March 16 also contradicts the desire of [Mr.] Duterte to end contractualization and for the government to do away with agency hiring," he said.

Dole Department Order No. 174 bans labor-only contracting. Its issuance came after months of deliberations and meetings with employers and workers' groups.

Under the order, contractual arrangements are to be regulated and endo would be prohibited.

Ending endo has been one of Mr. Duterte's most highly anticipated decisions and had been one of the central themes of his campaign for the presidency.

In previous meetings with labor groups and Dole officials, Mr. Duterte had reiterated that he was bent on fulfilling his promise to end endo.

Tanjusay echoed protests made by militant workers' groups that described the Dole order as a disappointment that would just perpetuate endo.

He said while the order banned labor-only contracting, it failed to plug loopholes that would allow employers to seek the cheapest job contracts that would burden workers with low, illegal wages. - By: Julie M. Aurelio - @inquirerdotnet Philippine Daily Inquirer

Labor group urges Duterte to reject DOLE order on ‘endo’

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Saturday urged President Rodrigo Duterte to reject Department of Labor and Employment's (DOLE) Order 174, as it defies his promise to end short-term and agency-hired work arrangement.

DO 107, issued last Thursday, prohibits the repeated hiring of employees by contractors under an employment contract of short duration that falls short of the mandated six months to qualify for regularization.

"We urge the President to reject DO 174 because it is a loss-loss situation for workers and a win-win formula in favor of employers and manpower service providers and cooperatives," Alan Tanjusay, spokesperson of ALU-TUCP, said in a statement.

The labor group had said it was not satisified with the new order as it still allows contracting and subcontracting or outsourcing of manpower by a principal to an agency.

"It will perpetuate and further proliferate the existing unperturbed race to the bottom for millions of contractualized workers once it becomes operative two weeks from now," Tanjusay said.

He added that while the DO bans labor-only job contracting, hiring for less than six months and repeated hiring of employees by employers, manpower service providers, cooperatives as well as in-house supply of workers; the order still spawns modern-day labor slavery and "race to the bottom."

"Employers and capitalists will now seek the lowest and bid out the cheapest job contracts they can get out of the wide pool of manpower labor contractors and manpower cooperatives market with contractualized workers ending up with low and unlawful wages and benefits," Tanjusay said.

In a press conference in Quezon City, Lakas Manggagawa Labor Center vice-chairman Dave Diwa stressed that the DO 174 is worse than the controversial DO 18-A because there are no penal provisions in the new order.

DO 18-A contains the "Rules Implementing Articles 106 to 109 of the Labor Code," which allows contracting and subcontracting arrangements.

"What happens to contractors or principals who violate DO 174? Pipitikin? Wala eh, walang nakalagay na penalties," Diwa said.

For his part, Sentro ng mga Nagkakaisa at Progresibong Manggagawa vice-chairman Danny Edralin criticized Labor and Employment Secretary Silvestre Bello III for saying that contractualization is allowed under the Labor Code.

"Mali 'yung premise ng sinasabi niya. Nakalagay sa Article 106 ng Labor Code na ang Labor Secretary may restrict or prohibit the contracting-out of labor. Hindi niya ginamit 'yang provision na 'yan," Edralin said.

Tanjusay said that Bello, instead, interpreted the particular provision in favor of capitalists and middlemen labor contractors.

"President Duterte, during the February 27 dinner dialogue with labor groups including Secretary Bello and top DOLE officials, has said that he will not abandon his promise to end contractualization job schemes in private and government work establishments. Mr. Duterte also expressed displeasure at agency-hired work arrangements," Tanjusay said. —John Ted Cordero/MDM, GMA News

More groups support lower income tax rate – DoF

The Department of Finance (DoF) said various organizations are backing the “long-overdue” reforms in personal income tax (PIT) rates and other measures under the proposed Comprehensive Tax Reform Program.

The tax reform package, as contained in House Bill (HB) 4774, aims to lower PIT rates from 32 percent to 25 percent, except for the ultra-rich, and exempt compensation earners with a net taxable income of P250,000 and below from paying an income tax.

Trade Union Congress of the Philippines (TUCP) Executive Board member Arthur Juego said at a recent hearing of the House Ways and Means Committee that TUCP welcomes the government initiative to introduce reforms in the tax system, most especially the current income tax structure.

Juego was quoted as saying that the proposed PIT reforms will “provide economic relief to workers who need to increase their take-home pay as prices of basic necessities and services such as food, water, electricity, medicine, housing and transportation are constantly increasing.”

Meanwhile, Financial Executives of the Philippines (FINEX) President Benedicta Du-Baladad said the organization fully supports HB 4774, because it’s simple and progressive approach to leveling the playing field.

“For progressivity, we thought that re-bracketing the income brackets to make sure that basic income that is considered subsistence level, sufficient enough to cover the subsistence level of a certain individual or family, has been exempted,” Baladad said.

“On the other hand also, for the middle-income individuals that the tax has been reduced compared to those which are on the higher income [brackets],” she said.

On the other hand, National Tax Research Center Executive Director Trinidad Rodriguez noted that under HB 4774 the P250,000 threshold is net of de minimis benefits, mandatory contributions and the first P82,000 of the 13th month pay and other bonuses. Effectively, what will be exempt in terms of gross compensation income is actually greater than P250,000, she said.

That will benefit almost 99 percent of the compensation income earners, she said.

“We fully support the lowering of the personal income tax. This has been long overdue; it’s been [unchanged]for almost two decades. It’s just right that we reduce the tax rate and widen the taxable income brackets to address the so-called bracket creep. And this will also correct some of the inefficiencies and inequities in our present tax system,” Rodriguez said.

The Institute for Labor Studies (ILS), an attached agency of the Department of Labor and Employment (DoLE) also supports HB 4774.

OIC-Deputy Executive Director Brenalyn Peji said ILS is backing HB 4774. “The DoLE, in general, supports those bills that will promote the welfare of our minimum wage earners, and even those who are earning above-minimum wage,” she said.

The DoLE is one with the position that a fairer, simpler and more effective taxation system will encourage or promote a more conducive environment for investments. Eventually, it will promote employment generation which can address standing issues on unemployment and underemployment, Peji noted.

The Nutritionist-Dietitians’ Association of the Philippines informed the committee that it also supports HB 4774, particularly the restructuring of income brackets and reduced tax income taxes.”

“[Our organization has for its members] the people who are employed mostly in hospitals and public health agencies and institutions, so we depend on income from salaries earned,” said president Dr. Adela Jamorabo Ruiz.

“We appreciate this creation of a tax system that is simpler, fairer and more efficient. We do hope that these reforms will be expedited considering that professionals are taxed heavily,” she said. - By MAYVELIN U. CARABALLO, TMT on March 15, 2017 Business