Duterte admin's tax reform package a 'big mistake' – labor coalition

ALU-TUCP says the tax reform package just passed by the House 'is not uplifting because those who are already poor workers would become even poorer'

UNEMPLOYMENT. Thousands of job seekers troop to the Quezon City Hall on Labor Day to seek job opportunities at the DOLE's Job Fair. File photo by Darren Langit/Rappler

MANILA, Philippines – While the Duterte administration's proposed tax reform package seeks to increase the take-home pay of workers, labor groups are worried about the expected increase in the prices of goods that would come with it.

The House of Representatives had passed on Wednesday, May 31, its version of the tax reform package, which would exempt those earning P250,000 or below annually from paying income taxes and would reduce the maximum rate of personal income tax over time from 32% to 25%, except for high income earners.

But under the measure, there will be higher excise taxes on refined petroleum products, certain vehicles, and sugar-sweetened beverages. The excise tax on fuel is expected to drive the prices of basic commodities up.

"The impact of the proposed tax measure to workers is not uplifting because those who are already poor workers would become even poorer. This bill is a big mistake committed by congressmen who approved it," said Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesperson Allan Tanjusay.

What ALU-TUCP wants President Rodrigo Duterte to do is grant minimum wage earners a P500 cash subsidy per month to cope with the rising costs of goods. The largest labor union in the country earlier proposed this aside from the petition to increase the daily minimum wage by P184.

The Department of Labor and Employment (DOLE) has not been keen on granting a subsidy because it will cost the government P1.3 billion a month or P15 billion a year.

ALU-TUCP maintains, however, that the P500 subsidy will help minimum wage earners and informal sector workers cope with inflation.

Minimum wage earners are exempted from income tax but still vulnerable to higher costs of living. The current minimum wages – the highest is at P491 and the lowest is at P260 – set across the country are less than their real value by P80 to 120.

Workers in the informal sector, which comprise 38% of the total working population, will also be affected due to the irregular flow of income given the nature of their jobs. Jeepney drivers, ambulant vendors, domestic helpers, and other odd-job workers are part of the informal sector. (READ: FAST FACTS: What you need to know about PH's informal sector workers)

The Federation of Free Workers (FFW), meanwhile, said the income tax exemption should be expanded to include workers with an annual income of up to P350,000 or roughly P30,000 monthly to offset the effects of inflation.

FFW president Sonny Matula said, however, that a monthly income of P30,000 or less is still below the living wage.

The Philippine Statistics Authority (PSA) pegs the living wage at P9,064 monthly for a family of 5 while independent think tank IBON Foundation says it should be at P1,019 per day or around P20,380 monthly for 20 workdays. – Rappler.com Patty Pasion @pattypasion

DOLE, top networking site address job-skill mismatch

THE Department of Labor and Employment (DoLE) has tied up with LinkedIn, one of the top business and employment-oriented social networking sites worldwide, in addressing a mismatch between skills and the actual jobs available in the market.

The mismatch is blamed as the prime driver of the country’s growing problem on underemployment.

Labor Secretary Silvestre Bello 3rd on Friday said LinkedIns would provide windows of opportunity for employers to peek into the skills of its Filipino members.

He added that the employment networking site has released its Philippine Skills Report, which shows the top skills of four million LinkedIn Filipino members, to help companies identify employees who fit its hiring criteria.

“The Philippine Skills Report of LinkedIn bares the list of in-demand jobs and top skills of around four million of its Filipino members. It will help companies to fulfill their hiring needs and for the job seekers to find right opportunities fitted with their expertise,” Bello said.

He added that the skills report will expand jobseekers’ career path decisions with increased job opportunities available in various industries, as the Philippines is currently considered as one of the Asia’s fastest-growing economies.

“The Philippines is currently one of the Asia’s fastest-growing economies, but this can only be maintained if companies can find the right talent and skill to foster business growth. In support of the Philippine government’s effort, LinkedIn is helping to bridge this gap and support local business by effectively connecting talent and skill with the right opportunities,” Bello said.

In the DoLE’s Labor Market Information (LMI) Report for 2013 to 2020, it identified key 275 occupations as in-demand and 102 occupations are listed as hard-to-fill from among key and emerging industries.

In-demand occupations refer to active occupations/job vacancies posted or advertised recurrently. These occupations have high turnover/replacement rate and are essentials in the operations of a company.

Organized labor has said that just this year, some 1.2 million college and vocational graduates find difficulty in getting a job because of a growing mismatch between their training and the job skills required by most employers.

According to the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), through spokesman Alan Tanjusay, the job-skill mismatch crisis in the country continues to grow, resulting in stiffer competition and prompting employers to put additional qualifications into the job descriptions for them to compete.

LinkedIn cited the Top 10 industry where its Filipino members came from, with Information and Technology topping the list, followed by Outsourcing, Education, Banking and Financial Services, Telecommunications, Real Estate, Healthcare, Computer Software, Oil and Gas and Manufacturing.

It also bared the most hired occupations on its site to guide possible Filipino members to sign up and look for in-demand job opportunities being offered by hiring companies.

Some of the most hired occupations on LinkedIn are Sales Professional, Software Developer, Customer Service Specialist, Marketing Specialist, Operations Manager, Recruiter, IT Support Specialist, Human Resource Professional, IT Consultant and Accountant.

“DoLE is working hand-in-hand with other partner agencies and organizations, including LinkedIn to address job-skill mismatch in our country. We need to bridge the gap between the skills and job opportunities for better career and economic gains,” Bello said. - WILLIAM B. DEPASUPIL / BY THE MANILA TIMES

ALU-TUCP wants P157 wage hike

The country's biggest labor federation, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), will file today (Wednesday, May 24) a petition for an across-the-board P157 wage increase for workers in the National Capital Region.

The TUCP said the petition for wage increase was due to the rising cost of basic needs, such as electricity, water, foods and transportation.

ALU-TUCP spokesperson Alan Tanjusay said they will file the petition for Metro Manila's private sector minimum wage earners at the office of the Regional Tripartite Wage and Productivity Boards is-National Capital Region in Malate, Manila.

Tanjusay justified their demand for a P157 increase in daily minimum wage in the NCR , saying the current wage of P491 was not enough to lift workers out of poverty.

If approved, the minimum wage in Metro Manila would be P648 a day.

The petition for an "across-the-board" increase wil benefit all workers in all industries in the NCR, Tanjusay said.

The TUCP cited the reason for the wage increase to the rising inflation—low purchasing power of the workers monthly pay, which actually is equivalent to only P315.56, way below the government's 600-a-day estimated poverty threshold for a family to cope with the cost of living.

At present, the workers monthly basic was valued only at P9,467 a month, which should be at least P15,000 today to meet the basic food needs of a family of five based on the Food and Nutrition Research Institute (FNRI).

"All of the workers in Metro Manila should have the increase because everyone is hit by price increases," the ALU-TUCP said. - by Vito Barcelo / manilastandard

4-day workweek bad for workers' health, productivity – labor group

Data from the Philippine Statistics Authority show there were more than 8 million overworked Filipinos in 2015

LABOR SECTOR. Filipino cannery workers process sardines in Zamboanga City on February 25, 2009. File photo by Therence Koh/AFP

MANILA, Philippines – The Federation of Free Workers (FFW) warned that a shorter workweek, as proposed in a measure filed at the House of Representatives, could affect the health and productivity of workers.

Under House Bill 5068, companies would be allowed to implement a 4- to 5-day workweek, instead of the current maximum of 6 days required by the Labor Code.

But the FFW said this might lead to the standard 8-hour workday becoming 12 hours.

"Working for more than 8 hours, although tolerable for a day or two, would not be good for workers' health in the long run. Working 12 hours a day for 4 straight days a week will take a toll on the body," said the FFW in a statement on Thursday, May 18.

"This is dangerous to the health and occupational safety of workers and run contrary to the International Labor Organization (ILO) Convention No. 1 on the 8-hour industrial convention of 1919," the group added.

The convention limits the number of work hours in the industrial sectors to 8 hours a day or 48 hours in a week. This covers mines, factories, and other manufacturing firms.

A report by the Philippine Statistics Authority (PSA) found that there were 8.105 million overworked Filipinos in their primary job in 2015. The number is greater for Filipinos overworked in all of their jobs at 8.845 million.

Senator Grace Poe filed a resolution in March calling for a review of existing policies on the required work hours of companies. She said studies have linked excessive work hours to serious health problems that cause death.

"Chronic overworking, as various research suggest, can lead to threatening levels of stress," the senator had said.

Work-life balance

Meanwhile, the Department of Labor and Employment (DOLE) and the Trade Union Congress of the Philippines (TUCP) expressed support for the proposal.

"Once it is approved, it will provide work-life balance. Workers and employees can spend more quality time with family necessary to become more productive at work, reduce work-related stress and fatigue, minimize transportation cost, reduce workplace electricity expenses, and help decongest traffic," said the TUCP.

But they said there should be proper consultation with workers before implementing a shorter workweek, in case the bill is passed into law.

DOLE Undersecretary for Human Capital Development and Regional Operations Bernard Olalia said the measure should ensure that daily wage earners would receive the same compensation. He added that occupational safety and health standards should still be followed for overtime work.

The FFW also said: "Daily wage rate is pegged at 8 hours. Any work longer than that should be paid with overtime premium."

The minimum wage in Metro Manila is currently P491 per day. Compressing the workweek could lead to a reduction in income if adjustments won't be accommodated.

The labor sector has been calling for a wage increase since the regional standard wage is at least P100 less than the real value of their wages.

The PSA estimates that a monthly income of P9,060 – equivalent to P453 a day in a 5-day workweek – is needed by a family of 5 to meet their needs. – Patty Pasion @pattypasion Rappler.com