Return workers’ P5-B tax refund, BIR urged

THE Bureau of Internal Revenue (BIR) is yet to refund an estimated P5 billion that it unlawfully deducted from minimum-wage earners despite a ruling issued by the Supreme Court (SC) almost a year ago.

Organized labor on Friday took the cudgels for the more than 30 million ordinary workers nationwide, insisting that a cash refund is long overdue, including the legal interest the collected money earned from 2008 to the present.

“We cannot understand why the BIR and the DoF [Department of Finance] are quick to squeeze money from the workers but it takes forever for them to return those. Mahiya naman kayo [Have shame]! Those are workers’ blood money. Pinaghirapan yan ng mga manggagawa, ibalik na ninyo [They worked hard for it, give it back to them]!” Alan Tanjusay, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesman, said.

In its 56-page decision issued on January 24, 2017, the High Court nullified several provisions of BIR Internal Revenue Regulation 10-2008 that disqualify minimum-wage earners (MWEs) from tax exemptions on their wage, bonus and other compensation benefits such as overtime pay, hazard pay, holiday pay and night-shift differential pay, including fringe benefits in excess of P30,000, including those who received their 13th month pay bonus.

But despite the ruling, the BIR continued to collect taxes on the basic wage, bonuses and other benefits from millions of minimum-wage workers nationwide from June to December 2008 even as the law exempted them from such taxes starting July 6, 2008.

The SC also directed the BIR to grant a refund or allow a refund through withheld tax adjustments or a claim for tax credits by those subjected by IRR 10-2008.

“Some minimum-wage workers who were subjected to tax may have remained a minimum-wage earner up to this day but they cannot claim tax credit because they are exempted from income tax. Some may have been promoted and some may have been unemployed. Some have become OFWs [overseas Filipino workers]. Some are already deceased,” Tanjusay said, adding, “In fairness to the workers subjected by the regulation, the best option here is a cash refund.”

The Supreme Court ruling stemmed from petitions filed by lawmakers, individuals and labor groups. - BY WILLIAM DEPASUPIL, TMT

Trade Union Statement on the 8th ASEAN Regional Tripartite Social Dialogue Conference in Manila, 18-19 October 2017

File photo / Rappler.com

Trade unions across the ASEAN expressed great disappointment over ASEAN governments who refused to commit to advance workers’ rights in the sub-region.

Ironically, governments refused to heed the workers’ calls during the 8th ASEAN Tripartite Social Dialogue Conference—a forum dedicated to deepen understanding and relations between and among social partners—government, employers and workers.

At the two-day Conference, panel sessions delved on effective social dialogue mechanisms, many examples of which featured good practices of the Philippines.

On the final day of the conference, social dialogue in practice was put to a test. The final plenary session was held to come up with the conference conclusions and recommendations.

In separate interventions, workers' delegates asked that the conference document reflect the calls to ratify ILO Convention 144 on tripartism; Convention 151 on labor relations in the public sector; and core labor standards covering freedom of association and free collective bargaining; an end to forced labor; elimination of child labor; and an end to discrimination at work.

Ratifying ILO Convention 144 is important as it provides the framework for tripartism and social dialogue in ASEAN member countries. The conference did not explicitly define tripartism and provide a framework for social dialogue. ILO Convention 151 was the subject of a panel discussion where the resource persons openly called for its ratification. Meanwhile, core labor standards was a recurring theme, especially with the acknowledged decline in trade union density across ASEAN.

In the course of the dialogue, workers revised their position several times with the hope of convincing governments and employers to soften their position. Workers offered to change the language to "work towards ratification of the ILO Conventions" instead of the direct call for ratification of ASEAN member states to indicate commitment. They still objected without explaining their position. Workers then moved to just "recognize that trade unions are calling for the ratification" of the said standards. But governments led by Indonesia, Malaysia and Myanmar and employers maintained their stubborn stance.

After the discussion on the conference statement, trade unions affiliated to Building and Wood Workers International (BWI) and Public Services International (PSI) along with NAGKAISA Labor Coalition expressed their strong objection to the final Conference Joint Statement for not living up to the spirit of tripartism and social dialogue. #

20 October 2017


Signed by ASEAN affiliates of:
· Building and Wood Workers International (BWI)
· Public Services International (PSI);

and, members of:
· NAGKAISA Labor Coalition, Philippines

Metro Manila minimum wage earners to get P21 more starting October 5

Non-agricultural workers will now receive P512 per day while agriculture and service workers will get P475 per day

MINIMUM WAGE. The additional P21 minimum wage will be given starting October 5, 2017. File photo by AFP

MANILA, Philippines – Starting Thursday, October 5, minimum wage earners in Metro Manila will receive an additional P21 in their daily basic wage.

The Regional Tripartite Wages and Productivity Board-National Capital Region granted the increase on September 14 through Wage Order NCR-21. The order was published in the Philippine Star on September 20.

Non-agricultural workers will now have a daily minimum wage of P512 from their previous pay of P491. Agriculture, retail, and service establishments with at most 15 workers and manufacturing businesses with less than 10 workers should pay their employees a minimum rate of P475.

The Wage Board clarified that domestic workers, persons "in the personal service of another," and employees of registered Barangay Micro Business Enterprises (BMBEs) are not covered by the order.

Household workers in Metro Manila and first class municipalities should receive a salary of at least P2,000 under Republic Act 10361 or the Batas Kasambahay Act.

Meanwhile, those paid on a per task basis are also entitled to the new rate for every 8-hour work per day.

The approved wage rate is way below the amounts proposed by the labor unions that petitioned for a hike last June.

The Associated Labor Unions (ALU) sought a P184 increase, while the Trade Union Congress of the Philippines (TUCP) asked for a P259 increase and the Association of Minimum Wage Earners and Advocates (AMWEA) wanted the minimum wage to be raised to P1,200 in 4 tranches.

Labor unions argued that the purchasing power of the P491 daily wage has slid to P354.51 based on government figures. (READ: Labor union to wage board, employers: Try living on P357 a day)

They are still calling on President Rodrigo Duterte to grant the P500 subsidy for workers similar to the conditional cash grant under the Pantawid Pamilyang Pilipino Program.

Meanwhile, leftist union Kilusang Mayo Uno renewed its call to establish a national minimum wage of P750 instead of individual rates per region. – Rappler.com Patty Pasion @pattypasion

Metro Manila workers to get P21 daily wage hike

For some workers in Metro Manila, a wage hike does not necessarily mean that they will be able to make ends meet.

Metro Manila (CNN Philippines, September 15) — Minimum wage earners in Metro Manila will receive an additional P21 a day after the regional wage board approved the increase Thursday.

This brings the minimum wage for non-agriculture workers in Metro Manila to P512 from P491 starting the end of September.

Those in the agriculture sector, small retail, service and manufacturing establishments will get P475 from the previous P454.

According to the order, the wage board "has determined the need to increase the prevailing minimum wage rates without impairing the viability of business and industry."

The Associated Labor Unions - Trade Union Congress of the Philippines (ALU-TUCP) said the hike will affect about 6 million minimum wage earners in Metro Manila.

The 21-peso wage hike is still below the petitioned increase by three labor groups.

In June, the Association of Minimum Wage Earners and Advocates - Philippine Trade and General Workers Organization filed a petition for a P175 hike, while the ALU-TUCP sought a P184 increase. The Trade Union Congress of the Philippines asked for P259.

While the wage hike covers all minimum wage earners in the private sector in Metro Manila, it excludes domestic workers, persons in the personal service of another, and workers of duly registered Barangay Micro Business Enterprises.

Wage hike not enough

The ALU-TUCP said the P21 increase is inadequate to meet the needs of minimum wage workers.

"The P21 increase in daily wage remains insufficient for families to cope with rising prices of goods and increasing costs of goods. P21 is only 4.27% of the current P491. So it obviously did not lift workers out of poverty," said ALU-TUCP spokesperson Alan Tanjusay.

He said the group will request President Rodrigo Duterte to provide a P500 monthly cash subsidy to minimum wage workers to purchase rice, groceries, and medicines.

Labor union Kilusang Mayo Uno agrees.

"Instead of heeding our demands, the Duterte government is insulting workers with a measly 21 peso increase that would even be futile amidst the unabated increases in the prices of basic goods and services," it said in a statement. - By Ver Marcelo, CNN Philippines