Hanjin ‘nationalization’ draws support from TUCP

The Trade Union Congress of the Philippines on Saturday expressed support for the proposed partial nationalization of the Hanjin NJIN shipyards at Subic by the Department of National Defense Secretary Delfin Lorenzana.

In a statement, the TUCP said there is a need to emphasize a Philippines-first strategy to ensure that Hanjin is rehabilitated under Philippine management, perhaps through a management contract with the Philippine Navy.

“TUCP reminds the five creditor banks of Hanjin that national security interests and saving the jobs of Filipino workers makes economic sense. We urge the creditor banks to be prudent and cautious in their rush to look for a “white knight” investor lest they unwittingly actually compromise our national security and open us up to a “hostile dragon,” TUCP president Rep. Raymond Mendoza said.

The big labor group said that there are natural ups-and-downs in the shipbuilding industry, saying that when demand for ships once more increases, the Philippines will have world-class workers and a world-class shipyard ready and perfectly positioned to take advantage of the renewed demand.

“Only recently, the Philippine Coast Guard acquired three modern fast patrol craft from a French firm. This is proof that there is an existing market as under the Armed Forces of the Philippines Modernization Program, our naval fleet and coast guard fleet have to be modernized to fight smuggling and the threat of terrorism,” Mendoza said.

He said that instead of buying ships from the French or the Israelis, the Philippines can produce ships in Subic, and improve the internal capacity to equip the country.

“In the process we also save the jobs of Filipino workers in Hanjin,” Mendoza added.

“TUCP insists that if there are any existing corporate liabilities that is due to the workers earlier laid off, the creditor banks must proritize this. Again, we caution the creditors from following the path of least resistance and trying to cut off the assets of Hanjin into pieces and selling it at a firesale at discount rates. We fear the creditors may pick an investor to step up and come in who will begin by laying off the remaining workers, who will lower occupational safety and health standards to bring down operational costs, or who will re-classify existing regular workers as contractual labor. These are highly-skilled workers so let us make use of their strategic value as a specialized team. Let us put Filipino worker interests first also,” he said.

While the five creditor banks have pledged that they will “coordinate,” the TUCP proposes that an interagency team be established to firm up the rescue efforts to refloat the Hanjin operations.

“TUCP believes that the international goodwill of the Filipino seafarers should also be tapped to mobilize the international manning agencies and the shipping lines to market the services of Hanjin abroad,” Mendoza added.

Gov’t takeover of Hanjin backed

BEFORE DEFAULT Cranes operate at the Hanjin shipyard in Subic weeks before it was forced to retrench workers after defaulting on its debts. —CONTRIBUTED PHOTO

The Trade Union Congress of the Philippines (TUCP) backed Defense Secretary Delfin Lorenzana’s proposal to take over the cash-strapped Hanjin shipyard, one of the biggest employers in the country.

TUCP president Raymond Mendoza, who is also the union’s party-list representative, said the move would not only save jobs, but also develop the country’s potential in the shipbuilding industry.

“These are highly skilled workers so let us make use of their strategic value as a specialized team. Let us put the Filipino workers’ interests first,” Mendoza said.
Hanjin Heavy Industries and Construction-Philippines employed around 19,000 Filipino workers in 2017, but declared bankruptcy on Jan. 8 after defaulting on $412 million in local loans.

Hanjin’s local creditors — Rizal Commercial Banking Corp., Land Bank of the Philippines, Metrobank, Bank of the Philippine Islands and Banco de Oro — are now suing to recoup their exposures.


Local ships

But since the country is ordering ships from overseas to build up its naval and coast guard fleets, Lorenzana suggested on Wednesday that the government take over the troubled shipbuilder.

“This is really perfect for us,” he said. “We are actually ordering ships from abroad and if you can take this over then we can build our own ships here.”

“I said ‘why not take over Hanjin and give it to the Navy to manage?’ So I brought this idea to the President and he is very receptive to the idea,” Lorenzana said.

Mendoza supported Lorenzana’s proposal and said Hanjin’s financial woes has already caused it to cut its work force to only about 3,800 this month from a peak of 30,000 in 2016.

In December alone, more than 7,000 workers were laid off from the shipyard.

Mendoza said a government takeover would not only stop the layoffs, but would also position the country as a world-class shipbuilding nation.

Increasing demand

“When demand for ships increases once more, and it will, the Philippines will have world-class workers and a world-class shipyard ready and perfectly positioned,” Mendoza said.

But some of the country’s economic managers are not receptive to the idea.

“The role of government is to provide defense, national security, and peace and order. It’s not to do the direct production of whatever they use,” said Budget Secretary Benjamin Diokno. - By: Jovic Yee - Reporter / @jovicyeeINQ 

PH labor group files wage hike petitions nationwide after rise in food, oil

THE country’s biggest labor group is filing petitions for a wage increase before various regional wage boards across the country amid the rise in prices of food and services brought about by the implementation of the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which imposed additional excise tax on fuel.

The Trade Union Congress of the Philippines (TUCP) said on Tuesday that based on its computation, it may petition for a minimum of P313 to a maximum of P355 wage increase based on the current prices of commodities and services despite strong opposition from employers and business groups.

TUCP President Raymond Mendoza said the group was monitoring the movement of prices of goods and services following adjustments in the prices of diesel and gasoline effective earlier on Tuesday.

“We will be citing supervening conditions in filing the petitions. We are also going to test once again the capacity of the wage boards to remain relevant with its mandate to raise the minimum wage to an amount that can ably support a family,” Mendoza said.

He said there was a strong clamor from its members and social media netizens for TUCP to push for the abolition of differentiated wage rates and put up a single wage setting body that would periodically adjust the uniform minimum wage rate for all workers across-the-board nationwide using social and economic data in determining the amount.

All 17 wage boards in different regions have adjusted the minimum wage rates from P8.50 to P56 daily wage increases in different periods in 2017, including Metro Manila on November 2018 with P25 daily wage hike.

The TUCP said, however, that despite the adjustments, current minimum wage levels remained inadequate for workers and their families as inflation rate still stood at a high 6.7 percent.

The group also reiterated its call to President Rodrigo Duterte to approve its proposed P500 monthly food voucher subsidy to all minimum wage earners as the pay increases approved by businesses and employers nationwide remained inadequate to cope with extraordinary rise in the prices of goods and services.

Under the proposal submitted to Duterte on April 2017, labor urged government to address continuing inflationary impacts by providing a P500 monthly food voucher, non-transferable subsidy initially to an estimated 4 million minimum wage workers.

Labor Secretary Silvestre Bello 3rd only endorsed P200 to the President in June this year and was still pending approval by the Departments of Budget and Management and of Finance. - WILLIAM B. DEPASUPIL

Safety net for Hanjin workers pushed

Hanjin / Abante file photo

A legislator on Saturday ruled out a congressional inquiry into the bankruptcy of Hanjin Heavy Industries and Construction Philippines “at this time” as a labor group urged the government to prepare safety net plans for some 23,000 workers who stand to be displaced over the shipbuilder’s debt woes.

“I do not think a congressional probe is necessary at this time. The responsible government agencies and the banks must be given time to sort everything out, but Congress will be following this case very closely,” said Leyte Rep. Henry Ong, chairman of the House Committee on Banks and Financial Intermediaries.

Ong said the Securities and Exchange Commission, the Bangko Sentral ng Pilipinas and the Department of Labor and Employment must jointly intervene “to make sure the interests of all stakeholders are protected.”

“According to media reports, some banks did not have collateral protection when they extended loans to Hanjin’s Philippine unit. The pay and benefits of the 23,000 Hanjin workers must be among the priorities in the aftermath. The Hanjin workers and the government must not be left out of the decision-making process because this case is imbued with national public interest,” he said.

“This bankruptcy case must be handled methodically and delicately. The banking and shipping sectors must be protected from any aftershocks. I want verification from the BSP and SEC that the banks, their

shareholders, and depositors will not be adversely affected because of the Hanjin bankruptcy,” he added.

For its part, the Trade Union Congress of the Philippines said the government must not be complacent in cushioning the impact of the Hanjin bankruptcy on the affected workers.

“We urge the government officials not to be complacent. The government must prepare safety net program to save thousands of Hanjin workers who might lose their jobs in case Hanjin company shuts down due to its financial troubles. It could become a national economic and security disaster issue for the country if we just stand by and do nothing,” said TUCP president Raymond Mendoza.

“It’s not just the workers who might be affected. It’s also their families who will also suffer with the consequences. So, there must be a multi-government plan to cushion the impact of unemployment and loss of income just in case,” he added.

Companies the size of Hanjin are usually required by DOLE to have a retrenchment plan for their employees.

However, in the case of Hanjin, the TUCP is not aware of any contingency measure yet, Mendoza said.

Hanjin earlier filed a voluntary rehabilitation because of growing financial obligations to banks and financial institutions in Philippines and Korea. - Maricel Cruz and Vito Barcelo