TUCP backs calls for China pullout from reef

MANILA, Philippines — The Trade Union Congress of the Philippines (TUCP) supports the statements of Secretaries Delfin Lorenzana and Teodoro Locsin Jr. in demanding the withdrawal of Chinese naval, militia and maritime presence in and around Julian Felipe Reef.

The TUCP believes that the Chinese presence is “an encroachment both of the territorial integrity of the Philippines and a denigration of national sovereignty.”

“With these senior officials of government, we cannot, as an independent, self-respecting people, allow this brazen effrontery and continuing Chinese incursion into the Philippines, to remain unmet and unchallenged,” the group said.

It added that “not only is Chinese presence violating the rights of our fishermen to Philippine fishing waters and denying them their right to their livelihood and a decent living, the Chinese are endangering our national food security. Further, they are denying the fundamental right of the Filipino people to develop and fully exploit the bounties of our territorial seas, as well as that of our exclusive economic zone and all that is above and beneath.”

In calling on Filipinos to support defense chief Lorenzana and Locsin of foreign affairs, the TUCP noted that “too much has transpired in the near-term, including Chinese reclamation work in what are clearly Philippine territorial waters, characterized by a not-so-veiled build-up of a threatening external military presence.”

“That makes it imperative for Filipinos to now demonstrate unqualified, multisectoral support for the strong, categorical statement of both Secretaries Lorenzana and Locsin demanding that the Chinese leave and vacate what is ours,” TUCP stressed.

It noted that the Filipino people and workers are long-time friends of the Chinese working class.

“The long history of struggle of both the Filipino working class and the Chinese working class in our respective countries have been animated by both strong nationalist fervor and a rejection of foreign encroachment into our respective territories. Hundreds of thousands of Chinese now work in the Philippines, even as there are hundreds of thousands of Filipinos also working in Chinese territories,” the group said.

“We have both contributed to creating employment opportunities for each other’s peoples, as well as helping each other’s economies progress. This is the kind of confidence building and trust which our respective peoples should foster. It is in this spirit that we speak candidly and call on China to match deed to words, and respect, observe and abide with Philippine national sovereignty, if we, as peoples and nations, will truly keep the peace and build prosperity for all,” TUCP said.

Meanwhile, Sen. Risa Hontiveros said yesterday that President Duterte’s plan to use his “friendship” with Chinese President Xi Jinping to ease tensions in the West Philippine Sea “will not work as Beijing has never acted as a friend of Filipinos.”

She issued the statement following presidential spokesman Harry Roque’s assurance that Duterte would privately resolve the alarming intrusion of hundreds of Chinese militia vessels in the West Philippine Sea as he is “friends with Xi.”

“It would be a good thing if that (friendship) had been marked by mutual respect. But we’ve been too respectful that even if China has been blatantly doing wrong, we bow to them, and they’re not showing friendship or respect to us,” Hontiveros told CNN Philippines.

She said Beijing’s violations of the country’s sovereign rights and international laws have been flagrant – from enacting a sweeping and draconian coast guard law to driving away Filipino fishermen, from harassing an ABS-CBN news crew to building militarized artificial islands.

Hontiveros described Roque’s statements as a double-whammy against proper diplomacy and freedom of information.

“Malacañang, do something. China is becoming the region’s biggest bully. It’s time to unequivocally stand up to her. We must confront who supposedly is our best friend. Those vessels have been in our waters for the past many weeks. When will all these lies stop?” the senator said.

For her, the Duterte administration must be ashamed that the country does not have freedom of navigation in its own waters.

“And it’s infuriating to repeatedly hear statements from the highest office of our government, of our nation, that the Philippines and China will resolve these issues because we are ‘friends’,” Hontiveros said.

“So the call remains: we demand that every single Chinese vessel leave Philippine territory. Their continued and obstinate presence is a direct challenge to the international rules-based order in the oceans that has maintained stability in the region for so long,” she added. — Paolo Romero (The Philippine Star )  / Catherine Talavera

TUCP bucks proposal for creation of new pension system

Philstar / file photo

The Trade Union Congress of the Philippines (TUCP) is urging Congress to strengthen the current laws on retirement rather than creating a new private pension system, which, the labor group, said, may cost minimum-wage earners between P140 and P420 of their monthly salary.

Following the hearing on the proposed Capital Market Development Act or House Bill 8939 last Wednesday, TUCP Vice President Luis Corral said strengthening the Social Security System (SSS) and Government Service Insurance System (GSIS) laws are better than creating another monthly contribution pension system amid the increasing unemployment rate due to the Covid-19 pandemic.

“The simulations given by the DOLE for mandatory monthly contributions by minimum-wage earners of from anywhere from P100 to P450 will be a draconian imposition at this time. This amount will be over and above the already large compulsory contributions the worker makes to the SSS, Pag-IBIG and PhilHealth,” he said.

“Since we already have SSS and GSIS, why not just amend the charters of these existing institutions by creating a special investment fund window in both, which allows members of the respective funds who have savings to voluntarily invest these savings in the capital markets through the intermediation of fund managers. The charters of both should be tweaked to provide portability of such investment funds between the SSS and GSIS as the worker goes through the revolving door of transferring from one employment to another through his entire employment life,” he said.

Corral asked to Congress and economic managers to consider existing variables such as massive unemployment, millions of workers on “no work, no pay” arrangements, reduced working hours, job-sharing, low wages and the spiraling inflation rate as key factors in the consideration of the bill.

“We will all grow old, and will need social protection and social assistance, so as part of the process of designing or reforming any pension system, all sectors must be properly consulted,” Corral said.

House Bill 8938, which is now pending at the committee level, cites the portability aspect of the pension fund savings of the employees. The bill aims to reform the pension fund system in order to boost the capital market in the country.

Under the bill, a portable employee pension and retirement income (EPRI) account is created at the start of the employment of the worker.

The bill said both the employee and the employer should be obliged to mandatorily contribute to the EPRI Account. The amount of such contribution, which shall be fair, equitable, affordable, adequate and sustainable, shall be determined by regulatory authorities in an implementing rules and regulations.

Citing Department of Labor and Employment’s simulation, Labor Undersecretary Benjo Benavidez said if a private minimum- wage employee contributes 3 percent of his or her monthly salary, the deduction would reach P420 or P16 per day.

He added if a private minimum-wage employee contributes 1 percent of his or her monthly salary, the contribution would be at P140 or P5 a day.  “When it comes to affordability kayang kaya ito ng isang minimum-wage earner. We are still trying to run simulation with different salary levels,” Benavidez said.

Despite this proposal, Benavidez said retiring employees from the private sector are still entitled both SSS and those provided for under the Labor Code of the Philippines through RA 7641 or Retirement Pay Law of 1993 as the proposal only meant to supplement their pensions.

“[With this bill] we are [addressing] the defect of the existing pension provision of the Labor Code brought about by RA 7641 by providing portability and pre-funding [provisions],” he added.

For his part, Dr. Renato Reside of UP School of Economics said the feasible rate for minimum-wage earners is P300 monthly.

“With this bill, we are looking at feasible rate of P300 for minimum-wage earners and P100 for low-income earners,” he said.

For his part, Employers Confederation of the Philippines (ECOP) President Sergio Ortiz-Luis Jr. said the group is supporting the intention of the bill.

“The proposal looks okay with me, I have not seen so far any thing that we’re against with. In principle, we really support it. There’s really a need to rationalize the pension plan, this is one good way to do it,” he said.

Earlier, Ortiz-Luis told the BusinessMirror that the portability aspect of pension fund savings seems ideal “in principle,” saying he supports “anything that will make availment of the pension easier.” Ortiz-Luis said pension fund savings are usually wasted when employees decide to move to another company, saying it would be beneficial if the workers would be able to keep an account where they can continuously pour in their savings.

House Committee on Banks and Financial Intermediaries Chairman Junie Cua said he filed his HB 8938 to provide retirement and pension system that is fully funded, portable, more actuarially fair and stable that will enhance the current pension, at the same time, promoting and encouraging national savings and prudential investments on the part of employees.

“It has its own problems. Foremost of which, is the structure of the law and its implementing regulations. Republic Act [RA]  7641 does not require pensions to be prefunded, hence, pensions are paid out of pocket rather than built-up over the duration of employment, thus, no pool of investible assets is created,” he said.

“The pension benefits do not vest until they are 60 years old and on the last day of their employment. Because pension benefits only vest at their final place of employment, pensions are not portable, and the employee is at risk in the event of the employer’s bankruptcy. In addition, many are working in the informal sector which makes it difficult to enforce pension requirements under the current law,” Cua added.

Young generations

Meanwhile, Capital Market Development Council (CMDC) co-chairman Benedicta Du-Baladad said millennials and Generation Z are expected to benefit from this proposal.

“Based on a study, these people [millennials and Generation Z]…jump from one employer to the other 12 times during their lifetime of 40 years of working. The average of changing their employers is actually 12 times. If we follow the current law now nobody can get a retirement pay,” she said.

“Currently it is given when you are only about to retire and stay with your employer for about last five years and you are at least 60 years old. There is also no requirement for funding so it is a pay as you go and there are so many risks with that,” Du-Baladad said. - By JOVEE MARIE DE LA CRUZ

TUCP calls for wage subsidy in the wake of dismal GDP news

PHILIPPINE STAR/MICHAEL VARCAS

After Thursday’s announcement that the country experienced its worst economic decline since World War 2 last year, the Trade Union Congress of the Philippines (TUCP) on Friday called on the government to provide a wage subsidy to workers.

In a statement released on Friday, TUCP President and Party-list Rep. Raymond C. Mendoza said, “We have long been urging the Government to get ahead of the recession and put into place wage subsidies for those who are struggling to stay afloat. A wage subsidy is urgently needed, as the economy has not bounced back as predicted by the economic managers.”

The Philippine Statistics Authority on Thursday said that the country has suffered its worst gross domestic product (GDP) contraction since the Second World War, with the Philippine economy contracting by 9.5% in 2020.

This was largely due to the ongoing widespread lockdowns which were first imposed in March last year. A very stringent community quarantine which restricted most economic activity except for essential services was imposed during the first few months of 2020 as a way of controlling the coronavirus disease 2019 (COVID-19) pandemic.

The country has had over half a million COVID-19 cases since the pandemic started last year.

Labor Secretary Silvestre H. Bello III said on Thursday that they are not expecting any wage hikes this year as most establishments have been badly affected by the pandemic, making them unlikely to be capable of paying a higher minimum wage to workers. — Gillian M. Cortez

Workers call for price freeze

File photo / Manila Bulletin

The country's largest workers' group the Associated Labor Unions (ALU) has urged President Rodrigo Duterte to order a price freeze on basic commodities and go after profiteers due to increases in the prices of food and other staples.

ALU National Executive Vice President Gerard Seno said aside from extending price freeze and hunt down hoarders and price manipulators, the government should deploy more Diskwento Caravan and Kadiwa rolling stores to bring affordable basic food commodities to communities and work sites.

The workers group also sent a letter to the President seeking an immediate action by concerned government agencies to put in place effective price controls on basic commodities and to provide a wage subsidy for workers for their nutritional needs. 

“The prices of basic commodities increased as unscrupulous traders and middlemen and socially irresponsible retailers take advantage of the situation,” he said.

He said millions of workers were left with no recourse but to rely on noodles, 3-in-1 coffee and other substitutes just to fill their stomachs.

“Millions of workers, since March 2020, were either on "No Work, No Pay" hold-over arrangements, or compelled to undertake job-sharing or job-rotation agreements, or to be placed on no compensation furlough as employers extended the suspension of their business operations. Millions, in the worse case, were laid off. Truly, worker incomes took a severe battering, and what little savings they had, is long gone,” Seno said.

He said the P537 daily wage can hardly purchase a kilo of pork, including vegetables to meet the nutrition needs of a family of five.

The workers group appealed to Duterte to extend proclamation 1081 issued in the wake of Typhoon Ulysses indefinitely to freeze prizes of basic commodities, for the government to go after and to prosecute price gouging middlemen, traders and retailers and to shut down hoarders. 

Meanwhile, Senator Christopher Go urged the government Monday to immediately act on the rising prices of pork and other food commodities and boost the country’s food security amid the current pandemic. 

Go has been prodding the government to prioritize three important aspects towards COVID-19 recovery: (1) address hunger; (2) acquire sufficient, safe and effective vaccines for all Filipinos with utmost priority to the poor and vulnerable sectors as well as frontliners; (3) and provide more economic opportunities through jobs and other forms of livelihood. . 

To address the concern amid widely reported increase in prices of several meat products, Go has renewed his appeal for the Executive Department to issue an Executive Order to impose a ceiling on the prices of pork and chicken in the market.

The Department of Agriculture is one with Go in recommending price ceilings to prevent further price hikes in the country. 

It seeks to prevent opportunistic businesses from illegally manipulating the prices of basic necessities and prime commodities, thus helping the Filipino consumers who are still affected by the COVID-19 pandemic.

In addition, the DA also suggested utilizing its annual Buffer Fund under Republic Act 7581 to subsidize distribution costs of pork and chicken, effectively ensuring reasonable prices in the market.

Under RA 7581, the DA may use its Buffer Fund to purchase, import, or stockpile any basic necessity or prime commodity, devise ways and means of distributing them for sale at reasonable prices in areas where there is shortage of supply or a need to effect changes in its prevailing price.

Furthermore, the DA has proposed the tripling of the Minimum Access Volume on pork imports, augmenting local pork supply and, thus, keeping prices more stable. 

For a more long-term approach to food security in the country, the DA has also recently launched "ONE DA: A Holistic Approach to Agriculture and Fisheries Transformation" which serves as “an integrated framework with 12 key strategies to accelerate the transformation towards a modern and industrialized Philippine agriculture through an inclusive approach.”

To address the issue of price increase induced by animal-borne diseases, such as African Swine Fever, Duterte has issued Executive Order 105 which created the National Task Force on Animal-Borne Diseases. 

This seeks to undertake activities to prevent the entry of animal-borne diseases, control their spread and address other related issues.

Duterte also signed Executive Order 123 modifying the rates of import duty on certain agricultural products under section 1611 of Republic Act 10863, otherwise known as the Customs Modernization and Tariff Act. 

The said EO, in effect, retained the reduced five percent tariff rates imposed on mechanically deboned meat of chicken and turkey, a key ingredient of low-priced meat products often consumed by ordinary Filipinos.

“This is most welcome and I support it. This will have a huge impact on keeping prices low by keeping the tariffs low and preventing any inflationary effect,” Go said previously. 

A survey conducted by the Social Weather Stations in November 2020 revealed that an estimated four million families reported involuntary hunger at least once in the past three months prior to the study. The number, though, is lower than the previous data gathered by SWS in September of last year where some 7.6 million reported involuntary hunger due to the pandemic. - Vito Barcelo and Macon Ramos-Araneta