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What to see this week

5 films to see on the week of January 24, 2020 — January 30, 2020

Bad Boys for Life

COPS Mike Lowery and Marcus Burnett team up to capture the leader of a Miami drug cartel. Directed by Adil El Arbi and Bilall Fallah, the comedy stars Will Smith and Martin Lawrence. Indiewire’s David Erlich writes, “El Arbi and Fallah have a firm grip over the plot, and tensions escalate at such an even-keeled pace that you might wish the directors luxuriated a bit more in its quieter moments; when major characters bite the bullet, it can feel like viewers care about them more than the movie ever did.”

MTRCB Rating: R-13

Spies in Disguise

WHEN super spy Lance Sterling is turned into a pigeon, he relies on scientist Walter Beckett as they go on a mission to save the world. Directed by Troy Quane and Nick Bruno, the animated film features the voices of Will Smith, Tom Holland, Rashida Jones, and Ben Mendelsohn. rogerebert.com’s Christy Lemire writes, “… it might even give you something to talk about with your relatives of varying political persuasions.”

MTRCB Rating: G

Vanguard

AN ACCOUNTANT seeks help from the security company Vanguard after he is targeted by a powerful mercenary organization. Directed by Stanley Tong, the film stars Jackie Chan, Yang Yang, and Miya Miqui.

MTRCB Rating: PG

Nightshift

A YOUNG woman gets trapped in the morgue on her first day of work when the dead show signs of resurrection. Directed by Yam Laranas, the film stars Yam Concepcion, Levy Tram, and Xiaoming Huang.

MTRCB Rating: R-13

D’ Ninang

THE MATRIARCH of a gang of thieves reunites with her estranged daughter who is a firm believer of everything right. Directed by G. B. Sampedro, the film stars Ai-Ai de las Alas, Kisses Delavin, and McCoy De Leon.

MTRCB Rating: G

Performance improvement plan as the Sword of Damocles

Our department head sent me a schedule of what to improve in my work performance days after giving me a failing mark in my annual appraisal form. The PIP includes specific targets, standards, and a timetable and I was given only two months to improve my performance. Is it the right time to resign or do my best under the circumstances? — Polka Dots.

Many people live their lives like the high-rise construction worker who was carelessly walking on an upper beam without a safety harness. One day, he accidentally fell off. As he was falling, a man on the 21st floor cried out loud: “What’s happening? How are you doing?” The man in his usual boastful ways replied: “So far, so good!”

Just like our devil-may-care construction worker in this story, regular workers tend to slack off until judgment day when they’re issued a formal, detailed warning about their poor work performance. When this happens, that means management is serious about everything and is following the rules on due process before one is dismissed from employment. Usually, it’s being done through the issuance of a PIP (performance improvement plan). It’s like being sent back to probationary status.

But what’s wrong with your own PIP? An ordinary PIP carries with it the usual three-month re-trial period, just like when you were on probation before but on a shorter time scale. Sometimes, generous benevolent management extend it to six months, depending on your human resources policy. However, if your management insists on a two-month plan, it means they can’t wait any longer. It’s either you shape up or ship out at the soonest possible time.

Therefore, only you who can answer your own question. Do you have the energy or motivation to move mountains in two months? Or do you have many options to consider other than your current employer? If not, then better to reassess your plan that may include refurbishing your curriculum vitae and start looking for another job elsewhere, if not consider starting a business.

THREE IMPORTANT CONSIDERATIONS
A performance appraisal is often viewed as a difficult exercise for both the boss and his people. It becomes doubly difficult when a PIP is issued and becomes your Damocles Sword. At times, you can’t avoid the emotional part of it all. It’s tricky. That’s because you can’t simply summarize with few check marks or brief sentences the specific performance of people. With this in mind, the following considerations may help you assess your chances of dealing with your PIP:

One, don’t be deceived by the formality of the PIP. You’re being placed on PIP to make one’s termination of employment legally compliant. Chances are, and in real work life situation, your boss may have already made up his mind to keep you out of the organization. This means, no matter what you do, even if you think you’re capable of turning the tables by doing your best, a dissatisfied boss will always be dissatisfied and out to make it difficult for you to recover.

Why not? If your boss cares about you, he should have called your attention a long time ago and not at the end of the annual performance review cycle, when you may have little margin of wiggling out of the situation. If he truly cares about your career goals, he should have coached you through a periodic one-on-one counseling, if not arrange for a frequent supervision meeting or, much better, asking you what resources you need to improve your work.

Two, look back to discover how you may have crossed your boss. It could be that you may have said something bad about your boss to some purported friends within the organization who reported your back-stabbing to him. In the corporate rat race, everything is possible especially for some people who are interested in taking over your position through unethical means.

If your boss discovers your disloyalty, then that could be the end for you. The boss may not even confront you to discover the truth, but simply accept the negative report. He may not even bother to study the “root causes” of it all. While we expect some form of objectivity from anyone at the management level, you can’t expect much from a biased boss.

Last, consider asking management for a safety net. If you decide that resignation is the best option for you, appeal to the goodness of their hearts by asking for a monetary assistance to help you and your family tide over. To my mind, the reasonable amount is equivalent to three months of one’s basic pay. Also, seek for a tax-free monetary assistance, if possible. In addition, seek for an early effective date of your resignation, so you can start exploring other jobs elsewhere.

Whatever happens, don’t burn the bridge. Keep communications lines open and remain positive and upbeat. It’s difficult, but that’s the only thing you can do under the circumstances. If you’re looking for a new job, the next best thing is for you is to protect the integrity of your employment history and your relationship with your boss, no matter how shaky it has become.

CONCLUSION
Bringing back the good old days is difficult, if not impossible. The past is past. If you’ve committed a mistake or many mistakes in your work performance or relationship with people, including your boss, then there’s no point in wallowing in misery. Let go of the past. Start living your life to the fullest by actively looking of what’s in store for you in the future. Look at the future with a fresh set of eyes.

Read many inspirational stories to keep you moving. Do a lot of networking, either on social media or through eyeball-to-eyeball meetings. Just keep on moving without necessarily spending so much money. Your course of action depends much on your current personal circumstances, like your age or whether you’re single or married with kids of school age. Whatever your status in life, there are always new opportunities that you have to discover somewhere. That is, if you care to move on without anger in your heart.

ELBONOMICS: The best place to start anew is where you’re currently seated.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

SEC warns public against two ‘Billford’ investment schemes

THE Securities and Exchange Commission (SEC) is warning the public against investing in Billford Trading Co. and Bill Ford VIP Trading, Inc., which it found were violating the Securities Regulation Code.

In an advisory posted on its website Thursday, the country’s corporate regulator said the two companies are operating without the necessary registration and licenses to solicit investment.

“[T]he public is hereby advised to stop investing in the investment scheme being offered by the said entities and by Billy Ford Delos Santos Andrada,” it said.

The SEC said Billford Trading and Bill Ford VIP Trading are both operated by Mr. Andrada. It operates by offering the public to invest in pigs, where buying one pig for P2,500 is supposed to earn the investor P4,375 within three months.

The returns increase depending on the number of pigs a person invests in, such that by investing in five pigs worth P12,500, one is supposed to get P21,875 in exchange. Cashing in P100,000 for an investment in 40 pigs is equivalent to P175,000 in return.

“The public is hereby informed that Billford Trading Company and Bill Ford VIP Trading, Inc. are not authorized to solicit investments from the public as these entities did not secure prior registration and/or license to solicit investment…” the SEC said.

The Securities Regulation Code requires securities to be registered with the SEC before being sold to the public. Anyone buying or selling the securities must also be registered with the SEC.

The violation of the rules is equivalent to a fine of P5 million at most or imprisonment of 21 years, or both, for those who acted as salesmen, brokers, dealers or agents for the concerned companies.

“[T]he names of all those involved will be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be correspondingly assessed,” the SEC added. — Denise A. Valdez

Your Weekend Guide (January 24, 2020)

Pedro Calungsod the Musical

THERE will be performances of San Pedro Calungsod the Musical at the Cuneta Astrodome in Pasay City on Jan 24., St. Scholastica’s Manila on Feb. 22 and 29, and at the Music Museum on Feb. 25. Directed by Jose Christie G, Nombres and starring Gerald Santos, it is a play about the life, faith, struggles, death and miracles of Blessed Pedro Calungsod. For tickets, visit ticket2me.net or call (0929-329-3438, 0928-478-2957). A portion of the show’s proceeds will go to the victims of the Taal Volcano eruption.

PPO Concert Series V

THE Philippine Philharmonic Orchestra (PPO) continues its 37th concert season with Concert Series V on Jan. 24, 8 p.m., at the Cultural Center of the Philippines’ Main Theater. The show features bassoonist Adolfo Mendoza. Dvorak’s Serenade for String Orchestra op.22 in E Major, Mozart’s Bassoon Concerto in B-flat Major, and Franck’s Symphony in D minor are in the program. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Chinese New Year at mall

MEGAWORLD Lifestyle Malls and Lucky Chinatown welcomes the Year of the Metal Rat with a celebration highlighted by lucky rituals, cultural presentations, live performances by OPM performers, fireworks, plus shopping and dining deals. The Grand Chinese New Year Countdown to 2020 is on Jan 24, starting 7 p.m. at the Atrium with performances from Leanne & Naara and IV of Spades. On Jan. 25, noon, there will be a meet-and-greet with Pickachu and Eeve, followed by an astrological forecast segment by Johnson Chua. For details call the Lucky Chinatown Concierge at 7576-8139 or visit www.LuckyChinatownCNY2020.com.

Chinese New Year at Bonifacio High Street

BONIFACIO High Street and Chinatown TV have partnered for a Chinese New Year celebration set to run on Jan. 25 and 26. There will be a Chinese Zodiac Astrology Installation, a dragon dance, traditional Chinese performances, Katipunan Weekend Market’s Chinese New Year fair, workshops, plus a fireworks display. Those who spend P2,000 or more from any Bonifacio High Street store with Luck or Grub purchase promotion can exchange receipts for a chance to choose between a five-minute consultation with a feng-shui or tarot master or get a lucky ang pao with a surprise treat from Din Tai Fung or Serenitea.

Collage workshop at MCAD

ARTISTS Gary-Ross Pastrana and Kaloy Olavides will lead a free lecture and workshop entitled “The Craft of Contemporary Collage” at the Museum of Contemporary Art and Design of the De La Salle-College of Saint Benilde on Jan. 25 at The Loop of the College’s School of Design and Arts Bldg.. The workshop is a four-hour session, which will run from 1 to 5 p.m. For details call 8230-5100 local 3897 or e-mail mcad@benilde.edu.ph.

The Quest for the Adarna

REPERTORY Philippines’ Theater for Young Audiences presents a musical retelling of the Philippine folk tale “Ibong Adarna.” The Quest for the Adarna has performances until Jan. 26 at Onstage Theater, Greenbelt 1, in Makati. In the kingdom of Berbania, the king falls mysteriously ill and can only be healed by the song of the mythical bird, Adarna, which can be found in its mountain home. His three sons take turns attempting the dangerous journey to help their father. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

Bridging the generation gap

Baby Boomers versus Millennials. This has been a trending topic lately from print to internet to social media. Ironically speaking, while there’s a miscommunication between these two generations, majority of the millennials are children born and raised by my fellow boomers.

BABY BOOMERS DEFINED
My generation was tagged as such due to the increase of birth rates between 1946 to 1964 right after World War II. It was brought about by hopeful perspective that the world condition will be better and was proven by the improvement of economies, businesses and jobs. This generation also brought relative prosperity to the economy, the reason why it was considered as an economically influential generation. Some even claimed it to be the greatest generation, to which of course other generations might protest. Boomers love to invest — properties, cars, appliances, gadgets and other items due to their high spending power.

The magazine The Economist even coined that the decade of the “young old” begins with 2020 as predicted by John Parker. The young old or “yold” term originally came from Japan, pertaining to people with ages between 65 to 75. At this point in time, many are retiring but life expectancy for this batch is longer. With more energy and funds for the boomers, it is the time to travel, start a business or move to the suburbs and enjoy the scenery. Yold or boomers per se are retiring but not really retiring. A lot will continue to work, stay socially engaged and will still change the world. Although health will at this stage for some deteriorate, many yold have 3.7 years of increased life expectancy especially those who stay busy working. A German study found that people who remain at work after the normal retirement age manage to slow the cognitive decline associated with old age.

The yold are challenging the traditional expectations of the retired people who simply wear slippers and look after grandchildren. Some have even gone back to continuing education with an increase of enrollees compared to university enrollees, the present reality of Harvard. They also change the perspective in pension as the yold aims to manage their pension receipts more actively. In time, yold will be back in the industries but only if people’s attitudes towards old people change and appropriate government policies are enacted. High numbers of healthy yold will change drastically their health spending.

MILLENNIALS DEFINED
This is the so-called “criticized and entitled generation,” “me generation,” born in between 1981 to 1996, known to be the batch who prefers work and life balance. My staff belong to this generation and they say that most of their peers, themselves included, prefer spending their hard-earned money in travels, expensive restaurant and convenience (e.g. grab for transportation, coin laundry instead of doing it themselves to name a few). This generation was also perceived to possess a high tendency of delaying their adulthood because most of them are living with their parents for longer period as compared to previous generation. At this point though, a great minority of millennials, just like here in my workplace are taking over.

In the next 10 years, the millennials will be dominating the work force globally at around 40% of the population, Gen X (sandwiched between boomers and millennials) will be at around 26% and most of the baby boomer’s will be facing retirement. Gen Z (1997 to 2012) or digital natives will also start joining the work force by then.

This phenomenon is defined as a demographic shift expected to bring changes across the globe in the next decade. Despite delays in their “adulting,” millennials are expected to have the fastest growth in net wealth in the next decade. Most of them will also enter family formation age and will be looking to purchase their own homes. They could be a catalyst for change, as reported by Cushman and Wakefield’s “Demographic Shifts: The World in 2030.”

On the other hand, the boomers’ retirement is also expected to bring shift in certain industries probably in leisure travel, traditional retail and health care. For Generation Z, they will expect technology to be seamless. Experiential retail and e-commerce are two industries that are seen to benefit from Gen Z’s.

The risks? Boomers are taking the back seat as people claim but not really. Gen X which is also the MTV generation has gained a reputation for entrepreneurship. Millennials have to man-up so to speak and Gen Z should be trained to develop their emotional and social skills.

For a more sustained future, these generational players should be conscious of the brewing gaps because of the difference in outlook, opinions, beliefs, skills, attitudes and behavior each age group brings, especially in the workplace. The challenge is to build solid bridges and strike a balance that will allow each generation to build on their strengths and deemphasize their weakness. It all starts with understanding each other and a willingness to meet somewhere in between.

As the old adage says, “there’s nothing permanent in the world but change.” With ample time to prepare and faced with the reality that society will remain to be a mix of different age groups and expectations, the world must be ready for what lies ahead. And it all starts with the age groups making a conscious efforts to first accept the differences, and to move beyond limited expectations. The key here is conscientious communication as in the end, we are not competitors but collaborators for a better world.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Benel D. Lagua is Executive Vice-President at the Development Bank of the Philippines. He is an active FINEX member and a longtime advocate of risk-based lending for SMEs.

How PSEi member stocks performed — January 23, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, January 23, 2020.

 

Exporter usage of EU’s GSP+ preferential scheme at 25%

THE Philippines’ utilization rate on its preferential trade scheme with the European Union (EU) is estimated to have remained at 25%, Delegation of the European Union to the Philippines Chargé d’ Affaires Thomas Wiersing told reporters at a press conference on Monday.

Under the GSP+ scheme, the Philippines enjoys zero or reduced tariffs for over 6,000 export products.

The estimate was released ahead of the official tally of Philippine availments of the Generalized System of Preferences-Plus for 2019.

“While GSP+ utilization rate for 2019 has yet to come out, it is estimated that around 25% of total Philippine exports to the EU — approximately two billion euros — benefits from the EU GSP+ trade preference, particularly in agri-products,” he said.

Mr. Wiersing said that he hopes the utilization rate will improve in 2020.

“It is also hoped that with the implementation of the REX system of self certification by the EU beginning January 2020, Filipino exporters will have faster processing time for their documentary requirements specific to GSP+ specific products.”

The REX guidelines simplify export processes by allowing exporters to certify preferential origin through a Statement of Origin.

The biennial GSP+ report by the European Commission, which assesses partner countries’ commitments to international conventions such as human rights and freedom of expression, is expected to be released early this year.

“The report will cover the 2018-2019 progress of the Philippines in the implementation of 27 international conventions relating to human rights, labor rights, environment, and good governance,” Mr. Wiersing said.

Meanwhile, Mr. Wiersing added that there is a worrying deterioration in the Philippines’ attractiveness to foreign direct investment, citing factors such as a decline in business confidence due to lower consumer demand, stiffer competition, and uncertainties surrounding tax reform.

“Despite the efforts and successes of the government to streamline processes to attract more businesses to locate and invest in the country, the business climate still requires an upgrade,” he said. — Jenina P. Ibañez

Duterte gives go-ahead to review UP Technohub deal

PRESIDENT Rodrigo R. Duterte has given formal approval to initiate a review of an agreement to develop land owned by the University of the Philippines (UP), his spokesman said, adding to the list of allegedly one-sided deals entered into by past governments that has called into doubt the viability of long-term agreements undertaken by some of the country’s biggest firms.

Salvador S. Panelo, at a briefing in Malacañang Tuesday, said the President approved the review of Ayala Land, Inc.’s (ALI) contract to develop a 20-hectare site on Commonwealth Avenue opposite the UP Diliman campus in Quezon City, a site which became the UP Ayala Land Technohub.

Mr. Panelo first floated the idea of a Technohub contract review in a radio interview Sunday, citing rents that were below market levels.

The Technohub deal becomes the second Ayala Group contract currently under review by the government for “onerous” provisions, after the government questioned the privatized water contracts for Metro Manila agreed with two providers in 1997, including Ayala-controlled Manila Water Co., Inc.

The crisis of confidence among holders of government contracts has sent its economic team scrambling to defuse tensions with its private-sector partners.

The National Economic and Development Authority (NEDA) said that while the government should not tolerate deals with the private sector containing “onerous” provisions, it acknowledged that contract reviews need to strike a “balance” between obtaining fair terms from concession holders and respecting contracts.

“The bottom line is that it’s really a very delicate balancing act. We do want to send a strong signal that we will not be tolerating these onerous contracts,” NEDA Undersecretary Rosemarie G. Edillon said in a news conference in Pasig City Thursday.

“In fact, I think one of the lessons going forward is that there has to be some sunset clause, a review clause at least, in these contracts (to signal that) there will be changes… that far ahead into the future. But rest assured that government knows that this is really a very delicate balancing act,” Ms. Edillon added.

Socioeconomic Planning Secretary Ernesto M. Pernia said the government should also consider the input of other sectors such as business groups and credit rating firms in addressing issues on contracts with “onerous” provisions.

“We have been getting some comments from businessmen as well as the credit rating agencies. I guess those remarks, those comments need to be considered by the authorities,” Mr. Pernia said at the same event.

Fitch Solutions Group Ltd. and S&P Global Ratings declined to comment when approached by BusinessWorld.

Asked if NEDA has recommendations on the matter or plans to conduct a study on possible legislation, Mr. Pernia, who heads NEDA, said “If we are asked, then we will oblige and heed the request.”

The Palace on Thursday assured that the government’s plans to review onerous contracts made with various private entities should not dampen investor confidence.

Mr. Panelo said in his Palace briefing that “the government will not be reckless in stepping into any contract that is not contrary to law.”

“Any pronouncement that says that the government will examine, evaluate or review onerous contracts is not something that businessmen should be afraid of — because it is the duty of the government precisely to protect the interests of the Filipino people.”

Ms. Edillon said NEDA is not involved in the contract review process. She added NEDA only steps into the process when the contracts involved are for projects approved by the NEDA Board or if there are concerns on price escalation provisions.

In a report last month, Fitch Solutions Macro Research, a unit of Fitch Group, flagged the government’s sudden move to revoke its contract with two water concessionaires as a “high regulatory risk” for the private sector when contracting with the government.

Fitch Solutions said investor confidence will be affected in the short term but is expected to be mitigated over the long term as the country improves its public-private partnerships (PPPs) framework.

Following the review of “onerous” contracts with the two water contractors, Manila Water and Maynilad Water Services, Inc., the Department of Finance (DoF) announced that it found another “onerous” contract involving a lease held by Chevron Philippines, Inc.

Regulators have decided to terminate the corporate life of the property lessor, Batangas Land Co., Inc. (BLCI), with which Chevron Philippines agreed the contract. By shortening the corporate life to 2021, the government will then be able to exercise “full ownership, control, and rights” over a property in Batangas.

Chevron Philippines has occupied for more than four decades a 120-hectare or 1.2 million square-meter (sq.m.) property in Batangas. According to the DoF, Chevron pays the equivalent of 74 centavos per sq.m. monthly, well below the current fair-market rental estimate of P17.90 per sq.m.

In response, Chevron Philippines said it is open to further communication with the government.

Meanwhile, the Department of Justice and other agencies are still drafting the new water contracts without “onerous” provisions. — Gillian M. Cortez and Beatrice M. Laforga

P300 million allocated for Occidental Mindoro farm, fisheries programs

THE Department of Agriculture (DA) said it will provide farmers and fisherfolk in Occidental Mindoro about P300 million worth of projects and programs in 2020.

In a statement, Agriculture Secretary William D. Dar “committed P70 million for agriculture and P54 million for the fisheries sector. He also allocated P51 million for unconditional cash transfers, which will be released under the Rice Farmers’ Financial Assistance (RFFA) Program.”

“This year, with the excess tariff revenues following the implementation of the Rice Tarrification Law, DA will implement the second round of RFFA. Starting mid-February, more than 10,000 farmers will receive P5,000 from the department,” Mr. Dar noted.

The DA will also invest P100 million for Solar-Powered Irrigation Systems (SPIS) in the province.

In a separate statement, the DA said that Oriental Mindoro will receive P100 million for crop production and P6 million for animal production in 2020, as well as P115 million from the Rice Competitiveness Enhancement Fund (RCEF) in the first half.

The DA through the Development Bank of the Philippines also distributed P53 million worth of cash assistance to farmers in the province. More than 10,000 farmers tilling half a hectare to two hectares will also receive the P5,000-financial assistance under RFFA.

“Starting now, the 28,000 hectares will be devoted to rice production and the assistance is in the form of agri-machinery and equipment, seed, training and credit,” Mr. Dar said.

He said that there will also be “funding support for the upgrading of rice processing centers in the province, the establishment of a food terminal covering in the municipality of Victoria, and Farm-to-Market road Projects,” as well as “for the upgrading of Food Technology Laboratory and Tissue Culture Laboratory for saba and calamansi in Mindoro State College of Agriculture and Technology.” — Vincent Mariel P. Galang

Polish poultry imports banned after bird flu outbreak

THE Department of Agriculture (DA) has banned imports of Polish domestic and wild birds and their by-products following an outbreak there of the H5N8 variety of Highly Pathogenic Avian Influenza (HPAI), also known as bird flu.

In memorandum order no. 5, series of 2020, Agriculture Secretary William D. Dar laid out measures against imports of such products from Poland.

The ban extends to ”poultry meat, day-old chicks, eggs, and semen” and calls for the “immediate suspension of the processing, evaluation of the application and issuance of Sanitary and Phytosanitary import clearance (SPSIC) to the commodities,” as well as the termination and confiscation of imports of such products, except heat-treated products, by the DA Veterinary Quarantine Officer at all major ports of entry.

Frozen poultry meat slaughtered or processed 21 days prior to the outbreaks are allowed to enter the Philippines but are subject to veterinary quarantine rules and regulations, and are subject to the conditions under Article 10.4.19, 10.4.20, and 10.4.26 of the World Organization for Animal Health (OIE) Terrestrial Animal Health Code (2019).

Based on the report submitted to the OIE by Poland’s chief veterinary officer with its Ministry of Agriculture and Rural Development, the outbreak was detected on Dec. 31. The disease previously occurred in Poland in 2017. As of Jan. 22, there were six outbreaks recorded, as confirmed by the National Veterinary Research Institute of Poland.

In the Philippines, the last outbreak of bird flu was in August 2017, with the first case in San Luis, Pampanga, which later reached five neighboring farms. Indications of the occurrence of the virus were observed in April that year. Upon the confirmation of the outbreak, 200,000 chickens, quails, and ducks were culled. — Vincent Mariel P. Galang

Public-hospital staffing could be Universal Health Care’s biggest hurdle

By Gillian M. Cortez
Reporter

NURSES are vital for the successful implementation of universal health care (UHC). The World Health Organization (WHO) has highlighted the importance of investing in nurses to execute UHC properly. It’s a respected profession that has earned a reputation for also being largely overlooked, to the extent that many practitioners need to move overseas to earn a living.

If we accept that well-governed countries provide accessible health care to their citizens, the Philippines seems far off from that ideal. Political considerations interfere with efficient health care delivery even without UHC, and it’s an open question how the government will manage such a system — and that job includes ensuring there are enough health workers to carry it for a population of 110 million and growing.

UHC was finally signed into law on Feb. 20, 2019, giving all Filipinos automatic membership in the Philippine Health Insurance Corp. (PhilHealth). Setting aside for the moment PhilHealth’s own capacity to support UHC, which is a funding issue as well as a governance one — does the Philippines have enough health workers to pull it off?

MANPOWER OVERVIEW
Long before the Philippines conceived of UHC, it was an exporter of manpower. According to the Philippine Statistics Authority (PSA), there were 2.3 million Overseas Filipino Workers (OFWs) in 2018, with their remittances for the year valued at P235.9 billion. According to the WHO, 17,000 to 22,000 health professionals leave the Philippines each year for overseas work. Between 1993 and 2010, 29% of the departures among health professionals were nurses.

This “brain drain” has long been a feature of the employment scene, and has become more of a problem as UHC approaches.

“We have a surplus of nurses but it’s tragic because we produce so many nurses (to serve) the demand abroad… People leave because they lack fulfilment. They feel frustrated with the corruption, they feel frustrated with the equipment and services,” Medical Anthropologist Michael L. Tan told Businessworld.

According to the PSA, in 2016, graduates from higher education institutions numbered 41,805 in medical and allied programs. This total is the entire population of students in all health care fields, from undergraduate to doctoral programs. The student population in such programs, including underclassmen, was 203,561 in 2016.

A nursing graduate needs to pass the nursing board exams to be licensed by the Professional Regulation Commission (PRC). PSA said that in 2016, 13,019 out of 28,504 examinees passed the board exams. In more recent years the flow of licensure applicants has been reduced; the 2019 Board Exams, for instance, had 13,816 examinees and 7,627 passers.

Private Hospitals Association of the Philippines (PHAPi) President Rustico A. Jimenez said the K to 12 curriculum held back a few high school cohorts, a factor which should have been considered in the timing of UHC.

“The (government) should have studied it more because it implemented the K-12. It did not anticipate that we will have a shortage because of K-12,” he told BusinessWorld.

MISPLACED PRIORITIES
ThinkWell Philippines Senior Policy Advisor and Deputy Director for Health Financing Maria Eufemia C. Yap, said the lack of nurses should trigger an examination of priorities because nurses and midwives are neglected while the system values the creation of more doctors.

“It’s a radical thing to say but maybe we don’t need additional specialists; maybe we really need more generalists. Maybe our nurses and our midwives and other health workers will rethink leaving (the country) if they are not as overburdened,” she said in an interview with BusinessWorld.

Labor Secretary Silvestre H. Bello III said in June that he has discussed ways to minimize deployment of nurses overseas with the Philippine Overseas Labor Administration (POEA) because the UHC program needs nurses to stay in the Philippines.

But other countries need immigrant nurses too, particularly if their populations are aging or their own young people do not want to go into the profession. The Department of Labor and Employment (DoLE) has signed or is in the process of signing bilateral agreements for nurse deployment to Germany, Japan, and Canada. DoLE has also encouraged Filipino health workers to try their luck in the UK, which has removed its quota on overseas health professionals.

IN THE SAME BOAT
The Philippine Nurse Association (PNA) has called on the government to improve nurses’ rights in the Philippines, triggered by a massive retrenchment of contractual nurses at a Cebu hospital. Current labor standards do not fully protect workers especially in terms of security of tenure, it said, putting nurses in the same boat as workers lobbying for the Security of Tenure Bill.

“This mirrors the worsening scenario of our health care system today. Current laws and practices and even hospital policies are insufficient to protect not just the rights of our nurses but also that of our ordinary citizens whose right to quality health and even to safety (has been denied them),” PNA said in a position paper issued in August.

“Despite their significance nurses feel they are not being valued. For years, they have been clamoring as victims of unfair labor practices and been deprived of just compensation, (suffer from) undignified treatment at work, and poor working environments. Yet, reported incidents of exploitation and unfair labor practices among nurses persist and are increasing,” PNA added.

According to data from the Bureau of Local Employment (BLE), registered nurses working in the private sector receive monthly pay of P8,000-P13,500 on average.

The combination of unfair labor practices and the opportunity to work overseas for far more makes for a serious retention problem. The bottom-line question thus becomes, does the Philippines have enough nurses for UHC?

BUDGET HEARINGS
During the 2020 budget deliberations of the Department of Health (DoH), concerns were raised on how many public-sector health workers will still be at their jobs next year. With 2020 as the first year of UHC implementation, the DoH said that its ideal budget to handle all contingencies is P257 billion. As of this writing, legislators have set the department’s budget at P96 billion.

Legislators said that funding level is sufficient to retain more than 10,000 workers under the DoH’s Human Resource for Health Deployment Program (HRHDP).

Government health workers with job orders or are contractuals, numbering 7,107 nurses, 597 medical technologists, and 202 dentists, will all have jobs in 2020 at this funding level, according to the chairman of the Senate Committee on Health, Christopher Lawrence T. Go.

Pretchell P. Tolentino, head of the Learning and Development Division under the DoH’s Health Human Resources Development Bureau, said that while having more health personnel will always be beneficial, DoH currently employs enough staff to implement UHC next year. She added however, that the problem is always the annual funding level and the “plantilla” positions available — the regular staffing levels authorized and allocated for.

“We have enough actually. In terms of graduates we have enough but the issue is the distribution and the absorptive capacity. We need them but we cannot pay for them because there are not enough regular positions,” she told BusinessWorld.

FOR THE FORESEEABLE FUTURE
Mr. Jimenez of the hospitals association said private hospitals are also required to maintain staffing levels in order to keep their operating permits — for now, though there could yet be a shakeup in the future.

“We have manpower at this time because DoH won’t give you the license to operate unless you qualify for good service which is (directly affected by) the manpower at your hospital,” Mr. Jimenez said.

He added, “There is a requirement of 50 beds and a certain number of nurses. You cannot just get a permit to operate if you don’t fulfill the manpower requirement.”

Over the next 10 years or so as UHC rolls out, it is difficult to see how the personnel situation will develop for the over 1,000 hospitals in the Philippines.

Mr. Jimenez said one possible scenario that could overwhelm private-hospital capacity is if patients who could not otherwise afford private hospitals come to prefer such institutions, given their newfound financial capacity.

Meanwhile, public hospitals have their own staffing problems. According to the Philippine Nurses’ Association, the nurse-to-patient ratio in government institutions is 1:60, some distance away from the DoH’s ideal ratio of 1:12.

DISTRIBUTION
Another problem for the UHC is where health personnel are deployed. According to the PSA, in 2016, government hospitals employed 6,009 nurses, with 1,103 based in the National Capital Region (NCR). The Autonomous Region in Muslim Mindanao (ARMM), now the Bangsamoro Autonomous Region in Muslim Mindanao or BARMM) had only 96.

Metro Manila also had the most government doctors (718) while BARMM had 67.

These imbalances are meant to be addressed by the UHC Law, or Republic Act 112233, Section 23 of which requires the DoH to draft a National Health Human Resource Master Plan. Section 24 of the law also provides for a National Health Workforce Support System that will prioritize deployment of health personnel to Geographically Isolated and Disadvantaged Areas (GIDAs).

PAY ISSUES AND THE SUPREME COURT
The Supreme Court ruled in October that public-sector nurses will start at Salary Grade (SG) 15, which pays P30,000 a month, while overturning an executive order issued by President Gloria Macapagal-Arroyo, which called for public-sector nurses to start at SG 11, earning a little over P20,000 monthly.

Legislators as of this writing are still trying to find ways to allocate funds for the 2020 nurses’ wages, while the Department of Budget and Management (DBM) is studying the impact of the SC ruling.

DoLE has also intensified labor inspections after receiving reports of nurses in major hospitals working extreme overtime and not receiving appropriate wages. Mr. Bello also said that he is in talks on how to adjust nurses’ salaries, which can only come through by legislation.

INCENTIVES TO STAY
Mr. Tan said there needs to be an incentive scheme that encourages nurses to stay. “The turnover is so fast, everyone wants to work abroad. No one wants to work here. So we should find a way (to provide) incentives for people to stay.”

Ms. Yap said stakeholders must evaluate staffing to identify gaps and redistribute resources if necessary.

“(Stakeholders need to) revisit roles and decongest and deload people and to rationalize the different components of health delivery so we can really determine where the need is greatest,” she said.

It is by no means guaranteed that the UHC rollout will be seamless but whatever the outcome, it will serve as a lesson for the estimated decade-long UHC transition period. UHC is challenging enough on its own, but the question is whether the government can also resolve the pre-existing conditions like retention, labor practices, funding, and imbalances in health care training and deployment.

Budget department sets spending deadlines for cash-based 2020 budget

THE Department of Budget and Management (DBM) has set deadlines for spending the 2020 Budget, requiring agencies to wrap up capital outlays for infrastructure projects by the end of the year while giving them until the end of 2021 or later to disburse funds to finance the completion procedures for these projects.

The DBM, which is implementing a cash-based system for budgeting to ensure that funds are spent promptly, said the guidelines will “synchronize fund release with the implementation of the overall physical and financial plans, targets and schedules submitted by the departments, agencies, and/or operating units.”

The national budget circular No. 578 was issued on Jan. 6, the day the P4.1-trillion budget was signed. A copy of the circular was published on the DBM website Wednesday.

General Appropriations Act items deemed valid for obligation until Dec. 31, 2020 are infrastructure capital outlays (ICOs), including subsidy releases to GOCCs for infrastructure projects; as well as items associated with maintenance and other operating expenses.

Given a Dec. 31, 2021 deadline were spending items for the completion of construction, inspection, acceptance and payment for infrastructure-related capital outlays.

Delivery, inspection, acceptance and payment for maintenance and other operating expenses and other capital outlay items should not come later than June 30, 2021.

Meanwhile, budget items listed as financial assistance to local government units (LGUs) released during the year are also available for disbursement until Dec. 31, 2021.

“After the end of validity period, all unreleased appropriations or unexpended or undisbursed funds shall revert to the unappropriated surplus of the General Fund… and shall not be available for expenditure except by subsequent legislative enactment,” according to the circular.

The circular was addressed to departments, agencies, state universities and colleges (SUCs), GOCCs and LGUs, including agencies classified under the Constitutional Fiscal Autonomy Group.

This year’s budget is 12% higher than 2019’s P3.66-trillion budget. — Beatrice M. Laforga

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