Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10046

WB downgrades rating on solar home systems project

THE WORLD BANK has downgraded its view of the government’s progress in the implementing solar home systems in Mindanao.
In an implementation and status report, the bank said it now rates progress of the $21.32-million Sustainable Energy Project as “moderately unsatisfactory” from “satisfactory” previously.
It said the original implementing agency, LGU Guarantee Corp., faced difficulties in rolling out the project.
“The implementation of Window 1 of the Photovoltaic Mainstreaming (PVM) Component — supply and installation of 10,000 solar home systems (SHS) in remotely located households in Mindanao — is progressing well with 7,000 SHS already installed and the other 3,000 planned to be installed in the next few months,” the World Bank said.
“Procurement of PVM Window 2 and Rural Network Solar (RNS) was delayed because of uncertainties with the project implementation agency. This caused downgrading of the project to Moderately Unsatisfactory. Procurement of PVM Window 2 and Rural Network Solar (RNS) is planned to resume after the new project implementing agency — the Development Bank of the Philippines — is legally empowered to carry out the project,” it added.
The overall risk rating was also hiked to “high” from “moderate” initially. The project seeks to provide improved electricity services to 202,500 individuals through solar power.
So far, only 5.1% or $1.24 million was disbursed from the $24.32 million trust fund managed by the World Bank. — Elijah Joseph C. Tubayan

DoLE touts permanent status for over 400,000 ex-contractuals

THE LABOR DEPARTMENT said over 400,000 contractual workers were converted to regular employment status this year, including more than half voluntarily regularized by their employers.
The Department of Labor and Employment (DoLE) said that as of Dec. 3, it recorded 411,449 contractual workers regularized by their respective employers.
DoLE Secretary Silvestre H. Bello III told reporters that the number of conversions to regular status is “unprecedented” and backed by President Rodrigo R. Duterte’s determination to minimize labor-only contracting.
He said however that millions more workers remain under contractual arrangements that deny them a path to permanent employment status.
“In fairness to the employers, they responded favorably. That’s why 65% of the employers complied voluntarily. They did not wait for a compliance order,” he said.
Mr. Bello said among the 411,449 are 11,660 contractual workers from the SM Group, which in May promised to voluntarily convert contractual workers to regular status, Mr. Bello said.
SM has not issued a comment on Mr. Bello’s latest announcement.
DoLE also said it inspected thousands of establishments in 2018. In May, the department released a list of 3,377 establishments suspected of being engaged in labor-only contracting.
DoLE’s labor inspections have been halted for this month and will resume on Jan. 15. — Gillian M. Cortez

Domestic trade rises 10.6% by value in Q3

By Mark T. Amoguis
DOMESTIC TRADE, both in terms of volume and value, increased during the third quarter, according to the Philippine Statistics Authority (PSA).
According to preliminary data, the total value of domestic trade rose 10.6% year-on-year to P170.33 billion in the three months to September.
In terms of volume, domestic trade grew 3.9% to 5.05 million tons.
The domestic commodity flow indicator measures the regional flow of goods, which is dominated by water transport.
Four commodity categories monitored by the PSA posted increases in volume, led by chemicals and related products, which rose 191.2% to 492,083 tons. In value terms, the category increased 15.8% to P11.03 billion.
It was followed by crude materials, inedible, except fuels, which rose 134.2% to 734,479 tons. By value, on the other hand, the commodity group declined by 21.7% to P3.36 billion.
Other commodities that posted gains in terms of volume in the third quarter were mineral fuels, lubricants and related materials (29.9%) and miscellaneous manufactured articles (6.9%).
However, double-digit drops in terms of volume were noted in the following categories: commodities and transactions not elsewhere classified in the Philippine Standard Commodity Classification (-65.9%); beverages and tobacco (-50.8%); animal and vegetable oils, fats and waxes (-35.2%); manufactured goods classified chiefly by material (-19.7%); and food and live animals (-14.9%).
During the three months to September, machinery and transport equipment continued to account for the biggest share of the total value of traded commodities during the quarter at P54.98 billion or 32.3% of the total.
The National Capital Region remained the top source of commodities with outflows amounting to P58.75 billion. It recorded a domestic trade surplus of P37.82 billion during the quarter.
Western Visayas, meanwhile, was the top destination of commodities with total inflows amounting P30.75 billion. It posted a domestic trade deficit amounting to P6.01 billion in the three months to September.
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said domestic trade, both in terms of volume and value, validates the robustness of economic growth in the third quarter, though it was weaker than expected.
“This may also mean that, despite the lower aggregate growth number, the quality of growth may have been better since volume and value of domestic trade have both increased,” he said.
For the rest of the year, the economist sees Christmas demand propelling domestic trade growth.
“For 2019, it may well carry over because of election spending and the continued push for infrastructure spending by the government,” he said.

Duterte to sign rice tariffication bill soon

PRESIDENT Rodrigo R. Duterte is expected to sign the Rice Tariffication bill “anytime soon,” Malacañang said on Wednesday.
“I suppose it will be signed anytime…. He will decide on that soon enough,” Presidential Spokesperson Salvador S. Panelo said in a briefing on Wednesday.
The Senate approved the measure, which is expected to slash rice retail prices by P7 per kilogram and inflation by 0.7 percentage points, on third and final reading in November. The House of Representatives, for its part, approved the bill in August.
Cabinet Secretary Karlo Alexei B. Nograles said in a statement that Mr. Duterte “will ensure that even with the tariffication of rice and liberalization of (imports), the NFA (National Food Authority) shall continue to provide the public, particularly the less fortunate, with rice that is affordable and safe.”
Agriculture Secretary Emmanuel F. Piñol said Tuesday that once the bill is signed into law, the NFA can no longer sell rice at P27 per kilo. “Obviously if we procure locally, we cannot sell at 27 because we will be losing a lot of money,” he said.
Asked to comment during a briefing on Wednesday, Mr. Panelo said: “When the market is liberalized there will be competition that will pull down prices.”
In a statement, Senator Francis N. Pangilinan said in response to Mr. Piñol: “The rice tariffication bill, when it becomes law, should not be used as an excuse to alarm the consuming public about available affordable rice. It’s the equivalent of announcing a death toll with the approach of a storm. The correct approach should be to ensure no one dies during a storm.” — Arjay L. Balinbin

DoH funding may be taken from non-performing agencies — Ejercito

SENATOR Joseph Victor G. Ejercito said he may seek to take funds from the budgets of non-performing agencies or those that have failed to spend effectively to provide more funding to the budget of Department of Health (DoH’s) Facilities Enhancement Program.
Asked whether he is looking to realign a portion of the Department of Interior and Local Government (DILG) budget to the Health department, the senator, a vice chairperson of the Senate committee on finance, told reporters on Tuesday: “That’s the proposal of Senator (Senator Panfilo M.) Lacson and Senator (Franklin M.) Drilon but we need to discuss it further. I would prefer to take funding away from agencies with low absorptive capacity.”
The DoH is facing reduced funding in the proposed 2019 budget amounting to P28 billion less than its 2018 allocation of P107 billion. Under the 2019 General Appropriations Bill (GAB), the DoH was allocated P77 billlion.
Health Secretary Francisco T. Duque III has been asking senators to restore at least P16 billion of the department’s budget to cover the construction of health facilities that are already more than 70% complete.
During the Senate budget deliberations last week, Minority Leader Franklin M. Drilon proposed that P16 billion worth of lump-sum appropriations meant for assisting local government units may be given to the DoH.
The DILG during the session said it was not the implementing agency that will handle the P16 billion worth of financial assistance to LGUs.
Mr. Ejercito said the Senate committee on finance has yet to discuss the sources of additional funding for the DoH’s building program.
However, he said health facilities should be given budget priority, especially with the impending implementation of the universal health care program next year.
“My concern, as chairman of the Senate committee on health, is that we can make sacrifices elsewhere, but not health facilities because these are proof of good governance, whether local or national,” he said.
Mr. Drilon has said that the additional funding for the DoH will help address the problem of 900 health facilities that lacked equipment for licensing and PhilHealth accreditation.
The Senate has yet to tackle the health department’s budget in its deliberations on the proposed national budget for 2019. It adjourned on Dec. 13 with the GAB still in the interpellation stage. — Camille A. Aguinaldo

House claims Duterte agreed to let Road Board continue

PRESIDENT Rodrigo R. Duterte agreed to withdraw his order abolishing the Road Board, House Majority Leader Rolando G. Andaya, Jr. claimed on Wednesday, thereby allowing its funding to be distributed.
He said Mr. Duterte ordered the board to continue operations over dinner at the Palace sometime in mid-September.
“He (President) ordered the continued release of Road Board funds, suggesting that its operations will continue,” Mr. Andaya said in a briefing.
“What he told me was Road Board Executive Director Luisito V. Clavano resigned but he did not accept his resignation. I asked the President what that meant and he said he still trusts the man. The President believes Mr. Clavano can still fix the system and so, release the budget.
Also present during the meeting was Speaker Gloria Macapagal-Arroyo and then Special Assistant to the President Christopher Lawrence T. Go.
Presidential Spokesperson Salvador S. Panelo has said that Mr. Duterte is inclined to sign the bill abolishing the board once it is transmitted to his office.
The board manages the Motor Vehicle User’s Charge (MVUC), collected to maintain the road network. Its ex-officio chairman is the Secretary of Public Works, while its members include the Budget, Finance, and Transportation Secretaries, as well as representatives of the motoring and transportation industries.
Mr. Andaya expressed doubts that Mr. Panelo has spoken to the President. “We already did, and the policy was very clear to us,” he said.
He also said that while the Senate has adopted the measure abolishing the board, Mr. Duterte cannot sign it because it was not signed by Speaker Arroyo.
“On this point the House of Representatives withdrew its support unanimously for the bill, so the Speaker is not authorized to sign the bill,” he said.
Mr. Andaya said the bill being pushed by the Senate will not entirely abolish the Road Board.
“What they’re proposing is to move from a seven-man Road Board to three road kings.”
Meanwhile, the Senate formally transmitted to Malacañang a resolution urging the Office of the President to bar the board from releasing the MVUC.
Resolution No. 134, released to reporters on Tuesday evening, requests the President to hold on to the funds in light of the approval of House Bill No. 7436, which abolished the Road Board.
“Considering the passage of House Bill No. 7436 in both houses of Congress and the President’s announced intention to abolish the Road Board and transfer its functions to an appropriate department, the Road Board should no longer be allowed to release any funds collected from the MVUC,” the Senators said in their resolution.
The resolution was unanimously adopted by the Senate last week in the presence of Executive Secretary Salvador C. Medialdea.
The resolution reiterated the Senate’s position that the Road Board should be abolished, noting that the agency has become a “breeding ground for corruption and inefficiency a shown in various reports by the Commission on Audit (COA) over the past years.”
It also noted that the total MVUC collections from 2001 to May 2018 amounted to P166.18 billion, with total releases of P136.87 billion.
The bill abolishing the Road Board has remained in limbo after the Senate adopted House Bill No. 7436 on Sept. 12. Hours later, the House of Representatives moved to rescind its third reading approval of the bill.
Senate President Vicente C. Sotto III has told reporters that the chamber considers the Road Board abolished as of the Senate adoption of the resolution. However, House Majority Leader Rolando G. Andaya, Jr. said the House of Representatives withdrew its support to the measure, rendering Speaker Gloria M. Arroyo unable to sign the bill that was supposed to be transmitted to Malacanang.
Given the deadlock between two chambers, Mr. Sotto has said it was about time for Congress to resolve the matter in a “proper venue,” such as the courts.
The Road Board was created by Republic Act No. 8794.
Under House Bill No. 7436, which the Senate adopted but the House rescinded, the MVUC collections will be remitted directly to the National Treasury and will be appropriated for projects of the Departments of Public Works and Highways (DPWH), Environment and Natural Resources (DENR), and Transportation (DoTr). — Charmaine A. Tadalan and Camille A. Aguinaldo

Palay farmgate price firms in mid-December

THE Philippine Statistics Authority (PSA) said that average farmgate price of palay, or unmilled rice, rose 0.50% week-on-week to P20.11 per kilogram in the second week of December.
The average wholesale and retail prices of well-milled rice posted declines, the PSA said.
The average wholesale price of well-milled rice was at P42.19 per kg, down 0.19% from a week earlier. The average retail price of well-milled rice fell 0.61% to P45.65.
The average wholesale price of regular-milled fell 0.54% week-on-week to P39 per kg, while the average retail price fell 0.64% to P41.90.
On Tuesday, Agriculture Secretary Emmanuel F. Piñol said the National Food Authority will discontinue selling rice at P27 per kg by next year, upon implementation of the rice tariffication bill. The NFA’s role under the proposed law will solely be focus on maintaining a buffer stock, with its rice sourced from domestic farmers at its buying rate of P17 per kg, with P3.70 incentive.
Mr. Piñol said that the NFA will incur losses if it sells rice at rice P27 per kg.
The average farmgate price for yellow corn in grain form fell 0.14% week-on-week to P14.21 per kg in the second week of December.
The average wholesale price rose 0.15% week-on-week to P20.66 per kg. The average retail price rose 0.04% to P25.74 per kg.
The average farmgate price for white corn in grain form fell 1.44% week-on-week to P14.34 per kg.
The average wholesale price was flat at P20.90 per kg, as was its average retail price at P27.84. — Reicelene Joy N. Ignacio

Mentoring performance in your organization

Fifteen years ago, I started managing people for one of the leading life insurance companies in the Philippines. I was confident that my four years of work experience in the fast-moving consumer goods (FMCG) and Transportation industries, plus my newly minted master’s degree, would be enough for me to be a successful manager. I was only half right. My formative years as a direct manager of a small team were full of “a-ha” moments mixed with humbling learning experiences on how to manage others.
Filipinos can do great things when they work together, a phenomenon that has been called the Bayanihan spirit. However, this presupposes that everyone in an organization has a common goal and that everyone pulls their own weight. Roles should not be confined by what is stated in one’s job description. When the situation calls for it, members at all levels of the organization need to be flexible. While I had been initially hired to instruct my team on their tasks, I realized that telling my colleagues how they should do their work was not effective and would only discredit me in their eyes, especially since some of them were already very proficient at their tasks. Therefore, I decided to refocus my efforts towards improving my skills as a manager. To me, this meant being able to help my colleagues/teammates succeed in their individual roles within the team.
My management style went through three distinct phases.
I started by “managing people.” I gave my staff detailed instructions on how they should specifically do their work. Like any new manager, I wanted things to be done the way I would do it. I micro-managed and constantly reviewed the work of my staff. Not only did this require a lot of effort from my end, I also realized how this management style encourages distrust within the team and holds back innovation.
I then changed my style to “leading people.” I made sure that I had a good understanding of the work performed by my staff so that I could identify the best way to help them with their roles. I started to collaborate more with my staff in order to find ways to make their work better and faster whilst maintaining the work quality standards expected by the organization. Furthermore, I focused on augmenting my staff’s capabilities through regular training and by giving them ownership of some activities like data collection, metrics generation and report presentation.
I saw lot of success using this management style but the “I’m staff and you’re a manager” behavior among my teammates still prevailed. As this continued to affect the team’s performance, I felt the need to change this behavior. However, to change the culture of my team meant having to transform my management style again — I needed to undergo a paradigm shift on how to manage people.
That shift came when I committed myself to “mentoring people.” As a mentor, I needed to change my perception of people. By treating people as “colleagues” and not as “staff,” my people stand on equal footing as myself, with the only difference being the roles we perform for the organization. This new approach required me to explain the purpose and importance of my teammate’s roles, particularly how their jobs fit into the bigger picture — to the success of the company. I poured in tremendous effort to get my colleagues to understand the company strategy because, as key organizational stakeholders, their commitment to the strategy will be the key to success. Giving my colleagues a real purpose for doing their jobs well really unlocked their full potential. I noted how the team became more collaborative and how ideas were actively being shared, discussed, agreed, implemented and monitored. An added benefit to this was that it seemed that the Millennials I worked with preferred this type of management style.
These are some of the personal experiences that I share with clients when they ask me about leading practices for staff/manager performance management. I also share how I wished that I learned about my firm’s performance management methodology years ago, since it teaches a lot of the lessons and skills that I had to learn by myself.
The methodology is about transformational behaviors that really stick. It is based on proven concepts and have been applied to numerous organizations across the globe. While the techniques are not new or earth-shattering, when properly executed together, these techniques will create a transformational culture in any organization.
The methodology focuses on building the right behaviors. It seeks employees’ understanding and buy-in of the organization’s goals. It also instills the importance of gathering the right data and transforming this data into useful information which the team and organization can use for business decisions. A collaborative environment is where proper and timely tactical and strategic operational decisions can be made to address business problems and challenges, resulting in better planning and control. It will also improve process standards, as well as develop sustainable routines and practices.
What I really love about this methodology is its potential to transform managers into mentors and staff into leaders who can lead themselves and influence others. Best of all, no technology investment is needed to implement this methodology in any organization.
Organizations who have implemented this methodology have seen an increase in employee output and a reduction in operating costs across the implementation areas. It has created additional full-time equivalent (FTE) capacity even without any changes in the current staff headcount. Furthermore, it has allowed department heads and team leads to spend less time firefighting and to devote more time for coaching and mentoring staff. Staff, on the other hand, have more opportunities to attend training and mentoring sessions with their department heads or team leads.
To navigate a constantly changing business and technology environment, an organization must future-proof its most valuable asset — its people. It is only by instilling the right behaviors in your people would they be able to adapt and thrive regardless of what may happen in the future.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Victor Gabriel Ona is a senior manager with the Operations Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728 local 3230/3240
victor.gabriel.ona@ph.pwc.com

Protecting human know-how, knowledge, creativity, and innovation

By Matthias Bauer and Philip Stevens
TRADE tensions between the US and China continue to escalate and the World Trade Organization (WTO), the global forum of the management of trade rules and disputes, seems powerless to stop them.
The WTO’s multilateral, rules-based trading system has underpinned huge increases in global prosperity since the 1960s. But shortcomings in investment rules and enforcement mean WTO reform is now top of the G20, US, and EU agenda.

knowledge
The US is right: intellectual property is vital to the modern economy.

Much of the drama stems from US accusations that the WTO failed to hold China to account for not opening up its economy as promised when it joined the body in 2001. No reform, says the US President, could see his country withdraw from the WTO.
The US is seriously concerned about China’s attitude toward intellectual property (IP) rights. The Trump administration claims Chinese theft of American companies’ proprietary knowledge through cyberattacks, counterfeiting, online piracy, and forced technology transfer from investing companies has cost $50 billion in corporate earnings.
The US is right: intellectual property is vital to the modern economy. Trade used to be all about moving physical goods from their point of manufacture to customers in different countries. Today, it is increasingly about “intangible” products and services, based on research and development efforts, brands, and patented or licensed technology.
Much of modern international trade and investment is driven by human know-how, knowledge, creativity, and innovation.
The WTO has accelerated this globalization of knowledge-based industries thanks to its Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), ratified in 1994.
TRIPS requires all WTO members to institute basic laws to protect IP. As recently as the 1980s, many countries did not even grant patents — unsustainable given era’s rapid pace of globalization and technological development.
The creation and harmonization of basic global IP standards under TRIPS has been transformative for developing countries in particular. Under TRIPS, more countries have benefited from the integration of domestic companies into global value chains, through which modern products and services are designed, manufactured, and marketed across many countries. China, Singapore, and Korea are notable examples.
These global value chains have created cheaper consumer goods and reduced poverty by helping to integrate developing countries into the global economy.
According to the World Intellectual Property Organization (WIPO), one-third of the value of manufactured goods sold globally ($5.9 trillion), comes from intangible capital, underlining the importance of IP to today’s global economy.
Outside of China, IP problems abound. Counterfeit and pirated goods account for 2.5% of global trade. Rights holders are unable to uphold their IP rights in local courts and many countries have yet to fully upgrade their domestic IP laws in line with their treaty obligations.
Meanwhile, the text of TRIPS has not had a meaningful update since its inception in the 1980s, and could benefit from updates to take account of developments in new technologies, particularly in the biotechnology and digital sectors.
These shortcomings have compounded multilateral trading system’s problems. As a result, knowledge-exporting countries increasingly look outside the WTO to achieve their trade objectives. Bilateral Free Trade Agreements (FTAs) and regional deals (the NAFTA [North American Free Trade Agreement] replacement being a current example) have allowed like-minded countries to modernize and update trade and investment rules, free from the constraints of a unanimous vote by 164 countries.
But this is fragmenting the international trading system and limiting the opportunities for countries outside these deals.
At the November G20 summit and October conference on WTO reform in Ottawa, Canada, leaders focused on the mechanics of dispute resolution and enforcement.
These are important for restoring faith in the WTO. But in the longer term, the WTO needs to ensure the intellectual property rules that govern trade in knowledge-intensive intangible capital are strong and well enforced. If needed, countries willing to move faster on these reforms could form coalitions under the auspices of the WTO.
In December, Beijing announced a number of new punishments for domestic IP infringers. It suggests that China’s officials are beginning to understand the importance of IP for smooth trade and relations.
But to ensure modern trade and investment can continue on non-discriminatory terms for everyone, the WTO should put IP first.
 
Matthias Bauer is senior economist at the European Centre for International Political Economy, Brussels. Philip Stevens is executive director of Geneva Network.

To agree or not with China

The framework for our foreign policy is found in Article II, Section 7 of the 1987 Constitution, which provides that the State shall pursue an independent foreign policy. In its relations with other states, the paramount consideration shall be national sovereignty, territorial integrity, national interest, and the right to self-determination.
Driven by our democratic ideals, core to our foreign policy is the promotion of economic prosperity, national security, and rule of law. These principles are currently being tested given the significant shift in the way our country is behaving in the international and diplomatic arena.
The recent visit of President Xi Jinping this Nov. 20 was heralded as a big step in forging a stronger strategic alliance as “good friends and neighbors.” This alliance shall presumably be crystallized in the areas of trade, security, energy development, and financial assistance.
SERIES OF PROPOSED AGREEMENTS
About 30 agreements covering matters like oil and gas development, infrastructure cooperation, industrial parks, bridge construction, humanitarian cash assistance, agricultural cooperatives, dam projects, railway development, people-to-people exchanges, issuance of panda bonds and Renminbi-Philippine Peso foreign exchange trading market, among others, have been executed during President Xi’s visit.
Many of our government leaders hailed the results of the visit as extremely successful and mutually beneficial to both China and the Philippines. There are more pluses than minuses in this revitalized and dynamic relationship, according to most of our officials and observers.
JOINT OIL EXPLORATION MOU
The one that is getting a lot of keen interest is the Memorandum of Understanding (MOU) on Oil and Gas Cooperation because the Palace was initially mum about what was exactly agreed upon. Many concerned players in the industry, businessmen, economists, and financial analysts are speculating about its effect on natural resource exploitation, the sharing formula in income derived, steps taken to stop the growing number of military and other installations in the disputed islands, and the wider diplomatic and legal implications for our victory in the South China Sea arbitration. Even our very own Foreign Secretary Teodoro “Teddy” Locsin issued a statement saying that the Philippines, and not China, should be drafting the oil and gas exploration agreement. And in the midst of numerous calls for transparency, the MOU has actually been made public recently.
Paranoia was doused with then-acting Chief Justice Antonio Carpio and former Foreign Secretary Albert Del Rosario giving assurances that there were no substantive, heavyweight, nor one-sided stipulations in said MOU. A cursory look at the text of the MOU shows that the two countries shall, in the future, negotiate on “arrangements to facilitate oil and gas exploration in relevant maritime areas consistent with applicable rules of international law.”
In fact, the context of the MOU made reference to the UN Charter, the 1982 United Nations Convention on the Law of the Sea (UNCLOS), and the Declaration on the Conduct of Parties in the South China Sea. Most importantly, the inter-government joint steering committee (chaired by China and the Philippines’ Foreign and Energy Ministries) will liaise and work very closely with their respective working groups, which shall focus on a working area. For China, it is the CNOOC (China National Offshore Oil Corporation) and for the Philippines, the service contractors duly authorized with respect to their working area. Philippine National Oil Co.-Exploration Corp will be assigned to handle matters when there is no working area specifically designated. The active involvement of technically, professionally, and operationally competent personnel belonging to these service contractors is a good sign and a great starting point. In short, we are not sacrificing or giving anything away. At least, that’s according to the present MOU.
BUT BE ON GUARD
However, as rightfully stated by Justice Carpio, vigilance and close observation are key. We should always monitor developments to ensure that our sovereign rights over the exploitation of our rich natural resources are safeguarded. Furthermore, we need to consider other equally relevant issues like over-reliance on credit or monetary dole-outs to the point of sacrificing our interests. Or the entry of Chinese nationals, posing as tourists, who actually work as sales or retail personnel for Chinese enterprises or as construction workers for Chinese infrastructure projects, houses or condominiums where online gaming and other illegitimate business activities are conducted. Recently reported incidents of lack of alien employment permits or working visas for Chinese visitors have escalated. To the credit of Commissioner Jaime H. Morente of the Immigration Bureau, these illegal workers are now continuously and relentlessly being apprehended.
These cases of illicit employment are plainly disadvantageous to our nation, which has to take care of its huge number of unemployed citizens languishing in poverty.
And though we hear nice words and phrases like “collaboration,” “cooperation,” “friendship,” “and stronger ties,” all generic buzzwords in the art of international diplomacy, one should not forget the issues of the gutter — those which truly matter to the ordinary Filipino who continue to struggle for a better life.
Be it China, the USA, or some other advanced superpower, we should always primarily think about us. In each visit by the leaders of our rich neighbors, the paramount consideration must always be our own welfare. Any diplomatic treaty or agreement must be guided and molded by our country’s best interests.
 
Ariel F. Nepomuceno is a management consultant on strategy and investment.

’Tis the season for Christmas parties

As the year comes to a close and we experience a slew of Christmas parties both in our professional and personal lives, stress levels heat up despite the supposedly cool December weather. Christmas parties at home, in school, or at the office have become a ubiquitous part of our lives.
The long Christmas celebration in the country culminates with a series of Christmas parties that make us joyful and jolly, but also make us cringe and cry at the thought of forced, farcical, and Freudian performances. Toward the end of the year, we usually receive a memo from the Human Resources (HR) Department asking us to come up with performances depicting the year’s supposedly innovative and original theme.
We are tasked to come up with performances to match even the toughest talent competitions, in which singing and dancing have become commonplace. Sadly, some of us have to perform tortuous numbers during which we gyrate, grind, and grope each other to the beat of novelty songs that would make us, in our Christian upbringing, cringe. I have encountered all of these banalities as performer, judge, audience, and lurker during Christmas parties.
In her Harvard Business Review article titled “4 Reasons to Kill the Office Holiday Party — and One Reason to Save It,” Julia Kirby states, “it’s time to rethink the point of the holiday party, and whether it’s still having anything like its desired effect.” Holiday parties are expected to “do a few good things for the workplace: to encourage coworkers to get to know each other informally; to appreciate and celebrate the year’s good work by all; to remind everyone that they are part of one company.” However, several studies have proven all of these otherwise.
What then can be done to save the year-end parties from becoming stressors and make them more special for everyone?
One of the main problems that Kirby pointed out is that people do not actually mingle in parties. In fact, Paul Ingram and Michael Morris of Columbia University, in their study entitled “Do People Mix at Mixers?,” pointed out that “guests did not mix as much as might be expected in terms of making new contacts.” People were likely to mix with people they already know, so holiday parties should not be venues for people who do not know each other. Organizations can thus let people sit with their friends to minimize their stress.
Another problem is that “there may be more downside risk than upside opportunity,” especially when alcohol is served. Some studies have uncovered “unwanted sexual advances having taken place at holiday parties,” with some performers and performances being highly suggestive and offensive, and, thus, possible “minefields” for harassment. Supposedly funny and frivolous banter may be misconstrued as degrading and derogatory when taken piecemeal and out-of-context and displayed on social media platforms.
However, these parties do serve an important purpose: to bring everyone together as one organization. Despite awkwardness and anxiety, people still anticipate this season. Even in the absence of “engagement, integration, or collaboration,” office Christmas parties — according to Lee Bolman and Terry Deal, in their Four Frame Model in their book titled Reframing Organizations: Artistry, Choice and Leadership — are part of a leader’s symbolic gesture “to address people’s needs for a sense of purpose and meaning in their work.” Bolman and Deal continue that this gesture “includes creating a motivating vision, and recognizing superb performance through company celebrations” because, in this season of joy and hope, we remember the real reason why we celebrate Christmas — with or without parties.
 
Brian C. Gozun is dean of the Ramon V. Del Rosario College of Business and is on his last leg of office Christmas parties. He narrowly escaped performing at his college party, and hopes not to be blindsided at other parties. He will gladly accept invites, but will not perform for food. He wishes everyone a Merry Christmas and a Happy New Year.
brian.gozun@dlsu.edu.ph

Skyway to heaven

I have been using the South Luzon Tollway for the past 45 years, or since the early 1970s when the toll fee for the Nichols-Sucat segment was only one peso. All this time, ever since the south tollway first opened in December 1969, cash has been an acceptable mode of payment for tollway use. Apparently, by some time in the near future, this might no longer be the case, at least for the Skyway.
Based on public announcements by the Skyway operator, “soon” the Bicutan and Sucat exits of the Skyway will be exclusive for electronic toll collection, or limited to those who are using the RFID payment system. Cash will no longer be accepted at these Skyway exits. It is unclear to me, however, why this is being done. No explanations have been offered so far.
I take this plan to mean that if you do not have an RFID, then you cannot use the Bicutan and Sucat exits of the Skyway and will have to use only the at-grade exits for these two destinations. But, if you find it more convenient or practical to use the Skyway for these exits, despite the higher toll fee, then it becomes a simple matter of you getting an RFID.
I do not agree with the plan. The tollway — including the Skyway — while operated privately, is still considered a public road in nature and in character. The tollway operates on the basis of a franchise issued by the government, to allow it to serve the public and to provide services that benefit the public, and always at the convenience of the public.
In this line, can a private tollway operator, operating under the authority granted to it by the government to provide public services, be allowed to set exclusive payment terms? Can the tollway operator discriminate against motorists without RFIDs or cannot afford to make use of RFIDs? Has the Toll Regulatory Board conducted public hearings and has approved the plan to make the Bicutan and Sucat exits of the Skyway exclusive for RFID users?
In addition, has data been presented to indicate whether these particular Skyway exits are used more by RFID or cash-paying motorists? Has research data been made public to indicate improvements in cycle time, if any, if all these exits are made exclusive to RFID? On the other side, has data been presented on how such a plan might negatively impact motorists?
And then there is the issue of the “float.” You see, while RFIDs are given out for free, the way the system works is that motorists must “load” the RFID with toll credit, pretty much like a pre-paid cellphone SIM. In short, the RFID user advances the toll fees, which are then stored in the RFID system as credits in favor of the RFID user/owner.
Every time the motorist goes through a toll booth, the required toll fee is debited from the account. The motorist must reload the RFID before the credit is completely depleted; otherwise, the RFID will be confiscated. And the rule is one car, one RFID. Thus, if you have two cars or more, you need to install an RFID for each car and load each RFID with credits. That is, assuming you have extra cash to advance the toll fee.
Question 1: What is the total float currently enjoyed by the tollway operator by way of all advance toll fee payments currently stored in its RFID system? I reckon this runs to the hundreds of millions of pesos. If so, is the tollway operator earning any deposit interest or placement/investment income from these advanced toll fees?
Question 2: Is the tollway operator actually allowed by law to “derive” income other than toll fees, including interest income on advance toll payments currently stored as credit in the RFID system? Is the Toll Regulatory Board aware of this setup and has actually approved such arrangement?
Question 3: Tollway fees are subject to VAT or value-added tax. Are the toll fees collected in advance as stored credit in RFIDs inclusive of VAT? If so, when is the VAT remitted to the government? Soon after the tollway operator receives the payment from the RFID users loading into his account? Or, only after the stored credit has actually been used and processed and thus considered paid toll fee? When is the advance payment or pre-payment actually receipted?
Question 4: If the prepayments or RFID load are inclusive of VAT, and the VAT is not immediately remitted to the government, isn’t there an additional “float” enjoyed by the Skyway operator by way of government or public money — taxes — that are likewise deposited or invested or placed to earn interest or dividends? Does the interest income on the VAT portion go to the government or the tollway operator? Is this arrangement allowed by government audit rules and by law?
I can just imagine the total amount of prepayments or advance payments to be pooled and collected — and invested — by the tollway operator once all users of the Bicutan and Sucat exits of the Skyway are made to use only RFIDs. Millions of people live in these areas and many of them have vehicles that use the tollway daily.
If the public, particularly those living and working in southern Metro Manila — and the government, including the toll board — are all okay with such an arrangement, then I guess I will have no choice but to accept the plan and bear it. But, I for one, am against the plan of making the Sucat and Bicutan exits of the Skyway exclusive for RFID users.
I believe that tollways should be pay per use. When you pass, then you pay. And motorists should always have the option to pay in cash, as has been the case in the last 49 years, on a per-use basis, at any tollway exit, including Skyway exits. There shouldn’t be any discrimination in the mode of payment. What is important is that toll fee is paid, and not so much as how it is paid.
Moreover, tollway exits should not refuse to accept loose change — 5-, 10-, 25-centavo coins. Money is money, in any form. Yes, I have had the bad experience of being berated by toll booth tellers for paying in these denominations, at one time even being told to use such coins only in SM, rather than for paying toll fees. But there is no law against the use of such coins for toll fees.
Tollway operation is a daily cash operation. Millions of cars pass through toll roads regularly, all paying in cash, if they haven’t paid in advance under the RFID system. There are no “losses” from damaged or unsold product inventory, and there are no issues with respect to Accounts Receivables. There are no debt payments to collect or to write off. I reckon the tollway operator likewise enjoys interest or investment income from “float.”
So, why change the system now? Does the Skyway operator really need to make certain exits exclusive to RFID users? Will this move truly benefit motorists and people using the tollways? As a motorist, I can make the adjustment to RFID. However, there should be more transparency and accountability on why this is being done. There should be clear research data to scientifically prove that the initiative will truly benefit the public.
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

1...10,04510,04610,047...12,721Page 10,046 of 12,721
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube