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CTA refers DoE-BIR dispute to Solicitor-General

THE Court of Tax Appeals (CTA) dismissed for lack of jurisdiction a petition by the Department of Energy (DoE) to reverse the decision of the Bureau of Internal Revenue (BIR) finding it liable for alleged excise tax deficiency worth P593.7 million.

In an 18-page decision dated May 16, the CTA third division said that while it has jurisdiction over disputed tax assessments, Presidential Decree No. 242 provides that the resolution of cases involving government offices, agencies, and corporations must be settled by the Secretary of Justice or the Solicitor-General.

It also cited a Supreme Court decision which noted that under Chapter 14 of Executive Order No. 292, or Administrative Code of 1987, stating that the Secretary of Justice, as attorney-general of the government and ex-officio legal adviser of all government-owned or controlled corporations, is expowered to settle cases involving questions of law.

The Solicitor-General, on the other hand, has the authority settle cases involving mixed questions of law and fact, or factual issues only, if the dispute is between or among government departments, bureaus, or corporations, to which it is the principal law officer or general counsel.

“The above-quoted jurisprudence is applicable to the present case considering that the subject disputed assessment is between the Department of Energy and the Bureau of Internal Revenue, both government entities. Thus, in light of the foregoing ruling of the Supreme Court, this Court has no jurisdiction over the present case,” the CTA ruled.

“Lack of jurisdiction of the court over an action or the subject matter of an action cannot be cured by the silence, acquiescence, or even by express consent of the parties. If the court has no jurisdiction over the nature of an action, its only jurisdiction is to dismiss the case. The court could not decide the case on the merits,” it added.

The CTA also ordered the decision to be forwarded to the Office of the Solicitor-General.

The DoE filed the petition following the tax assessment of the BIR over its alleged deficiency taxes on exported crude oil from service contracts operated by Galoc Production Company from June to December 2011 and for 2012.

It said in its first protest to the BIR that the “owner” referred under the Section 30 (A)(1) of the Tax Code, the basis for the tax assessment, refers to the service contractor and not the DoE which is “an agent or instrumentality of the State,” and does not own a mining claim or concession.

The BIR in its answer to the CTA petition, on the other hand, said DoE, “as owner of the mining claim,” is liable to pay the excise taxes on the export of crude oil from the Galoc Production Company in accordance with Section 130 (A) (1) of the Tax Code, which states that in case of indigenous petroleum, or other natural gases, excise tax shall be paid the buyer while excise tax on exported products shall be paid by owner, concessionaire or operator of the mining claim.

The ruling was written by Associate Justice by Associate Justice Erlinda P. Uy and was concurred in by Associate Justice Ma. Belen M. Ringpis-Liban. — Vann Marlo M. Villegas

Transforming the HR function through technology

With the fast-paced development of technology, the fourth industrial revolution is reshaping nearly every aspect of business. We often read about how technology and disruption are transforming critical business functions, and one such function that needs to keep up is human resources or HR. More and more, the HR function needs to explore how new solutions, trends and technologies (such as automation) can have a direct impact on productivity.

According to proprietary research by CareerBuilder, a global human capital solutions company, HR manager respondents who do not fully automate say that they lose 14 hours a week from manually completing tasks. HR managers are optimistic about the impact of automation and artificial intelligence (AI) on HR strategies. This is also corroborated in a survey by CareerBuilder, where 72% of respondents said that they “expect that some roles within talent acquisition and human capital management will become completely automated in the next 10 years.” HR automation is, indeed, on the rise with the top three automated functions: employee messaging (57%), employee benefits (53%), and payroll (47%). It is only a matter of time before automation drastically impacts on HR operations and becomes a catalyst of employee engagement.

USING TECHNOLOGY TO IMPROVE THE PERFORMANCE OF HR FUNCTIONS
Let us consider some examples of how aligning with current technological trends can help successfully initiate and implement HR strategies. Take recruitment and talent management for instance. With the increased interest among today’s workforce to shift towards mobile technology and social media, organizations are transitioning from posting on job search websites into social media.

Data shows that 79% of job seekers are likely to use job search portals, while talent acquisition leaders also consider online professional networks as an effective branding tool. HR managers are also increasingly aligning with this trend, where 72% of recruiters use LinkedIn to hire employees and 55% of organizations strategically use Facebook and Twitter for various HR purposes.

Aside from the impact of social media, organizations are also leveraging data analytics and cloud-based solutions to deliver improved HR services and gain better insights on trends affecting their employees. Small-scale organizations are beginning to adopt cloud technology for certain functions such as talent management, human resource management systems, workforce management, and payroll.

Organizations are also investing resources for social media tools and HR technology integration. In fact, two in five organizations say that their HR technology spending is on the rise. However, investment in HR technology is not always top of mind for some business leaders because of their intangible impact on the organization’s bottom line and employee productivity. Despite the digital disruptions transforming business today, many organizations have yet to adopt technologies for their core business or for support functions that include HR.

ROBOTICS AND THE FUTURE OF THE WORKFORCE
Other technologies expected to have a huge impact on HR are robotics and AI. With the advent of automated solutions that can handle clerical or repetitive work, there is need to plan ahead, look into possible job displacement, and manage employee transitions to new roles. The onset of the machine economy is set to displace parts of the workforce, with two-thirds of all jobs susceptible to being rendered obsolete by automation. This, however, varies depending on the rate of adoption of technology in specific countries.

According to research and advisory firm Forrester, automation could lead to a net job loss of 9.8 million or 7% jobs in the US alone by 2027. As a result, a new wave of jobs will develop and require a completely new skillset (e.g., data analyst, information security specialist). Employees consider this to be one of the biggest risks of automation, but are also optimistic about their perceived benefits in their everyday work. In fact, 9 out 10 workers seek to automate mundane tasks at the workplace.

Organizations must also be able to strike a balance for complementary working systems between technology and people. The key to achieving this balance is not to displace human workers by utilizing RPA, but to make them more effective in performing more strategic activities. There is also a need to build analytic capabilities into HR that will in turn support talent strategies in boosting organizational performance and productivity.

THE GIG ECONOMY AND REMOTE WORKING ARE RESHAPING THE WORKING WORLD
As traditional business processes evolve, we are seeing an increase in the freelance or gig economy and remote working, which have become acceptable practices. According to Upwork’s Future Workforce Report, nearly half of respondent companies utilize flexible workers. Surprisingly, 90% of hiring managers say that they are more satisfied with the skills of freelancers than their recent full-time workers. Companies are more likely to hire freelancers based on quality over cost. The US, the Netherlands and the UK lead the pack in embracing the gig economy, as these countries have a high share of self-employed individuals. A favorable policy environment was one factor perceived to have fueled the growth of the gig economy in these countries.

Remote work in the Philippines has recently been institutionalized with the passing of the New Telecommuting Act (Republic Act No. 11165) in early 2019. The law recognizes telecommuting, which allows employees to work in alternative locations via enabling technologies (e.g., internet, cellular phone, computer). Many multinational organizations and business process outsourcing companies have long adopted telecommuting due to the need to communicate regularly and deliver work across time zones.

Employers and employees both directly benefit from telecommuting arrangements by gaining more flexibility in office space utilization and lessening time and money spent traveling to and from the workplace. As technology advances further, telecommuting could become the new norm. Already, some organizations are shifting corporate spending from office space and utilities to subsidizing connectivity expenses of employees who work offsite. Ultimately, this will necessitate the review and updating of company people polices and local labor laws to make telecommuting more aligned with the future of work.

Situations such as road congestion and a shortage of or high costs for work space, and insufficient facilities (e.g. parking) mean that working from home can reduce costs for companies. Focus then can be given to managing employee discipline and maximizing productivity remotely, to ensure quality output that is comparable to the work produced in a traditional workplace.

Given the rapid adoption of technology, automation and new workforce behaviors, HR functions are pressed to catch up and leverage these new trends to adequately meet the needs of tomorrow’s global workforce, and to maintain their competitiveness through effective, strategic and technology-enabled HR processes.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Aldwin Aris C. Gregorio is an Associate Principal of SGV & Co.

Analysts mull PHL options amid rights issues

By Arjay L. Balinbin
Reporter

ANALYSTS sought for comment on Sunday bared options for the government in responding to the call of the United Nations’ (UN) human rights experts for an independent investigation into human rights violations in the Philippines.

“For the moment, the government should take the call for what it is. The human rights experts are simply expressing an opinion. As I understand it, there is no official declaration yet from the UN. Hence, there is no need on the part of the administration to be alarmed or be defensive about it,” lawyer and senior research fellow Michael Henry Ll. Yusingco of the Ateneo Policy Center said in an email.

He added that the government, instead of “immediately expressing aversion” to the call, should “point out” that there is an existing office, which is the Commission on Human Rights (CHR), responsible for the issues being raised.

Also in an email, University of the Philippines Political Science professor Maria Ela L. Atienza said the government and President Rodrigo R. Duterte “may once again ignore this strongly-worded call from the UN human rights experts due to the high popularity ratings of the President and the recent success of senatorial candidates he endorsed in the May elections, which the government interpreted as people’s continued support for the war on drugs.”

She further said, “But the Philippines cannot stop the UN and other human rights bodies to have an independent probe into the killings as a result of the war on drugs.”

“With the UN and international media’s eyes on the Philippines, local rights groups, the Commission on Human Rights, and those who oppose the war on drugs have some external support for their continued work and advocacies.”

In a statement on Saturday, Presidential Spokesperson Salvador S. Panelo slammed the said 11 UN experts, saying that the Philippine judiciary “sees to it that the law is applied equally to all.”

He said the call by the UN special rapporteurs is an “outrageous interference on Philippine sovereignty.”

Mr. Yusingco said being “overly sensitive” on the matter makes the administration “look like it is hiding something and is afraid of being found out.”

He further said the Palace’s “quick reaction to reject the proposal does not portray an administration that has nothing to worry about.”

“The administration should have reserved its indignation against an investigation on the high number of drug war-related deaths when the UN itself calls for it. It is only in this instance when Philippine sovereignty is under threat.”

Also sought for comment, UP Political Science assistant professor Perlita M. Frago-Marasigan said via chat: “The administration has three possible options: first, it can subject itself to such investigation and, in the process, it can put to rest all claims that the Duterte government is above the law; second, it can reassert the sovereignty of the state and continue acting as though the government is above the law; and third, it can ignore it and create an alternative truth to tell.”

Ms. Atienza noted that despite the country’s withdrawal from the International Criminal Court (ICC), the Philippines remains an active member of the UN and is a “signatory to a number of declarations on human rights.”

For that reason, she said the “UN and other human rights groups, including groups in the Philippines, continue to express concern about the country’s human rights record.”

For its part, the CHR said in a statement on Saturday that the government should “give serious attention” to this move. “We believe that this call by the UN experts is the good opportunity for the government to address questions on the human rights situation in the country, instead of dismissing it again as propaganda. Let now an independent probe test the government’s commitment to the respect and protection of human rights, as well as international human rights standards, in the interest of the welfare of every Filipino,” it said.

Incoming mayor assures no tax on real estate, permits on watch

By Emme Rose S. Santiagudo
Correspondent

ILOILO CITY Mayor-elect Jerry P. Treñas has outlined his governance plans for the next three years to the business community, including an assurance that there will be a moratorium on real property and business tax increases.

“There will be no increases in the real property and business taxes,” Mr. Treñas said during last week’s consultative meeting with Iloilo’s business leaders organized by the Philippine Chamber of Commerce and Industry (PCCI)-Iloilo Chapter.

Mr. Treñas, the outgoing lone congressional representative of the city who had previously served three terms as mayor from 2001, also vowed to push the Philippine Ports Authority (PPA) to hasten the approval of International Container Terminal Services, Inc.’s (ICTSI) proposal to invest P8.7 billion for the Loboc Port upgrade.

“I support their (ICTSI’s) request to hasten the approval of the project. Iloilo was first known to be a ports city. It is about time that we reclaim the title. I fully support the ICTSI,” he said.

Aside from the Loboc Port, Mr. Treñas said there is also a PPA proposal to upgrade the Ortiz Wharf.

“We have requested PPA to develop that and they have made a development study, they are going to spend P100 million for that,” he said.

The incoming mayor also presented the members of his administrative team who will help him implement his “WHEELS” program, which stands for welfare, health and sanitation, education, environmental management, livelihood & the local economy, and sustainability.

“It is important that before we start our term, we set the rules. And one of our rules is (that) governance is not my sole responsibility, it should be a shared responsibility between the governor and the government and that is why this afternoon I am very happy that we are here. I have been meeting already with my team,…(which) would help me implement my programs,” Mr. Treñas said.

Other measures that Mr. Treñas aims to pursue include seeking assistance from the Public-Private Partnerships (PPP) Center for the upgrade of the city’s slaughterhouse and redevelopment of public markets, and revival of the Metro Iloilo-Guimaras Economic Development Council.

Maria Victoria Lea Lara of the Iloilo Business Club (IBC), meanwhile, said the consultative meeting was also intended to manifest the business community’s support for the incoming local government.

“The overwhelming support of the community who are present today manifests the willingness of the business sectors to work with the incoming administration,” said Ms. Lara, noting that the strong partnership between the private and public sector has been one of the main drivers of Iloilo City’s development.

MMDA mulls anew traffic plan on vehicle occupancy limit

THE possible implementation of the High Occupancy Vehicle Traffic Scheme could help reduce traffic in Metro Manila, an official of the Metropolitan Manila Development Authority (MMDA) pitched anew in an interview Sunday.

“Then when the new MMC [Metro Manila Council] comes, they might be proposing again yung HOV [High Occupancy Vehicle Traffic Scheme], ‘yung bawal ka sa EDSA kapag mag-isa ka lang (You cannot drive alone on EDSA),” said MMDA EDSA Special Traffic and Transport Zone chief Edison Nebrija.

He added, “Then ‘yung mga (the) infrastructures, kung makakikita every weekend may ginagawa ang DPWH [Department of Public Works and Highways] sa EDSA (If you will notice, DPWH is working along EDSA every weekend). So ‘yung clearing namin sa alternate routes, para kapag pino-propose namin yung HOV again, cleared ‘yung mga alternate routes (Our clearing operations on alternate routes are meant for the possible reimplementation of the HOV scheme). This is just part of the bigger plan.”

“I just hope that everybody will be onboard, hindi na tayo pwedeng kontra nang kontra (We should not be against this anymore). The future starts now and we should brace ourselves for these changes,” Mr. Nebrija also said.

MMDA also drew flak for its provincial bus ban along EDSA and its plan of setting up point-to-point buses instead.

For his part, Mr. Nebrija defended these plans as part of a “bigger plan” to reduce travel time around the metropolis. — Vince Angelo C. Ferreras

Fuel prices dropping by more than P2/L this week

OIL COMPANIES are set to rollback fuel prices again this week at reduction rates higher than last week. SeaOil said it will lower prices for gasoline by P2.45 per liter (/L), diesel by P2.70/L and kerosene by P2.60/L at 12:01 a.m. on Monday. Petro Gazz will implement the same price cuts for gasoline and diesel at 6:00 a.m. on Tuesday. Last week, firms such as Petron Corp. and PTT Philippines Corp. slashed the per liter prices on gasoline, diesel, and kerosene at P1.70, P1.05, and P1.00, respectively. The rollbacks follow the movements in the international oil market, one of the companies said. — Janina C. Lim

Cordillera stakeholders prepare amendments to autonomy bill for 18th Congress

THE MULTI-SECTOR drafting committee for the proposed Autonomous Region of the Cordillera (ARC) Organic Law has started consolidating inputs from stakeholders for amendments that will be proposed in the bill for refilling at the 18th Congress. In a statement on June 7, the Cordillera Administrative Region-Regional Development Council (CAR-RDC) said they aim to turn over the suggested revisions to House Bill 5343, An Act Establishing the ARC, by July of this year to the incoming CAR representatives. HB 5343 was filed at the just-concluded 17th Congress. Re-elected Baguio City Rep. Mark O. Go, at the consolidation workshop held on May 22-24, committed to gather all the incoming CAR representatives to discuss their strategy for the refiling of the bill and facilitate its passage in the incoming Congress. The CAR-RDC has drafted a roadmap to achieve Cordillera autonomy by 2021. The drafting committee held several consultations, forums, and assemblies around the region to gather suggestions on the ARC bill. The committee is composed of representatives from local governments, regional line agencies, indigenous peoples’ rights groups, civil society organizations, and the academe.

FLo Water cuts off supply to MIWD amid dispute

PHILSTAR

FLO WATER Resources Inc., one of the bulk water suppliers of Metro Iloilo Water District (MIWD) that delivers 15,000 cubic meters daily, has temporarily cut off supply since June 5 amid a dispute over fines relating to water quality. Flo Water stopped the supply to MIWD to protest the P1.5-million fine imposed by the latter for allegedly violating water quality parameters in their bulk water supply agreement. “The disconnection was based on our penalty… after they delivered discolored water from April 7-16, 2019. They wrote us a letter protesting the penalty but we cannot do otherwise because it was embodied in the contract that the color is part of the quality,” said Amarylis Josephine C. Castro, MIWD officer-in-charge general manager. In a letter to MIWD dated June 3, Flo Water President Rogelio C. Florete Jr. said the water district should pay the P1.5 million, not the other way around, and set a June 4 deadline, “otherwise, we will resort to all actions necessary to protect and/or vindicate our rights.” The discolored water is being blamed on the molasses spill incident in a sugar central in San Enrique, Iloilo that contaminated the Jalaur River, Flo Water’s main source of raw water. MIWD officials, in a press conference last week, said the supply cut would mean low water pressure in the areas covering Barangay Tabuc Suba in Jaro, Iloilo City to Leganes, Iloilo. “The most affected areas will be from Tabuc Suba going to Leganes but in some areas like La Paz, Pavia, and even in Iloilo City, we are still validating the data. The most affected areas do not necessarily mean that there is no water supply but just low water pressure,” said Jerry P. Guillergan, officer-in-charge of MIWD’s Engineering Department. Ms. Castro also assured the public that the situation is “under control” and that they will be resorting to water rescheduling to balance the supply delivery. MIWD legal counsel Roy P. Villa, meanwhile, said they are now looking at several legal remedies following the disconnection. — Emme Rose S. Santiagudo

Sarbay Fest 2019: A green kind of beach party

By Maya M. Padillo, Correspondent

GLAN, SARANGANI — The annual Sarangani Bay Fest (SarBay Fest) at the Gumasa Beach in Glan, which started in 2006, has in recent years been trumpeting the idea of environment-friendly and sustainable tourism.

This year, the provincial government amplified this message by, among other things, partnering with corporate giants Smart Telecommunications, Inc. and San Miguel Brewery Inc. (SMB) to set up innovative bins for recyclable trash.

SMB set up a towering bottle-shaped bin made of steel wire where people can chuck in their recyclable wastes.

Smart, the wireless unit of PLDT, Inc., made a turtle-shaped bin with a machine and sensor attached for counting the number of plastic bottles thrown in.

The machine also had an application wherein people who dropped their plastic can register their names and mobile numbers to get free load credits — P5 for every two cans or plastic bottles, and P25 for 10 recyclable items.

“On the shoreline we have huge installations where visitors took a selfie and instagrammed (their photos) and also placed their trash. This was another creative way of our Sarbay citizens to keep it clean and keep the environment and the beach at its best,” Michelle L. Solon, regional tourism council chair, said in an interview.

Other waste segregation areas were also set up while locals were again hired to serve as cleaners, with a pool of 150 that worked in groups of 50, each on an eight-hour shift to make sure that the beach stayed waste-free.

There were also interactive games and “planet camp” to drive the message of environmental protection, urban gardening demonstrations, coastal clean-up, and the scubasurero (scuba divers cleaning up underwater trash).

Various sporting events were also held, such as the 15-kilometer (km) swim from Maasim to Glan, which has become an iconic Sarbay activity. There was also a 50-km run from the province’s capitol all the way to Gumasa.

The evening shows featured a percussion competition, international DJs, popular bands, and fireworks.

“We have really made our bay closer to what we really want it to be, where we all partied and enjoyed but kept clean,” Ms. Solon said.

The Glan Municipal Environment Resources Office reported that garbage collected during Sarbay 2019 from May 31 to June 4 was 48 cubic meters, consisting of 30% biodegradable, 30% residuals, and 40% recyclable.

Ms. Solon said the Sarbay Fest is also an important income earner for the tourism sector, citing P65 million generated in 2018 from accommodations, food, environmental fees, and transportation, among others.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Macalintal says Smartmatic-TIM should pay for poll glitches, defective supplies

ELECTION LAWYER Romulo B. Macalintal said Smartmatic-TIM, the automated elections system (AES) provider of the Commission on Elections (Comelec), should be made to pay for damages relating to the May 13 midterm elections. In a statement on Sunday, Mr. Macalintal said President Rodrigo R. Duterte should focus on getting a refund from the defective materials such as malfunctioning vote counting machines (VCMs) and voter registration verification machines (VRVMs). The election lawyer’s statement comes after Mr. Duterte said in late May that Comelec should look for another AES provider that is “fraud-free.” “What President Duterte should do is to remind or pressure Comelec to ask Smartmatic and other suppliers to compensate our government for damages for the hundreds of VCMs and (VRVM) machines that malfunctioned; defective writing or shading pens; glitches in the transparency servers, and for all other technical problems that caused delays in the conduct of the 2019 elections,” the lawyer said. At the same time, Mr. Macalintal acknowledged that despite the malfunctions, there is weak proof that the VCMs used during the elections served as instruments of fraud after the Comelec released the initial findings of their random manual audit (RMA) last week. The RMA result showed 99.9953% accuracy, the highest accuracy rate ever since the AES implementation in 2010. “(W)ith the recent result of the Random Manual Counting which shows that the VCM’s count was 99.9% accurate and taking into consideration the past results of election protest since the first automated polls in our country in 2010 where the physical count of the ballots tallied with VCM’s count, it appears that the results of the 2019 elections were accurate and no electoral fraud was committed that compromised the integrity of these VCMs,” he said. — Gillian M. Cortez

Duterte bats for higher Hajj fund

PRESIDENT RODRIGO R. Duterte wants a higher allocation to help fund the annual Mecca pilgrimage of Filipino Muslim citizens, according to Communications Secretary Martin M. Andanar. The pronouncement comes amid the controversial use of Marawi rehabilitation funds by the Housing and Urban Development Coordinating Council (HUDCC) to sponsor the Hajj of some internally displaced residents in Marawi City. “The budget, I believe, will be increased,” Mr. Andanar said in a Cabinet Report sa Teleradyo interview transcript emailed by the Palace to reporters on Saturday. He explained that the President wants this because he believes that is what Muslims value the most and in recognition of Islam as a Filipino sub-culture. “Isa o dalawang mansion (One or two mansions), that is nothing compared to being able to go to Mecca para sa isang (for the) pilgrimage.” The beneficiaries, Mr. Andanar said, will be chosen in batches based on the different Muslim-indigenous people communities such as the Maranao and Tausug, among others. — Arjay L. Balinbin

Labor leaders say latest 94.9% employment rate due mainly to election period

LABOR LEADERS polled by BusinessWorld said that the Philippine Statistics Authority’s (PSA) latest report of a lower unemployment rate is mainly due to the election period, and stressed the need for more developments in the agricultural and industrial sectors to create more gainful and sustainable jobs.

Last week, the PSA reported in its Labor Force Survey (LFS) that the employment rate as of April 2019 was 94.9%, higher than the same period last year at 94.5%.

The labor force participation rate of Filipinos also grew to 42.24 million from 40.9 million during the month in review.

Nagkaisa Labor Coalition Spokesperson (NAGKAISA) Renato B. Magtubo said the growth of the labor force was only temporary due to activities relating to the May 13 midterm elections.

“(T)he recent LFS results paint a picture of the country’s economy, which is anemic in generating employment opportunities despite the government’s build, build, build program. It also tells the government and the private sector to train their efforts and resources to the development of local industries and agriculture in order to generate gainful employment to a growing population of the labor force,” he said on Saturday.

Bukluran ng Manggagawang Pilipino (BMP) Chair Leody De Guzman also said there is a need “for government to invest in national industrialization.”

“Buhayin ang industriya ng Garment, paunlarin ang pagtatanim at pag-hahayupan — mga labor — intensive ng industriya at sa huli ay buhayin ang industriya ng bakal na pundasyon para sa iba pang sub-industry. Hindi sustainable na trabaho kung pagtatayo lang ng mga imprastratura (We should revive the garments industry, develop farming and livestock, which are labor-intensive industries, and in the end, also revive the steel industry which is a foundation for other sub-industries. It is not sustainable to simply produce jobs through infrastructure building),” Mr. De Guzman said in a text message.

Associated Labor Unions- Trade Union Congress of the Philippines (ALU-TUCP) Spokesperson Alan A. Tanjusay expressed the same position that the lower level of unemployment was brought about by the election season that started in January.

He said on Friday, “The decline in unemployment is because many were hired during the campaign season. Many were temporarily hired to work in various tasks in the campaign of candidates.”

Unemployment as of April 2019 dropped to 5.1% from 5.5% in the same period last year this year while underemployment also saw a decline to 13.5% from 17%.

Mr. De Guzman said despite this decline, the number of unemployed Filipinos remains in the millions.

He cited the Social Weathers Stations (SWS) report in September 2018 that indicates local joblessness was still high.

“Ang 5.1% unemployment rate sa sariling sukatan ng Gobyerno ay malaki pa rin kumpara sa 4th Quarter ng taong 2016 na 4.7% lamang pero malayong malayo ito sa sukatan naman ng SWS na 19.7 % ang unemployment ngayon. Katumbas ng 9.7 M na walang trabaho (The 5.1% unemployment rate as measured by the government is still high compared to the 4th quarter 2016 that was only 4.7%, but that is still far from the measurement of SWS, which states current unemployment at 19.7%. This is still 9.7 million unemployed), he said.

“Artipisyal at pansamantala lamang ang pagtaas ng bilang ng may trabaho sa bansa (The rise of the employment rate is only artificial and temporary),” he added.

Mr. Tanjusay added that the government should have a stricter implementation of labor laws and ensure that businesses comply.

”Because government is always threatened by businesses with capital flight, shutdown and unemployment, the enforcement of labor laws is always lacking,” he said. — Gillian M. Cortez

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