THE Philippine Nickel Industry Association (PNIA) said it is pressing for a bigger role in an international industry group to better anticipate market developments.
“While we remain optimistic as an industry, there are uncertainties and volatilities in the world nickel trade that we must not ignore. We would be in a better position to leverage opportunities and mitigate the effects of headwinds if we engage in these international discussions,” PNIA President Dante R. Bravo said in a statement.
The International Nickel Study Group (INSG) was established in 1990, to improve transparency in the global metals market and to serve as a talking shop for issues related to the production and consumption of nickel.
INSG meets twice a year, in April and October. PNIA attended the October meeting in Lisbon with observer status.
PNIA Chairman Isidro C. Alcantara said INSG membership will help the industry better understand the market for nickel, which is moving beyond steel manufacturing with e-vehicle manufacturers gaining a bigger role.
“We need access to INSG’s wealth of knowledge and experience as input to our own road map to make it more responsive to global opportunities and become more effective in promoting inclusive and sustainable economic growth for our country,” he said.
The Philippines was second in nickel ore production in 2018 with 340,000 tons. Leading producer Indonesia will ban nickel exports next year to develop its own processing industry.
PNIA’s members include Agata Mining Ventures, Inc., Carrascal Nickel Corp., Citinickel Mines and Development Corp., CTP Construction and Mining Corp., DMCI Mining Corp., Marcventures Mining Development Corp., and Platinum Group Metals Corp. — Vincent Mariel P. Galang
PHILIPPINE workplaces are becoming more meritocratic with gender biases receding, People Management Association of the Philippines (PMAP) Executive Director Rene M. Gener said at the “Women Today” forum in Pasay City Tuesday.
“The workplace of the future will be dominated by the most competent in the office, regardless of gender. I can say that in the Philippines it’s happening,” Mr. Gener said.
Citing the Global Gender Gap Report 2018 issued by the World Economic Forum, Mr. Gener said: “We are already number eight and I see that in 2019, we will be number six, because we just work on competencies.”
Cignal TV and TV5 Network President and Chief Executive Officer Jane J. Basas said: “I believe so much in the principle of meritocracy, so it doesn’t matter whether you are male or female, or if you are a Gen-Xer, a boomer, or a millennial. At the end of the day, whoever can deliver and whoever can get the job done well, can get the job and will actually be rewarded in the process.”
The Philippine STAR, in partnership with Globe Telecom, Inc. and Women Influence Community Forum (WICF), organized the forum, which tackled issues that hinder the empowerment of female employees and leaders and how they could push for equality in their respective workplaces.
917 Ventures Managing Partner Issa G. Cabreira said male executives are “now giving women the tougher jobs.”
Ms. Basas concurred, saying: “Where I am now is actually because of my male mentors… My bosses gave me the job that I have right now because it’s the most difficult job to do. I mean TV5 has not been profitable for the past 10 years. Imagine handing that over to me and expecting me to create a plan that will work. And I tell you, I will do the job.”
Nina D. Aguas, executive chairman of Insular Life, noted that male company leaders have significantly changed their perception of their female counterparts.
“Things have changed. I think men are now more open to our ideas, and they are listening. They are very respectful, and they listen to what we say… It’s a welcome change for me,” she said.
Honorary Consul Armi L. Garcia of the Russian Federation in the Philippines said women bring a “sense of community, passion, love and intuition (to) the workplace.”
Mr. Gener noted that 49.6% of the Philippine workforce consists of women.
“If we do not nurture the talent of women, we are missing a lot. That’s why let’s help women lead the country and our organizations,” he said.
He also challenged the female members of society to “take on those jobs that are perceived to be dominated by men,” especially the manufacturing sector.
“I find that in the Philippines, we are very much privileged… we don’t have to fight the battle of ‘men are better than women’, it’s actually women side by side with men, driving the country towards where they want it to be,” Ms. Cabreira said.
Quezon City Mayor Maria Josefina G. Belmonte cited the need “to help our girls finish their education, have adequate health care, and… start their own enterprises.”
Manila Mayor Francisco Moreno Domagoso also highlighted the importance of “improving education, health care, and housing” as a way to help women.
“Women today have no limits and have more options. They can put up a business especially now with social media and the Internet,” Happy Skin co-founder Rissa Mananquil-Trillo said.
Vice-President Maria Leonor G. Robredo, who recently accepted leadership of the anti-drug war, said: “Perhaps it was my instinct as a mother… that I needed to do this sacrifice for the greater good.”
“Remember you are made for times like these, and you are made to survive even the most difficult times,” she said.
“We all need the kind of strength that draws from a deep well of love, compassion, humility, courage, and integrity.” — Arjay L. Balinbin
THE average farmgate price of palay, or unmilled rice, declined 0.3% week-on-week in the third week of October to P15.49 per kilogram (kg), the Philippine Statistics Authority (PSA) said.
According to the PSA’s Updates on Philippine Palay, Rice, and Corn price report, the average wholesale price of well-milled rice fell 0.2% week-on-week to P37.76 per kg. The average retail prices also fell 0.1% to P41.87.
The average wholesale price of regular-milled rice was stable at P33.70 per kg while the average retail prices fell 0.3% to P37.11.
Rice prices have been pressured since the implementation of the Rice Tariffication Law, which liberalized imports of rice in exchange for the payment of a 35% tariff on Southeast Asian grain.
The farmgate price of yellow corn grain averaged P12.15 per kg, down 0.4% week-on-week. The average wholesale price rose 0.1% to P21.20. The retail price rose 0.3% to P26.04.
The average farmgate price of white corn grain fell 0.6%, week-on-week to P13.39 per kg. The average wholesale price was up 2% at P17.13, while the average retail price rose 0.9% to P26.78. — Vincent Mariel P. Galang
NATIONAL Security Adviser Hermogenes C. Esperon, Jr. said cryptocurrencies and new digital channels open up new risks for the government to manage as it monitors the financing of terrorism.
In a keynote address Tuesday at the fifth Counter-Terrorism Financing (CTF) Summit hosted by the Anti-Money Laundering Council (AMLC) in Taguig, Mr. Esperon said: “The emergence or proliferation of virtual and cryptocurrencies adds to our dilemma. This is where we seek the expertise and good practices of our counterparts to improve on our system, as this is a relatively new domain in our jurisdiction.”
He said backers have been using social networking sites to fund terrorist activity.
“Our law enforcement continues its efforts to disrupt these financial networks even before funds are moved or transferred… Cutting off their lifeline is a crucial step to undermine their capabilities and frustrate their ability to carry out terrorist attacks.,” Mr. Esperon said.
In Southern Mindanao, illegal organizations use kidnapping for ransom and extortion to raise funds, according to Mr. Esperon. This supplements funding from family members, friends, and non-profit organizations, he added.
“As you know, in 2017, we experienced the most brutal onslaught of terrorism in our country in the siege of Marawi. Terrorism financing was integral (for) foreign terrorists in staging such acts and sustain it for a long time,” he said.
Mr. Esperon said oil smuggling was the primary source of funding for ISIS, while terrorist and criminal groups in Afghanistan raise money from opium.
“We do not want this to happen here in the Philippines or in the region,” he said.
In his speech, AMLC Executive Director Mel Georgie B. Racela said that regional cooperation and collaboration is expected to improve the effectiveness of enforcement work.
“For instance, the AMLC has referred 620 intelligence briefs and has conducted nine risk assessment and strategic studies, since 2017,” he said, noting that the council has frozen assets of over P1 billion between January 2018 and July 2019, including P52 million pesos in suspected funding for terrorism.
AMLC is hosting the fifth CTF Summit in partnership with the Indonesian financial intelligence unit, known as PPATK and the Australian financial intelligence agency AUSTRAC. — Luz Wendy T. Noble
PHILIPPINE EXHIBITORS generated sales of about $300 million at the 2019 China International Import Exposition (CIIE), more than double the year-earlier amount, the Department of Trade and Industry (DTI) said.
In a statement Tuesday, the DTI said the expo, with exhibition space of more than 240,000 square meters, attracts an average of 150,000 buyers from more than 100 countries.
“The big jump in sales since the last CIIE proves that China sees the Philippines as a significant source of agricultural and other products. This motivates us to continue our efforts in getting more exhibitors to the CIIE, as well as improving trade relations and market access through the conclusion of the Regional Comprehensive Economic Partnership (RCEP),” Trade Secretary Ramon M. Lopez said.
“Suppliers, for their part, should increase their production to meet Chinese market demand.”
Making up the Philippine delegation were 139 exhibitors, including 32 food vendors. Top selling products at the expo were fresh bananas, pineapples, mangoes and durian along with processed fruits and nuts and coconut products.
Among the exhibitors were tuna canner Century Pacific Food, Inc., which recently launched in Chinese market, along with San Miguel Corp., Monde Nissin Corp., and Fisher Farms, Inc.
Trade Undersecretary Abdulgani M. Macatoman said that the exhibitors reflected the Philippines’ strengths in exporting mango, banana, papaya, pineapple, and young coconut.
“Undersecretary Macatoman observed that with the stronger Philippine-China relations and through China’s liberalization program and the CIIE, there will be more Philippine food products sold in China soon,” the statement said.
DTI and the Department of Agriculture expect “much bigger participation” from the Philippines in the 2020 CIIE. — Jenina P. Ibañez
PANAY ELECTRIC Co., Inc. (PECO) said Iloilo City’s plan to auction the land on which its electric poles stand is the subject of pending litigation, and that it made an initial property tax payment to a court hearing the dispute.
“Since 2017, we have had a pending case with the Local Board of Assessment Appeals questioning the Real Property Tax (RPT) assessment issued by the City of Iloilo in 2016. As such, the RPT assessment is not yet final and conclusive,” the company said in a statement.
PECO said it was in talks with Iloilo City’s government business permits and licensing office.
“In fact, we tried to make a payment but this was refused by the City Treasurer’s Office constraining us to consign the RPT in court. This means that we have paid an amount to the (Regional Trial Court) which they now hold,” it said.
“The bigger question is why this issue is being resurfaced now. It seems very clear that this is part of a continued black propaganda being waged by our rival to taint our image and discredit our organization. Despite these, PECO is still committed to serving the people of Iloilo as we have done so in the last 95 years,” it added.
The company was responding to Iloilo City Mayor Jerry P. Treñas’ announcement the other day that the city government has scheduled the auction of PECO’s assets to pay for the distribution utility’s unpaid real estate tax liability and penalties amounting to P106 million, dating to 2006.
Mr. Treñas said the move would solve the local government’s collection problem with PECO whose liability allegedly piled up through three mayors despite demand letters to the company.
His office said PECO’s tax liability had been a result of its refusal to pay the real estate tax assessed by the City Treasurer’s Office on the land where its electricity posts stand. The land will be auctioned on Dec. 12. — Victor V. Saulon
THE MAIN INDEX was flat yesterday as investors waited on the sidelines for fresh developments in the US-China trade talks.
The 30-member Philippine Stock Exchange index (PSEi) inched up 2.96 points or 0.03% to close at 8,012.34 on Tuesday, as the broader all shares index shed 0.66 points or 0.01% to 4,788.62.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the quiet trading was due to investors’ “wait-and-see stance ahead of this week’s events.”
He said in a mobile message investors are looking at the results of the US House Intelligence Committee’s first public impeachment hearings and US Federal Reserve Chairman Jerome Powell’s testimony to the Congress on Wednesday.
Research Associate Piper Chaucer E. Tan of Philstocks Financial, Inc. gave the same reason when asked for comment on the stock market’s performance.
“This is hinting that investors are still awaiting for more earnings, but so far we think that earnings are still in line with our expectation…,” he said in a text message. “Offshore risks are shrugging off also by the likes of Hong Kong unrest and US China trade spat,” he added.
Wall Street was mixed at the end of Monday’s trading. The Dow Jones Industrial Average creeped up 0.04% as the S&P 500 and the Nasdaq Composite indices fell 0.20% and 0.13%, respectively.
Meanwhile, markets in the Asia Pacific were mostly positive. Japan’s Nikkei 225 and Topix indices rose 0.81% and 0.33%, respectively, as China’s Shanghai SE Composite index added 0.17%, South Korea’s KOSPI index improved up 0.79% and Hong Kong’s Hang Seng index went up 0.52%.
Over at the PSE, two sectoral indices advanced, led by property which rose 20.16 points or 0.48% to 4,143.47. The other was services, which climbed 4.12 points or 0.26% to 1,553.68.
The rest of the indices fell. Financials dropped 5.59 points or 0.29% to 1,923.37; industrials went down 23.40 points or 0.22% to 10,410.90; holding firms gave up 7.43 points or 0.09% to 7,897.27; and mining and oil declined 2.79 points or 0.03% to 8,870.17.
More stocks declined than advanced on Tuesday, 100 against 76, as 57 others ended flat.
Tuesday ended with a trading volume of 489.23 million worth P4.73 billion, lower than the P5.39 billion seen on Monday.
Foreign investors continued to flee the market, with net selling logged at P392.04 million, lower than P419.98 million the day prior.
Meanwhile, Singapore led gains in Southeast Asia ahead of retail sales data due later in the day.
Singapore shares advanced 0.3%, after losing about 1.4% in the past two sessions on weakness in industrial stocks.
However, most other Southeast Asian stock markets were little changed in thin trade ahead of a speech by US President Donald Trump on Tuesday that could provide clues on the status of an interim trade deal with China. — Denise A. Valdez withReuters
THE PESO bounced back on Tuesday as the market took a wait-and-see approach amid global trade uncertainties and a possible pause in the central bank’s monetary policy.
The local unit closed at P50.73 against the greenback on Tuesday, strengthening by 13 centavos from its P50.86 per dollar finish on Monday, according to data from the Bankers’ Association of the Philippines.
The peso opened the session at P50.78 against the dollar. Its weakest point for the day was at P50.915 while its intraday best was at P50.68 versus the greenback.
Dollars traded on Tuesday grew to $1.553 billion from $1.046 billion seen on Monday.
A trader said the peso’s rebound came after the market opted to take a wait-and-see stance amid global trade developments.
“[Peso was stronger] on the back of weak dollar overnight due to uncertainties of US’ trade with China and Europe,” a trader said in a phone call.
Meanwhile, another trader attributed the peso’s strength to the market factoring in a possible pause in monetary easing from the central bank.
“The peso strengthened on expectations of steady monetary policy decision from the Bangko Sentral ng Pilipinas this week,” he said in an email.
Most Asian currencies were rangebound on Tuesday, as investors took to the sidelines awaiting further clarity on an interim trade deal between the United States and China.
Markets were cautious ahead of a speech by US President Donald Trump to the Economic Club of New York later in the day for any new word on the Sino-US “phase one” trade pact.
The optimism around a possible resolution to the protracted trade dispute faded a bit after Mr. Trump said on the weekend there had been incorrect reporting about US willingness to lift tariffs on Chinese goods.
Mr. Trump is expected to announce this week he is delaying a decision on whether to slap tariffs on cars and auto parts imported from the European Union, likely for another six months, according to EU officials.
The Trump administration has a Thursday deadline to decide whether to impose threatened “Section 232” national security tariffs of as much as 25% on imported vehicles and parts under a Cold War-era trade law.
US Commerce Secretary Wilbur Ross, whose agency is overseeing an investigation into the effect of auto imports on US national security, said on Nov. 3 the United States may not need such tariffs after holding “good conversations” with automakers in the European Union, Japan and South Korea.
Meanwhile, back home, the BSP’s Monetary Board will hold its seventh policy setting meeting on Thursday, Nov. 14.
BSP Governor Benjamin E. Diokno told ANC and Bloomberg earlier this month that the central bank is done cutting rates for this year.
For today, the first trader sees the peso ranging from P50.65-P50.95 against the dollar, while the second trader said the local unit could play around the P50.65-50.85 band. — Luz Wendy T. Noble withReuters
I guess she caught us all off guard. I had been sharing reactions with friends and associates; and we all seemed to agree that President Rodrigo Duterte’s macho challenge to Vice-President Leni Robredo to take over the “drug war” was really a trap. After all, he was the more seasoned politician. And after all, she was only a girl.
Well, her response in just a few days was to accept the dare. First, it was supposed to be for her to become the “drug czar.” The firm offer in writing, it turns out is a co-chair post in a “committee” (Inter-agency Committee on Anti-illegal Drugs, or ICAD) not even an agency. It isn’t very clear yet. Is she, or isn’t she now a member of the Cabinet? After all, she had already been eased out of that.
It looks like Duterte himself was caught off guard. He hasn’t been sleeping well and has to take a three-day leave to catch up on lost sleep. So, since he has said that he was giving up the job of solving the drug problem to the vice-president, he will have to work “under cover” now that she has taken on the challenge. He also needs to make himself available for a formal meeting to discuss the terms of the job he has offered verbally and in writing. He is probably figuring out how much leeway to give her without himself losing face.
The Vice-President seems to be clear on how she plans to go about the job. Her goals seem to be modest: save at least one life, improve the lives of victims of drug addiction, punish those guilty of extra judicial killings and those responsible for production and wholesale distribution of illegal drugs, all under the rule of law and respect for human rights. She seems to recognize that the illegal drug problem cannot be totally eradicated. Former Colombian President Cesar Gaviria, who was responsible for the killing of notorious drug lord Pablo Escobar, had written an opinion piece in the New York Times entitled “Duterte is repeating the mistakes I made.” Gaviria is now a private citizen but it is well worth reading.
Meanwhile, VP Robredo is moving fast. She has met with former Philippine National Police chief and now Senator Panfilo Lacson who has offered to be one of her advisers, given his experience in dealing with the drug problem and other heinous crimes. She is also meeting with leaders in civil society, behavioral scientists, educators and other stakeholders. Lacson has cautioned her against her announced plan to join police-led operations against drug distributors, despite encouragement to do so by her ICAD Committee co-chair and Philippine Drug Enforcement Agency (PDEA) head Aaron Aquino, who does not disguise his bias in favor of Duterte’s positions on the drug issue.
It is clear to see that Vice-President Leni has boldly stuck her physical and political neck out in accepting Duterte’s dare. It is not like her to act without praying and thinking things through. When she accepted President PNoy’s offer to be Mar Roxas’ running mate in the last presidential elections, she took a few days to think, and when she accepted, she went all out to campaign all over the country, and to win, despite all odds.
What she has taken on is daunting but certainly worthwhile. First of all, the “drug war” strategy of tokhang — which primarily targeted drug addicts, killing over 5,000 users, mostly young and poor, with outright and public encouragement by the President to “kill, kill, kill” — has failed to meet its objectives as Duterte himself has admitted. Drug lords such as Peter Lim, who had been identified by Duterte himself as targets, seem to have escaped.
Meanwhile, we can no longer sit on fences on this issue. The Vice-President has entered the lion’s den. This includes not only the drug criminals, but also those who would rather she fail than succeed, which more likely than not includes most of the government bureaucracy (executive, judiciary, and legislature) whose help she certainly needs to accomplish her objectives. We are aware of the corruption that well-funded drug lords can use to obtain protection and support from the local governments, judiciary, and the police.
Leaders in civil society, business, and other taxpayers must mobilize to help the Vice-President, if only to pressure those in government to support rather than get in her way. This is more than an option. We have to consider it an obligation. We have to mobilize a critical mass of vocal and active supporters to demonstrate to the government that the citizenry of this country will ensure that the campaign against illegal drugs and the harm that it is doing to our people is transparent and follows the rule of law. We cannot continue our descent into barbarism. It is time to turn this campaign around. New thinking is needed and we must have all law-abiding hands on deck. We must also be open to technical assistance and cooperation from international development, intelligence, and justice agencies.
Teresa S. Abesamis is a former professor at the Asian Institute of Management and Fellow of the Development Academy of the Philippines.
What do people do in their old age? “Travel the world,” is the most common advice. On the contrary, my advice is for people to see the world while they are still young. A walking tour around cobble-stoned streets and ancient ruins isn’t the kind of “relaxation” that brittle bones need, and an 80-year-old hasn’t much use for new knowledge and insights that one can easily Google, anyway.
Those in their late teens and early 20s can benefit much more from travel. It broadens their understanding of the world, imbues them with greater empathy and a deeper appreciation of humanity, provides them with “street-wise” education and tests their survival capabilities.
The young are also better fit to savor the sights and thrills, and face the hair-raising challenges, as well as the perilous experiences that old folks can only vicariously enjoy from watching TV.
Among young Europeans, world travel, preferably with a backpack, is high on the list of things to do upon finishing college, before they look for employment or pursue their chosen careers.
According to Annie Misa Hefti, a Swiss-Pinay friend in Switzerland, that was exactly what her two sons did as soon as they graduated from college. Both backpacked around Asia for a year, separately. In fact one of the boys was in Indonesia when that country was devastated by a tsunami. He not only survived that, he also built up an impressive portfolio of photographs that would have been the envy of professional lensmen.
I think that one of the best decisions that my wife and I made was allowing our only daughter, Christina, to participate in an exchange program that had her finishing high school in the US — by herself, without the support of parents, siblings, relatives, and childhood friends.
When she left home, she was a naïve little girl of 16. One year later, she had matured so remarkably that my wife and I were encouraged to also set our remaining three boys “adrift” — released from the traditional bonds, as well as the yayas (nursemaids) and househelp who had spoiled them from early childhood.
Overnight, our teenage boys had to adjust to life in America, competing and excelling in academics and sports in school, waiting at tables, mowing lawns, shovelling snow, and washing cars to earn their pocket money, and appreciating the dignity of labor.
My wife and I did not have the advantage of parents who could afford to send us farther than Manila. Indeed, for two kids growing up in Tacloban, Leyte and Jovellar, Albay, traveling abroad was the stuff of fantasy.
At any rate, in our old age, we have decided to make up for what we missed in our youth. We have visited most of Asia (although not as much of the Philippines as we should), have seen much of the US (in fact, have driven cross-country), and we have seen a lot of Europe.
What always fascinated us were the countries of Latin America, in addition to Mexico, mainly because of our shared colonial history and the fact that we Pinoys are considered the Latinos of Asia.
It was thus with great eagerness that we signed up for a 16-day Royal Caribbean cruise to Central America, setting out from Los Angeles at the end of October and culminating in mid-November in Fort Lauderdale, Florida. The cruise ship, Vision of the Seas, spent the first 11 days sailing the Pacific Ocean. On the 11th day, we crossed the Panama Canal and made our way to the Caribbean Sea and the Atlantic Ocean.
STIL/UNSPLASH
We have been to Cabo San Lucas and Puerto Vallarta in Mexico, a country so reminiscent of the Philippines. But what we did not expect was that the rest of our Latin American trip would also remind us of the Philippines — but in less than pleasant ways.
After Mexico, we weighed anchor in Quetzal in Guatemala, billed in the tourist brochures as “the heart of the Maya World,” and took a tour bus to Antigua, a place where time seems to have stood still. The cobble-stone covered streets are so narrow that we had to transfer to mini-vans to be able to navigate the city.
I could have sworn I was in the Mountain Province upon seeing the indigenous vendors hawking their handicrafts, flutes, and ceremonial masks. In terms of physical features, they could have been Igorots transplanted to the Mayan world.
My heart went out to these people, because of the thousands from among them who braved the long trek to Mexico and up to the US border to seek asylum and respite from the poverty and violence in their homeland — the same poor people whom President Donald Trump has unjustly branded as terrorists, rapists, drug dealers, and the scum of the earth. Trump has no appreciation of the fact that the forefathers of the people he so unkindly denigrates established a Mayan civilization when Trump’s ancestors were still living in caves.
Antigua has 30 Catholic churches, a testament to the dominant presence of the Cross that was planted at the point of a sword — so much like the Philippines.
Our next port of call was Puntarenas in Costa Rica, a country that our tour guide described as having two main seasons — “A rainy season and a very, very rainy season.” Typically, we were treated to a folk dance show with cute little girls in colorful costumes. We were also handed bananas upon our arrival, bananas and coffee being the principal agricultural products of Costa Rica.
That unkind joke about the “Central American banana republic whose economy is sagging” apparently does not apply to Costa Rica. Our tour guide took justifiable pride in the very high literacy rate of Costa Ricans (upwards of 90%) due to the fact that one former military officer who assumed the presidency decided to dismantle the country’s armed forces and used the savings for education.
Then came the fabled Panama Canal crossing. Our ship and several others — mostly cargo vessels — were guided through three extremely narrow channels, called locks, that had an allowance of only a few feet on either side, ushering us into the Caribbean Sea and the Atlantic Ocean. I swear the Panama Canal is an unbelievable feat of engineering.
Panama reminded me of the Philippines for reasons other than a shared colonial history. President Rodrigo Duterte and former Panamanian strong man Manuel Noriega both told America to go to hell — or words to that effect. Unlike Duterte, however, Noriega became so obnoxious that the US slapped him with drug dealing charges and locked him up in federal prison.
During the early part of Duterte’s incumbency, his enemies began to place bets on rumored US plans to depose him, i.e., via Plan A or Plan B or Plan C — more specifically Plan CIA. Fortunately none of these plans has been activated, probably because Duterte has been behaving more civilly towards America and Donald Trump seems to have a fondness for would-be dictators.
As I write this, our ship has docked in Cartagena in Colombia, another country reminiscent of the Philippines and of Duterte. Aside from Colombian coffee, the country is notorious for drug cartels.
The rest of our cruise will bring us to Grand Cayman and the beaches of the Caribbean, which I do not find particularly appealing. And then on to Fort Lauderdale in Florida.
Florida is said to be a retirement haven. But our meager Social Security pensions can better afford the Philippines. Besides, touring the archipelago still ranks high on our bucket list.
Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.
With the enactment of Republic Act No. 11360, rank-and-file employees of restaurants, hotels and similar establishments are now entitled to 100% of the service charges collected from customers.
R.A. No. 11360 — or “An Act Providing that Service Charges Collected by Hotels, Restaurants and other Similar Establishments be Distributed in Full to All Covered Employees” — amends Article 96 of the Labor Code of the Philippines, which previously provided that 85% of the total service charge collected by the establishments would be distributed to covered employees, while 15% would account for losses and breakages and be given to managerial employees, at the discretion of management in the latter case. Significantly, under R.A. No. 11360, “managerial employees” refers to those “who lay down and execute management policies or to effectively recommend such managerial actions,” and they are excluded from getting a share in the service charges collected under the new law. This definition is consistent with the definition of managerial employees under Section 2, Rule VI, Book III of the Implementing Rules and Regulations (IRR) of the Labor Code. Notably, these definitions under R.A. No. 11360 and the IRR are similar to the definition of supervisory employees under Article 219 (m) of the Labor Code or “those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.” Thus, arguably, employees who fall under the definition of supervisory employees in the Labor Code are subsumed under the definition of managerial employees under R.A. No. 11360 and the IRR and they may, thus, likewise be excluded from the distribution of service charges. It appears then that only rank-and-file employees are entitled to the distribution of service charges under R.A. No. 11360.
With the new law, establishments which previously chose to allot the 15% or a portion thereof of the service charges collected to losses and breakages are no longer required to set aside an amount to account for such purposes, which may result in an increase in costs as management will be forced to fully absorb such losses and breakages. Furthermore, if the 15% was previously distributed to managerial employees, they will lose a significant amount of their income. This may likewise affect the quality of service they provide to their customers considering that the service charge distributed to them is a form of incentive for them to do well in their jobs. Without such an incentive, managerial employees may lose the motivation to perform their best in their work. Thus, management may need to formulate a scheme to incentivize management employees to ensure quality performance.
Prior to the enactment of R.A. No. 11360, the IRR on Service Charges provides that in case an establishment, which previously collected service charges, decides to discontinue such collection, the share of the affected employees shall be considered integrated in their wages, the basis of which will be the average monthly share of each employee for the past 12 months immediately preceding the abolition or withdrawal of such charges. This is to account for any possible diminution of benefits which is prohibited under Article 100 of the Labor Code. Assuming that the Department of Labor and Employment (DOLE) will issue an IRR which is consistent with the foregoing provision of the current IRR on service charges, establishments which discontinue the collection of service charges will need to comply with the provision on integration of wages.
Consequently, the integration of wages of covered employees would mean an increase in their basic pay. This will affect not only the salaries of the employees but also other wage-related benefits, such as overtime pay, holiday pay, 13th month pay, retirement pay, and leave benefits under the law. An increase in the basic pay of the covered employees means an increase in costs for establishments to be able to pay these government-mandated benefits. Furthermore, the integration may likewise lead to a distortion of salaries and benefits between rank-and-file employees and managerial employees, which may result in a scenario wherein the former earn close to or possibly even more than what the latter earn.
In this regard, if the law itself mandates the discontinuance of the grant of service charges to managerial employees, can the latter invoke the integration rule and claim that the amounts that they had previously been receiving as their share of the service charges should be integrated in their salaries? This appears to be the common concern of hotels, restaurants, and other covered establishments, which they conveyed to the DOLE Secretary. My considered opinion is that the integration rule does not apply to managerial employees under this scenario, since the discontinuance of the distribution of service charges as to them is mandated by law, not the unilateral decision of their employers. It can be argued that since establishments are merely complying with the provisions of R.A. No. 11360, then the rule on non-diminution of benefits will not be violated once establishments cease to distribute service charges to its managerial employees.
RA No. 11360 was published on Aug. 19 and became effective 15 days after its publication or on Sept. 3 of this year. Correspondingly, DOLE is mandated to issue the corresponding IRR of the new law within 60 days from its effectivity, which as of date, has yet to be issued. Hopefully, the new IRR can make further clarifications of the new law.
The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.
Kycia Vanelie G. Cue is an Associate of the Labor and Employment Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).
Our rivers, lakes, seas, and oceans are part of what we call the “blue” economy. It is similar to what is often referred to as the “green” economy, only that it represents the economic development of marine and coastal ecosystems.
The Philippines, like other coastal and island states, depends on tourism and fisheries. In 2015, our ocean economy was valued at $11.81 billion while our ecosystem services were valued at $17 billion. Our blue economy is an important cornerstone in food security, health, livelihood and a source of employment, trade, shelter, renewable energy, and even climate change mitigation.
While continuous technological improvement has helped realize new growth possibilities, unregulated human-based activities have seriously affected our coasts and oceans. Plastic waste leakage — i.e. plastic waste leaking into our waterways and oceans — is at alarming levels.
In Manila Bay alone, 3,810 tons of garbage, water hyacinths, and silt was collected from the bay’s coastline and drainage system as of two months ago. In other reports, collected waste reached 27,000 tons of garbage. More than 50% of waste collected, according to waste audits, is plastic.
Addressing both solid waste and wastewater elements of the Manila Bay clean-up and rehabilitation, the Department of Environment and Natural Resources (DENR) continues to strengthen coastal clean-up operations, partnerships with the private sector, and monitoring of non-compliant establishments in the bay area. An example is the Adopt-an-Estero program, launched in 2013, where several communities have clean-up activities in the waterways of Manila.
What it lacks though are localized initiatives and monitoring to disincentivize consumers and households from littering and encourage proper segregation.
In Boracay, the local anti-littering policy stipulates that violators could face a fine or be made to render community service from eight to 16 hours. There is also a proposal to arrest citizens caught littering. While local policies and regulations may vary in intensity and extent, one thing is for sure: coastal clean-ups can only do so much.
This makes collection, treatment, recycling, and proper disposal, especially in coastal areas, critical. It needs to be supported by wastewater management system and infrastructure. Many of the recycling facilities are in Metro Manila and Metro Cebu and even they only process a sparse volume of waste compared to what is generated on a national level. Extensive land-based and sea-based solutions are essential to address plastic waste pollution sustainably.
In simple terms, that means keeping the trash out of our oceans. Waste management is key for reducing pollution of the coastal and marine environment. We need efficient waste-management systems, particularly an upscaling of our recycling system.
Coca-Cola Philippines, Inc. is one of many global businesses that have developed game-changing technology to be part of the solution. Anchored on its “World Without Waste” initiative, Coca-Cola Phils. is investing in a state-of-the-art recycling and reprocessing facility in the Philippines, the first in Southeast Asia. In line with the concept of the circular economy, the recycling facility will collect, sort, clean, and wash post-consumer PET plastic bottles and turn them into new bottles using advanced technology. The bottling subsidiary also intends to use an average of 50% recycled content in its packaging. In fact, it recently launched country’s first-ever food-grade PET bottle made of 100% recycled material — The Viva! Eco-bottle.
Any large-scale recycling facility is dependent on waste inputs, a minimum amount that makes it economical to operate. That should not be a problem for the Philippines — the amount of plastic recyclable waste in our landfills and waterways is unfortunately a somber manifestation that recycling should be a viable commercial venture. However, a critical component is to close the loop of collection to ensure the supply of plastic recyclables.
In line with this, Coca-Cola Phils. also entered into a public-private partnership with the City of Manila to allocate recycled PET (RPET) benches, collection bins, and capability training for the Manila Bay clean-up. A similar partnership was also initiated in Davao by working with its communities and local government units (LGUs). Collected PET bottles are diverted to the recycling system and transformed into high-value products such as chairs and benches.
This is a sustainability model that can be adapted and replicated in other LGUs. It is a source of green jobs and livelihood opportunities, and an innovation for environmental management to plug leaks in the circular economy of waste.
In the larger scheme of things, such initiatives help support the goal towards a healthy and resilient “blue” economy, with abundant opportunities that can be leveraged for sustainable development. Cleaning up Manila Bay, for instance, means opening and diversifying economic opportunities in tourism and heritage conservation, among others.
An efficient Philippine recycling system that is well integrated within a circular economy, upscales the economic value of waste down to the communities. It reinforces and incentivizes environmental awareness and discipline in segregation and recycling. It also creates a momentum to develop other segments of the waste management system.
Keeping our oceans clean is not just important for economic sustainability, it is essential for survival. We are all part of the circular economy of waste. There is already a global momentum to build government, private, and community partnerships for stronger recycling systems, solid waste and wastewater infrastructure, but plugging leakage will depend on the discipline of each consumer.
Vanessa Pepino is a Non-Resident Fellow of the Stratbase ADR Institute.
