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Senate measure seeks 5th round of salary hike

A BILL that desires to give government employees their fifth round of salary increases — a key proposal of the Duterte administration — has been filed at the Senate.

Senator Emmanuel Joel J. Villanueva proposed an average salary increase of 10% yearly from 2020 to 2022 under Senate Bill 1136 or the Salary Standardization Law V, according to a copy of the measure.

The increase will cover the nations’ 1.7 million career and non-career civil service employees.

“This bill seeks to improve the spending power of ordinary government employees whose spending power has been eroded by inflation,” Mr. Villanueva said in the bill’s explanatory note.

The proposed measure was among the bills mentioned by President Rodrigo R. Duterte in his fourth State of the Nation Address in July. He mentioned the inclusion of teachers and nurses.

The bill will cover all civilian government personnel, including those under the Executive, Legislature and Judiciary. Workers in government-owned and controlled corporations, government financial institutions and local government units will also benefit from the proposed law.

Speaker Alan Peter S. Cayetano earlier said congressmen would prioritize measures that Mr. Duterte mentioned in his yearly address to lawmakers.

Albay Rep. Jose Ma. Clemente S. Salceda earlier said the measure would cost the government about P110 billion for three years.

The last tranche of the salary increase that covered both civilian and military personnel in the government was implemented in March.

There are two other Senate bills on the salary increase and at least five counterpart bills at the House of Representatives pending at the committee level. — Charmaine A. Tadalan

Bill to widen public school career ladder

A PROPOSED law that seeks to increase teaching positions and expand the career ladder in public schools has been filed at the Senate.

Senator Ralph G. Recto filed Senate Bill 1131, which will add four more teaching positions and supply the missing rungs in the Education department’s career level.

“Many teachers in the teaching career line are stranded for years, in dead-end positions where their promotion is delayed or deemed impossible because of missing rungs in the Department of Education career ladder,” he said in the bill’s explanatory note.

“One reason often given on why only a few of the more than 200,000 Teacher III holders eventually make it to the Master Teacher items is the lack of available positions and the corresponding funding,” he added.

Under the bill, the Budget department will create the following teaching positions with the corresponding salary grades (SG): Teacher IV with SG-14 (P27,755); Teacher V with SG-15 (P30,531); Teacher VI with SG-16 (P33,584) and Teacher VII with SG-17 (P36,942).

Creating these positions will address the gaps in the professional continuity of teachers, Mr. Recto said.

“The four-salary grade gap between a Teacher III (SG-13) and a Master Teacher I (SG-18) pushes some of the teachers to shift to the school administration career line starting with Head Teacher I (SG-14) for higher compensation even as the job veers away from actual classroom teaching and regardless of their aptitude for supervisory duties and responsibilities,” he said.

Education officials have said they were looking at adding more positions after the first three teacher ranks, citing the large gap between them and the master teacher levels. Teacher III is immediately followed by Master Teacher I.

Education Undersecretary Tonisito M.C. Umali had said they could add the positions even without a law. — Gillian M. Cortez

Food sector must treat seniors fairly, Labor dep’t says

THE Labor department yesterday asked employers to follow the law when hiring senior citizens and persons with disabilities (PWD).

The government supports the recent surge in establishments especially in the food industry hiring seniors, but companies must “provide their senior citizens and differently abled workers with equal wages and benefits,” the agency said in a statement.

“We noticed this good development in companies that employ senior citizens and PWDs because of the intensified advocacy of the government,” Labor Assistant Secretary Benjo Santos M. Benavidez said. “However, we would like to remind them that these senior citizens and PWD workers are also entitled to equal wages and opportunities in the workplace.”

The Magna Carta for Disabled Persons states that qualified people with disabilities must enjoy the same terms and conditions of employment, and the same compensation, benefits and incentives as a qualified able-bodied worker.

Anti-Age Discrimination in Employment Act provides that the state should promote the rights of all employees and workers, regardless of age, to be treated equally.

The Labor department said the four-hour work scheme in fast-food establishments should entitle senior employees a minimum wage, while they should get an overtime pay if they work for the standard eight hours. — Gillian M. Cortez

Over 84,000 people affected by typhoon Quiel

A TOTAL of 84,635 people have been affected by typhoon Quiel (international name: Nakri) in the northern Luzon regions, with six reported dead, the national disaster management council said as of Nov. 10. Four of those who died were in Cagayan, the most affected province. The provincial government has already declared a state of calamity, which would allow the release of emergency funds. Relief operations were continuing for those in evacuation centers as well as those at home in still flooded areas. Quiel exited the Philippine area on Saturday but the affected provinces were still experiencing rains as of Sunday due to the tail-end of a cold front, according to weather bureau PAGASA. Four of those who died were in Cagayan, two due to drowning, another from electrocution, and another from a collapsed wall caused by a landslide. The two other fatalities died in a landslide in Kabugao, Apayao. The Department of Public Works and Highways reported 56 roads and 10 bridges affected, which were still mostly not passable over the weekend. Damage to crops in the largely agricultural regions have yet to be assessed.

Adjusted shopping mall hours start Monday

SHOPPING MALLS in Metro Manila will move their opening time to 11 a.m. starting today, Nov. 11, as part of the traffic alleviation measures for the Christmas and New Year holidays. Mall operators agreed to the adjusted time, which will be in effect until January 10 next year, following a meeting last month with the Metro Manila Development Authority (MMDA). Additional private security personnel will also be deployed to manage the anticipated increase in vehicles going in and out of mall parking areas, which cause traffic gridlock along public roads. There will also be no mall-wide sale events on weekdays during that period. MMDA General Manager Jose Arturo S. Garcia, Jr., in a statement after the Oct. 22 meeting, said with more than 100 shopping malls in the capital, these are considered “traffic generators during the holidays and delaying their operating hours by an hour could help ease the traffic situation.” Other measures that will be implemented include the suspension of road reblocking along EDSA and C5 for projects involving utilities, except in cases of emergency. Work for ongoing government flagship projects, however, will continue. “Traffic is already bad and we expect it to get worse as the number of vehicles increases daily,” Mr. Garcia said.

Big Bad Wolf returns to Davao

THE BIG Bad Wolf (BBW) is holding its second book sale in Davao City on Nov. 11–22, open 24 hours a day on those dates at the Enderun Tent in Azuela Cove. Jacqueline Ng, founder and executive director of BBW, said they are bringing about one million books this year with a wider title selection of fiction, non-fiction, children’s books and premium titles. “Last year, we saw 34% (of sales) are fiction, which is the highest compared to non-fiction and children,” Ms. Ng said in an interview. “Normally for the first year we don’t know what to expect… every market is different and every region is different. This year, we used our history from last year to create a better selection for this year,” she added.

GK PARTNERSHIP
The BBW has also partnered with Gawad Kalinga, through its corporate social responsibility arm Red Readerhood (RRH), for the distribution of donated books to remote villages, communities, and elementary schools. Ms. Ng said they have collected 13,679 books from Manila, Pampanga, and Cebu for distribution in Davao. — Maya M. Padillo

Asiana Airlines plane makes emergency landing at NAIA

AN AIRPLANE operated by South Korea’s Asiana Airlines (020560.KS) bound for Singapore made an emergency landing in Manila late on Saturday due to an engine problem, a company spokesman said. The Asiana Airlines’ Airbus 350 plane took off from Incheon in South Korea with about 310 passengers on board and landed in Manila after one of its engines failed, the spokesman said on Sunday. No one was injured in the incident, he said. — Reuters

Iloilo airport, ranked among Asia’s 20 best by travelers, in urgent need of expansion

THE ILOILO International Airport, one of only two Philippine airports voted among the 20 best in Asia in an online survey, has actually been operating at double its capacity.

Department of Tourism-Western Visayas (DoT-6) Regional Director Helen J. Catalbas said while they toast to the recognition, it also highlights the need to fast-track the airport’s expansion.

“It ranked number 18 because it’s crowded, but once we expand, who knows we can further improve our rating,” she said in an interview.

The government-run airport, located in the town of Cabatuan about 30 kilometers from Iloilo City, ranked 18th in the the 2019 survey of airport guide and resource site sleepinginairport.net.

The other Philippine airport that made it to the list at number 16 is the Mactan Cebu International Airport, managed by private firm GMR-Megawide Cebu Airport Corp.

“Now, the airport seems okay because we are just starting with our MICE (meetings, incentives, conferences, exhibitions) promotions, but as we go on with our campaign, more people will go to Iloilo. That is the reality, so if we want to have more tourists we need to expand our airport,” Ms. Catalbas said.

The Iloilo airport, which opened in 2007, was designed to cater to 1.2 million passengers a year, according to the Civil Aviation Authority of the Philippines. In recent years, the airport has been handling 2.4 million passengers annually.

“Our airport already reached its passenger capacity, eight years ago before the target,” the DoT official said.

CAAP Iloilo Terminal Supervisor Art Parreño said there has been no recent update on the proposed airport expansion.

“We don’t have any information as to the realization of that, but how CAAP wishes that the project will be pursued,” he said in a phone interview.

In June, CAAP granted an original proponent status to the unsolicited proposal submitted by the Villar Group of real estate magnate Manuel B. Villar, Jr.

The proposal has been forwarded to the National Economic and Development Authority for evaluation and approval before undergoing a Swiss challenge.

Mr. Parreño said the expansion plan is particularly needed for the passenger terminal building.

“The passenger terminal building that we have right now was constructed to cater to domestic operations… We expanded to Hong Kong and Singapore destinations and now more and more airlines are offering new domestic destinations like the new Iloilo-Clark destination offered by Air Asia and Cebu Pacific,” he said.

Ms. Catalbas said the airport’s readiness to handle more passengers is a key component to the “Meet you in Iloilo” campaign, a P50-million program specifically targeted to promote the city as a MICE destination.

“We need all new facilities as addition to the capacity of Iloilo City as it poises itself to be a top MICE destination in this part of the country.” — Emme Rose S. Santiagudo

Taiwanese group brings tech innovations, seeks closer ties with Mindanao

By Maya M. Padillo
Correspondent

DAVAO CITY — The Taiwan External Trade Development Council (TAITRA) wants to forge closer ties with Davao City and the rest of Mindanao through technological innovations in agriculture, among other sectors.

“In the past, we focused on Luzon island and we have direct flights via Cebu in Visayas, so Visayas has more exposure to Taiwan. Now we will actually work in Mindanao… This year, TAITRA chose Davao to be the place of holding the event as they have noticed the potential of Davao,” Ambassador Michael Peiyung Hsu of the Taipei Economic and Cultural Office in the Philippines, said in an interview during last Friday’s opening of the Taiwan Expo 2019.

Around 100 exhibitors from Taiwan showcased their products, services, and techonology in agriculture, design, and medical care, as well as tourism.

TAITRA Chairman James C.F Huang said they see agriculture and fisheries as having the biggest potential for immediate collaborations.

Mr. Huang said Taiwan has expertise in agriculture technology that can enhance efficiency, both in crop and fish farming.

“The future of fishery is technology. Taiwanese companies have their latest technologies to help you upgrade and transform your fishery industry,” he said.

Mr. Hsu also said representatives from the Department of Agriculture’s Davao regional office will be going to Taiwan soon to learn about precision farming.

“We will show you our latest innovations. We believe Taiwan’s technology can fuel the Philippines’ growth and help your economy to thrive even higher,” Mr. Huang said.

Companies in healthcare services and information and technology were also among the exhibitors.

Among them were Geosat Aerospace and Technology Inc., which specializes in commercial drone systems for building smart cities, and consumer electronics manufacturer Cal-Comp Technology (Philippines).

“We want to transform Davao as smart city and we can offer our expertise… Here in this great city of Davao, we see new beginnings, new hopes, and new dreams,” Mr. Hsu said.

The TAITRA official also said that they are optimistic that bringing the Taiwan Expo to Davao would mark the start of more business-to-business partnerships as well as discussions for direct flights.

“Soon this connectivity will be established, and all that is needed is we have to understand each other and know each other better,” he said.

Government’s free Wi-Fi service installed in 8 earthquake-hit areas

EIGHT AREAS in the Mindanao towns affected by last month’s triple earthquakes are now covered by the government’s Free Wi-Fi for All program, the Department of Information and Communications Technology (DICT) reported on Sunday. The latest to get the internet connection was the municipal gym in Magsaysay, Davao del Sur, which serves as the command post for the relief operations. The seven other Wi-Fi hotspots are in Cotabato, the hardest hit province with the earthquakes’ epicenters in its town of Tulunan. These are at the following: municipal halls of Tulunan, Makilala, M’lang, and Kidapawan City; Cotabato’s Amas provincial capitol; JCX Complex in Kidapawan City, where the Mindanao Development Authority set up a command center; and the Kidapawan office of the Department of Social Welfare and Development (DSWD). “With the recent earthquake that wreaked havoc in the southern central part of Mindanao, continuous efforts are being made by the DICT’s Free Wi-Fi for All Program in order to provide for information and connectivity needs of people in affected areas,” the department said. Over 257,000 people have been affected by the earthquakes last Oct. 16, 29, and 31, with magnitudes ranging from 6.3-6.6. Of the total, more than 56,500 are in 75 evacuation centers, as of the Nov. 10 update from the national disaster management council. There are 31 confirmed fatalities from the three earthquakes, with two still recorded as missing from a tremor-triggered landslide in Davao del Sur.

Mining industry seen growing in 2020 on Indonesia export ban

By Vincent Mariel P. Galang
Reporter

THE Mines and Geosciences Bureau (MGB) said it is projecting the mining industry to grow next year, factoring in the priority mining projects in the pipeline, as well as increased prices for nickel ore due to the export ban in place in Indonesia, the top producer.

“Personally, positive ang outlook ko (my outlook is positive). Una (First), we have signs, like yung ating mga (that our) priority projects that are going to proceed to developmental and commercial extraction,” MGB Director Wilfredo G. Moncano said in news conference.

He cited projects like the Silangan Copper-Gold Project of Philex Mining Corp. in Surigao del Norte, and the Balabag Gold-Silver project of TVI Resources Development (Phils.), Inc. (TVIRD) in Zamboanga del Sur.

In a Sept. 26 letter, the Department of Environment and Natural Resources (DENR) through the MGB approved Philex Mining’s underground sub-level cave mining method for the Silangan mine. This project could be the company’s biggest source of revenue once its 61-year-old Padcal Mine in Tuba, Benguet closes in 2022.

Philex is also in the process of looking for possible investors for the Silangan project to raise 40% of the $750-million initial investment. It has also appointed JPMorgan to advise on possible equity investments and Mizuho Financial Group to raise project financing.

TVIRD, the Philippine affiliate of Canadian miner TVI Pacific, Inc., is in the pre-operational phase at Balabag after its permit was cancelled by former Environment Secretary Regina Paz L. Lopez, who found the project to be near a watershed.

The Chamber of Mines of the Philippines has estimated that the project could attract $20 billion to $30 billion worth of investment.

The Philippine Mining Law of 1995 prohibits operations in critically protected areas, like proclaimed watersheds and forest reserves, but is silent on functional watersheds.

Mr. Moncano said that TVIRD has proceeded to development and commercial extraction since its operation is not covered by the ban on open-pit mining and Executive Order 79, which prohibits granting permits to new mining projects.

Indonesia has also imposed a nickel-ore export ban starting next year, which the Philippines could take advantage of the second-largest producer.

Ayaw na nilang mag-export ng kanilang nickel (They do not want export their nickel) to China and Japan, so that would be a good reason para mag-increase yung production ng ating (to increase production of our) nickel,” he said.

Indonesia is hoping to develop a smelting industry as an alternative to exporting its ore, hereby capturing more value-added activity. It was the top nickel-producer in 2018 with 560,000 tons, followed by the Philippines with 340,000 tons. Their top export market is China.

He said that the ban may also result in higher prices of nickel, which could make more mines in the Philippines viable.

Philippine Nickel Industry Association (PNIA) President Dante R. Bravo said, “It’s going to boost the local production of nickel and it’s going to improve the prices even for lower grades.”

“Marginal producers… will have more market for lower grades. We might be able to sell that next year and will be able to optimize the ore utilization,” he said, adding that with more stable prices next year, the Philippines could also attract more investors for value-added processing of nickel.

Workers seek safeguard duty on auto imports, citing impact on jobs

By Jenina P. Ibañez

THE Philippine Metalworkers Alliance (PMA) has submitted an application to investigate possible safeguard measures on imported automobiles to the Department of Trade and Industry, the first such application from a labor group in the Philippines.

Receiving the application was the DTI’s Bureau of Import Services.

PMA includes among its members iron, steel, electronics, and electrical workers, with affiliates in automotive companies.

Trade Undersecretary Ceferino S. Rodolfo said in a briefing Thursday that PMA’s assertion is based on a link between the surge in automobile imports and the decline in employment the domestic automotive industry.

DTI is evaluating PMA’s data alleging a surge in imports of brand new motor vehicles. The PMA said imports rose to more than 207,000 units in 2018 from 153,000 in 2014. These vehicles fall under the category of HS Code 8703, or motor vehicles principally designed for the transport of persons.

More than 80% of these Completely Built Up (CBU) vehicles come from Thailand, Indonesia, and South Korea.

“When they import CBUs, there is no opportunity to locally source some of the parts when you assemble them here,” Mr. Rodolfo said in Filipino.

He said that instead of producing vehicles in the Philippines for the domestic market, car companies import vehicles produced in countries like Thailand and Indonesia because the Philippines places no tariffs on automobiles from those countries.

The BIS is evaluating the corresponding data on the decline in parts production.

To apply for safeguard measures, the PMA has to prove a surge in imports, the injury or threat of injury to the domestic sector, and a causal link between the surge and the injury.

Mr. Rodolfo said that PMA has submitted data on the increase of imports and data on a decrease in full-time personnel in parts makers and automotive companies.

A representative from PMA said workers in the automotive industry have lost jobs due to downsizing, saying that Mitsubishi Motors Philippines Corp. declared more than 400 positions redundant last year and Isuzu Philippines Corp. temporarily laid off almost 100 employees earlier this year.

PMA Secretary-General Rey Rasing said in a phone interview that workers fear continued loss of jobs.

“That’s the reason why we wrote to DTI — so that there will be balance in the issue of importation and the protection of jobs. As a union, we want permanent jobs if automotive production is done here,” he said in Filipino.

He said that automotive imports only bring temporary precarious work, including commission-reliant sales work in dealerships.

Mr. Rasing said that excise taxes on automotive vehicles under the Tax Reform for Acceleration and Inclusion law in 2018 countered the impact of fiscal incentive programs designed to encourage investment and jump-start the industry.

The automotive industry has pointed to excise taxes for the sales slowdown last year.

With this application for safeguard measures, PMA is hoping for an increase in in-country production for domestic and export markets.

Mr. Rasing said any incentive program for the industry should incorporate worker protections

DTI is evaluating PMA’s application.

“We have to convene a technical working group on trade remedies to officially look at the application for safeguard measures,” Mr. Rodolfo said.

The technical working group, after three months, will submit recommendations for the Trade Secretary to consider.

BusinessWorld asked the Chamber of Automotive Manufacturers of the Philippines and the Association of Vehicle Importers and Distributors, Inc. for comment, but has not received a responses at deadline time.

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