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SSS loan releases increase

THE Social Security System (SSS) saw a pickup in loan releases for retiree pensioners following the relaxed rules approved by the Social Security Commission.

In a statement sent to reporters on Tuesday, the state pension fund said it approved P150.34 million in loans under its Pension Loan Program (PLP) in March, up 53.8% from P97.748 million in loans disbursed to 4,081 retirees in February.

Last month, SSS allowed more retirees to avail of the PLP by relaxing minimum pension requirements.

The new rules allow retiree pensioners with regular and posted monthly pension of at least one month to avail of the lending facility, from the previous requirement of having at least six months of regular pension.

The new guidelines for PLP applications also allow the use of other government-issued identification cards such as Driver’s License, National Bureau of Investigation Clearance, Passport and Voter’s ID among others.

As of end-March, SSS pension loan releases reached P788.664 million to more than 32,872 retiree pensioners.

SSS Bacolod branch approved the most number of applications at 2,240, while the Diliman branch released the highest amount of loans worth P48.08 million.

The SSS launched the loan program on Sept. 3 to respond to growing demand from senior citizens for cheap loans — particularly for emergency medical expenses — and steer them away from loan sharks and other informal lenders. — KANV

Tokhang and talkbacks

By Maria Jovita Zarate

Theater Review
Tao Po!
Written by Maynard Manansala
Directed by Ed Lacson
Presented by Let’s Organize for Democracy and Integrity (LODI)
April 16
PETA Theater Center

TWO EVENTS transpired on April 16 at the PETA Theater Center in Quezon City. The first was the performance of Mae Paner (a.k.a. Juana Change) of a four-part monodrama written by Maynard Manansala and directed by Ed Lacson. The second was the talkback — a forum that followed after the curtain call where the play’s lone actor, the playwright, informants, and sources of inspiration went up the stage to answer queries from the audience.

FOUR VIGNETTES, ONE ACTOR
The phrase “tao po,” as anthropologist Michael L. Tan clarified during the talkback, was an expression that arose during the Spanish times, when a visitor knocked on someone’s door and remarked “tao po” to affirm that he or she is a tao (person), not the aswang or maligno (monsters in Philippine folklore) who occassionally roams the pueblo. “Tao po” is both an assurance that a conversation can be pursued, or a mutually beneficial transaction can happen once a person has been allowed entrance into the dwelling.

In Mr. Manansala’s play on the extrajudicial killings, generally called tokhang, the popular greeting at the doorstep is subverted to create a host of meanings, both good and evil, betrayal and redemption. The title could extend to mean “tao po kami, hindi baboy na kinakatay na lamang…” (we are people, not pigs that are just slaughtered) or “tao po” could be the treacherous words of masked men who knock then stomp on a shanty door to send a volley of gunfire. “Tao po, tao po kami” (We are people) is also that anguished plea from the poor to reiterate their humanity.

Activist and actress Mae Paner takes on four characters, shifting gender, class, and social positions in every role. The first vignette tackled a photojournalist talking to a group of students about the craft of taking pictures in a time of tokhang, where the camera can be an instrument of truth and an accessory to untruth. In the next vignette, Ms. Paner is Nanay Rosing, a zumba instructor stalked by the ghosts of husband and son who were dragged out of their home by the police and shot repeatedly.

In the third vignette, the actress takes on the role of a man, a Davao City policeman who moonlights as a hired killer of drug users and pushers. The last monologue was about a young girl who roams around a public cemetery’s tokhang wall, that unusually tall pile of freshly cemented niches where casualities of Duterte’s drug war are shoved and then quickly covered with a slab of concrete.

The best of the four monologues is arguably the photojournalist’s — taut and lean, with a narrative arc that moved up and down very subtly as he argued his case against the drug war and the tabloid industry with restraint and quiet dignity. Nanay Rosing’s story contrasted the ludic pleasures of dancing to workout music and the incarcerating grip of the memory of husband and son as they were pulled by the ankles and shot. In Duterte’s drug war, no one is ever whole again, trauma leaves wounds that never mend, and yet each of these four characters are all in the process of transforming. The killer’s conscience is not unscathed: he knows the gun is trained on small time users, runners, and pushers, but as a member of the police force he is also summoned to protect the big fish. The orphan’s hopes are like the flickering lights of the candles she offers at those makeshift tombs.

THEATER TALKBACK
Not everyone stays for the talkback sessions. Some find themselves vexed at the patronizing manner in which talkbacks are moderated. Talkbacks can be redundant or can oversimplify the viewing experience.

This talkback though had different tack, largely because of the underhanded style of actor and cultural activist, Joel Saracho, who was tasked to moderate.

From the audience the participants ranged from a law student from the De La Salle University who implored “Please, please, tell us how we can help” to a PUP student who spoke from the theater’s balcony and with a dispassionate inflection: “Nakaka-relate ako kasi tatlong kamag-anak ko na ang natokhang” (I can relate because three of my relatives were killed extrajudiciously) and you knew his stolid disposition was a way of hiding his rage. Screenwriter Bibeth Orteza reiterated the play’s potential to speak to many publics, and goaded the creative team to translate the play into Ilonggo, Waray, Ilokano, and all the major languages of the country. Sunita Mukhi of the College of St. Benilde’s was visibly moved and spoke with force and conviction “Look, everyone, this is the redemptive capacity of the arts.”

But the most powerful voices were the sources and inspiration of the stories featured in this monodrama. Ms. Paner introduced them as Nanay Rosing and the young girl as Lovely. You would think some questions can be very naïve but the responses generate a world of meanings.

A member of the audience took to the microphone and asked “How do feel, Nanay, when you see your story performed?” Nanay Rosing’s quivering voice belied the strength she has forged deep inside and says “Masaya ako nandito kayong lahat, masaya ako hindi pala ako nag-iisa, masaya ako na nakilala ko sila Mae…” (I am happy that you are all here, I am happy to know that I am not alone, I am happy to have met Mae and company) And then Ms. Paner turned to Lovely, the inspiration for the vignette built around the tokhang cemetery wall. She tells the audience that the young girl tries her best to attend most performances of Tao Po! even if she has to borrow money for transportation because it helps her build a sense of connection with people and organizations who care about the plight of children orphaned by the drug war.

Seated at the far end, slightly slouched and head bowed down, photojournalist Raffy Lerma carried with him a kind of diffidence so when someone from the audience stood up and asked “Can we hear from Raffy Lerma?” one would think he would not oblige, and please, could we leave him to his silence because, fair enough, his pictures have spoken.

But no, because Mr. Lerma had a lot to say and, yes, the first vignette is his story, and his angers and frustration he did not hide when he talked about the system that underpins photojournalism in the Philippines. Mr. Lerma admitted to being numbed by the sight of dead bodies, as much as five in a night crawl, but he had to call his own attention so he would not turn insensitive to the idea that he makes his living from the misery of others. For Mr. Lerma, the answers went beyond the photograph and the camera, as he revealed: “Humanap ako ng koneksyon. Nandoon sa pamilya ng mga namatayan, binisita ko sila, sa lamay, pagkatapos ng lamay. Pag pumupunta nga ako sa kanila at nakikilala nila ako, at binabati na ‘Kuya Raffy,’ natutuwa ako…” (I search for a connection. With the family of the dead, I visited them at the wake, after the wake. When I came to them and they learned who I was, their greeting me “elder brother Raffy, I am glad…”)

Both events — the performance and the talkback — carried equal weight in this theater of trauma and testimony. Each buoyed the other in the ferocious currents of Duterte’s drug war. This is a rare moment in the theater scene — when the talkback is more than an appendage to the performance. In the heat of the discussion, the talkbalk became muscle and sinew to the bone of the performance. It transformed the individual experience of viewing to a community conversation for constructing and sharing meaning and making these stories seared into our memory. After all, theater has always been about community.

As the talkback wound down, it felt like the theater had transformed the audience to become its own society.

Tao Po! continues to go on a national tour. On May 8, 4 p.m., it will be staged in La Salle Lipa Centrum, Lipa City, Batangas. On May 10, it will have two performances, at 10 a.m. and 3 p.m., at the University of the Cordilleras in Baguio City. Parties who are interested to sponsor the play may contact Mae Paner through maepaner@gmail.com.

The author writes about the performing arts scene in the country today. She is a member of the jury of Gawad Buhay, the country’s first industry awards body for the performing arts and teaches at the University of the Philippines Open University.

Super consortium’s amended NAIA proposal under review

THE Department of Transportation (DoTr) said it is now reviewing the new draft agreement submitted by the super consortium seeking to rehabilitate the Ninoy Aquino International Airport (NAIA) Monday.

Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. said that after the assessment of the DoTr, the agreement may be turned over to the National Economic and Development Authority (NEDA) for further evaluation.

“We’ll review compliance with (existing) agreements and if ok, endorse to NEDA,” he said in a text message Tuesday, referring to the NAIA consortium’s submitted draft agreement late Monday.

Mr. Reinoso said the DoTr and the consortium agreed on provisions of the draft agreement last Friday. The government earlier set an April 30 deadline for the deal.

The draft agreement includes amended provisions “pertaining to acts of LGU (local government units), judiciary & legislative,” Mr. Reinoso said.

Once the proposal is approved by the NEDA Investment Coordination Committee and the NEDA Board, a Swiss challenge would be conducted.

Under the Swiss challenge, other companies will be invited to submit competing proposals, which the consortium will then have the chance to match.

The consortium initially said it wants to start the competitive process by mid-2019 and kick off the NAIA rehabilitation later this year.

In a chance interview Monday, Transportation Secretary Arthur P. Tugade said the DoTr wants the concession agreement for the NAIA rehabilitation to be patterned after the concession deal on the Clark International Airport.

“We are now comparing the template with Clark with their final proposal. If it is in parallel, then it’s a go. Okay na ’yun [That’s okay],” he told reporters.

Mr. Tugade earlier imposed the April 30 deadline, threatening the consortium that he may drop the proposal because he found the negotiations to be taking too long. The negotiations started after the group was given original proponent status in September.

The NAIA consortium is seeking to rehabilitate and expand NAIA over a 15-year period, with a concession price of P102 billion. It said this will increase the capacity of the Manila gateway from the current 30.5 million annual passengers to 47 million in two years and to 65 million in four years.

The consortium is composed of seven of the country’s top conglomerates, namely: Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp. — Denise A. Valdez

How PSEi member stocks performed — April 30, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, April 30, 2019.

 

Unions push for passage of bill banning ‘endo’ before Congress adjourns

LABOR LEADERS renewed their call to legislators and lawmakers to finally pass the Security of Tenure (SoT) Bill before the Congress adjourns late next month.

On Tuesday — the eve of Labor Day — the heads of the biggest unions jointly asked the legislators to pass the law that will ensure the security of tenure of workers nationwide.

The unions included Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro), the Federation of Free Workers (FFW), the Trade Union Congress of the Philippines (TUCP), Partido Manggagawa (PM), and Kilusang Mayo Uno (KMU).

The SoT Bill is currently in the amendment stage at the Senate. It was certified as urgent last year by President Rodrigo R. Duterte.

The bill hopes to give workers a clear pathway to job security by doing away with practices like “endo,” the termination of employment before the sixth month, which denies workers the benefits and protections of permanent employee status.

“We still have an opportunity from May 20 to June 7. Nine days! That’s why we’re asking the senators to issue the amendments because we are running out of time. It has been going on since the 12th Congress. It’s already the 17th Congress… we are really pushing for this passage. Hopefully when (Congress) adjourns on May 20, amendments will already be submitted,” TUCP President Raymond C. Mendoza told reporters in a briefing Tuesday.

Nagkaisa Labor Coalition (NAGKAISA) Chairperson Sonny G. Matula said legislators should raise penalties for employers who are found to be engaged in labor-only contracting, which is prohibited by the Labor Code of the Philippines.

According to Section 288 of the Labor Code, violators “shall be punished with a fine of not less than One Thousand Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00).”

Ang penalty ay napakababa… hanggang ngayon hindi maka-comply ang mga employer sa security of tenure ay dahil napakababa ang penalty niya (The penalty is too low… until now, employers don’t comply because the penalty is low),” Mr. Matula said.

KMU chairperson Elmer C. Labog said: “This is unacceptable. We cannot legitimize labor-only contractors who do nothing but recruit and deploy workers… They connive with principal business owners to deprive workers of security of tenure and other basic labor rights.”

On May 1, 2018, Mr. Duterte signed Executive Order 51 which purported to crack down on illegal forms of contractualization. Mr. Labog said a law must be in place to institutionalize the changes.

“It will go down as a legacy of failure and one of the greatest unfulfilled promises of President Rodrigo Duterte,” the KMU chairperson said. — Gillian M. Cortez

Makabayan bloc asks SC to rule on legality of Meralco deposits

THE Makabayan bloc filed a petition before the Supreme Court (SC), questioning the legality of the bill deposits collected by Manila Electric Co. (Meralco) from its consumers.

In an 36-page petition, Makabayan bloc, led by Senate candidate Neri J. Colmenares, said it asked the SC to stop Meralco from collecting the bill deposit, saying the provision is not allowed under the Electric Power Industry Reform Act (EPIRA) and the Meralco franchise.

The bloc said that under EPIRA, distribution utilities are only entitled to impose distribution wheeling charges and connection fees as approved by the Energy Regulation Commission (ERC). It also said that a distribution utility has the obligation to supply power in the “least-cost manner” to its subscribers subject to collection of retail rates.

“It (bill deposit) is not a charge for any electric service, but rather an amount posted by consumers for future or anticipated electric service that is not paid. By its nature as mere guarantee, it does not form part of retail rate, and as such, is not an allowed exaction under the EPIRA,” it said.

It also asked the court to order ERC to implement the refund of the bill deposits to the consumers and direct the Commission on Audit to conduct audit of all funds collected from bill deposits.

The Magna Carta for Residential Electricity Consumers promulgated by ERC in 2004 provided that consumers are obliged to pay bill deposit which shall be equivalent to the estimated billing for one month when they apply for connection.

Bill deposits are to be refunded within one month after termination of service as long as all bills have been paid, while customers who paid electric bills on or before the due date for three years can demand refunds prior to the termination of service, according to the Magna Carta.

Makabayan said the bill deposits of Meralco amounted to P29 billion, based on the power company’s audited 2018 financial statements.

The Makabayan bloc also said that imposition of bill deposit is inconsistent with promotion of consumer interests under the Magna Carta.

“[T]he ERC’s authorisation of Bill Deposit in the Captive Market does not promote consumer interest; rather it only promotes the interest of DUs (distribution utility) and ensures their profit, to the prejudice of consumers,” it said.

Citing findings of the Office of the Ombudsman, the bloc said the bill deposit collected by Meralco has been “commingled” and used to finance its capital and operating costs.

“The captive consumers are being used as unwitting investors of Meralco but without the corresponding benefits and advantages. This is clearly disadvantageous to the consumers’ interest,” it said.

“Having commingled the Bill Deposit with its general funds and used for other purposes, Meralco endangers the right to refund the Bill Deposit by the consumers,” it added.

It also said that the interest rate to the bill deposit is “unfair and clearly disadvantageous to the consumers’ interest,” noting the Ombudsman findings.

The Ombudsman has said that interest on bill deposits was reduced from 10% to 0.50% in 2011 to 2012 and reached 0.25% in 2014 to 2016. However, it said that the company, despite acknowledging low interest rates in bill deposits “which appear discriminatory” on the part of the consumers, allegedly failed to adopt measures to advance the interests of its consumers by providing reasonable returns on the deposits.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly-owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Vann Marlo M. Villegas

PHL to join Southeast Asian disaster insurance program next month

THE PHILIPPINES will sign a Memorandum of Understanding (MoU) in May to participate in the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), joining five other fellow ASEAN members and Japan.

In a statement, the Department of Finance (DoF) said Tuesday that Japan’s Deputy Prime Minister and Finance Minister Taro Aso told Finance Secretary Carlos G. Dominguez III, “I hope you can consider signing the MoU at the ASEAN+3 meetings to be held on May 1. I raised this issue because six countries — Cambodia, Indonesia, Laos, Myanmar, Singapore and Japan — have already signed to this MoU and this is insurance against natural disasters.”

The six countries signed the MoU in Busan, South Korea in December.

Mr. Dominguez replied that the Philippines will “definitely” sign the MoU in Fiji, adding that the government has signed up for a similar parametric insurance scheme with the World Bank.

According to the World Bank website, SEADRIF will involve a trust and insurance company in Singapore which will be partners with and technically supported by the World Bank. The platform will provide ASEAN countries advice and solutions on how to increase their financial resiliency to climate and disaster risk, as well as support pre-disaster planning and provide post-disaster relief and reconstruction funding.

The first SEADRIF product is a regional catastrophe risk insurance program for Laos and Myanmar.

Earlier, National Treasurer Rosalia V. De Leon said that the government has enough funds to cover the damage caused by the earthquakes that hit the country this month, citing parametric insurance in place with a maximum coverage of P20.49 billion that can provide quick liquidity for national and local governments. The premium for the insurance was P2 billion paid to the Government Service Insurance System (GSIS), which subsequently reinsured with the World Bank and the insurance market.

The provinces covered by insurance are: Albay, Aurora, Batanes, Cagayan, Camarines Norte, Camarines Sur, Catanduanes, Cebu, Davao del Sur, Davao Oriental, the Dinagat Islands, Eastern Samar, llocos Norte, Ilocos Sur, Isabela, Laguna, Leyte, Northern Samar, Pampanga, Quezon, Rizal, Sorsogon, Surigao del Norte, Surigao del Sur and Zambales. — Reicelene Joy N. Ignacio

ADB future programs for PHL to focus on social assistance, flood control

THE ASIAN Development Bank (ADB) said it operations in the Philippines between 2020 and 2022 will focus on social assistance, education and flood control among others.

In a statement Tuesday, the bank said it is preparing its 2020-2022 Philippines Country Operations Business Plan, with initiatives including the Expanded Social Assistance project, the Facilitating Youth School-to-Work program and the Workplace Skills Funding pilot project.

“ADB is also preparing investments in flood control infrastructure in six river basins in Visayas, Mindanao, and Luzon; a Livable Cities project in selected cities and tourism destinations in Mindanao and Palawan; as well as irrigation and agribusiness in Mindanao,” it added.

To take into consideration, the ADB held a forum in Cebu on April 26 with various stakeholders to help guide the bank in its efforts.

“We want to listen to our Filipino stakeholders so that we can properly prioritize and target our assistance to the Philippines,” ADB Country Director for the Philippines Kelly Bird said during the forum.

“We also want to engage more with the private sector in areas such as Cebu, where there are dynamic business and industry sectors.”

ADB President Takehiko Nakao said in a briefing in Manila last week that the bank is increasing its lending to the Philippines this year, pushing the average amount lent to $2.5 billion yearly from $1 billion previously.

He added that the bank wants to prioritize the Angat Water Transmission Improvement Project, citing the need for water supply to support urban and agriculture development.

“This year we expect new lending to the Philippines to be $3 billion including the Malolos Clark Railway project… There are many important projects — one is the Angat Water Transmission Improvement Project,” he said.

The ADB is expecting the economy to grow by 6.4% both this year and in 2020, which if realized would be faster than the 6.2% recorded in 2018. — Karl Angelo N. Vidal

NEDA, UNICEF launch tracker for Sustainable Development Goals

THE NATIONAL Economic and Development Authority (NEDA) said it launched a a website tracking the Philippines’ progress in meeting the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs).

NEDA, in partnership with the United Nation’s Children Fund (UNICEF), launched the SDG website in Pasig City Tuesday, calling the tracker a sign of its commitment to achieve the 17 SDGs.

“The website aims to provide a platform for different stakeholders to contribute to the attainment of these goals. It will provide information on government and non-government initiatives to promote and attain the SDGs,” Socioeconomic Planning Secretary Ernesto M. Pernia said at the ceremony launching the site.

The SDGs, which were adopted by United Nations member states in 2015, identified 17 goals intended to ultimately end poverty and other forms of deprivation. Among its goals are to end poverty and hunger, improve health and well-being, and provide quality education.

Targets and indicators for each SDG were laid out in the platform, which is linked to the latest available data from the Philippine Statistics Authority (PSA).

Ola Almgren, the UN Resident Coordinator for the Philippines, said the government has provided an “informative digital resource in understanding the SDGs.”

“If I am looking at this from the United Nations’ point of view, we see it as the Philippines taking on a leadership role already in the development of the 2030 Agenda as it continues to (play a) key role through implementation also at the international level,” Mr. Almgren said in his speech.

A “call for inputs” for the second Voluntary National Review (VNR) of the Philippines is contained in the “Policy Mainstreaming” tab. The VNR is a periodic assessment of the country’s activities in completing the SDGs by 2030. The first VNR was presented in 2016 while the ongoing VNR will be presented in July at the UN Headquarters in New York.

The newly launched government website can be accessed through http://sdg.neda.gov.ph/.Marissa Mae M. Ramos

CEZA signs property deals with Chinese firms

THE Cagayan Economic Zone Authority (CEZA) said it signed deals with Chinese businesses planning to invest $3.9 billion in projects first unveiled at the Belt and Road Initiative Forum in Beijing.

In a statement Tuesday, CEZA said it signed seven memoranda of understanding (MoU) with and received two letters of intent (LoI) from Chinese companies, mostly seeking to engage in real estate projects.

Among the companies CEZA signed MoUs with was Xiamen-based Fong Zhi Enterprise Corp. which proposed to develop a $2-billion smart city on Fuga Island in Aparri — a beach destination.

A strategic cooperation agreement was also signed by Fong Zhi Enterprise and Isla Fuga Pacific Resorts, Inc., owner of the Fuga Islands.

Fong Zhi Enterprise will also set up an agricultural breeding center and soil improvement project, build medical schools, promote culture and tourism and establish a high-tech industrial park, CEZA added.

The investment promotion agency said other MoUs involve Shanghai Jucheng Group, which is planning a $150-million township and manufacturing plant for lithium batteries; Pai Hao Investment, with a proposed $500 million upgrade and expansion program to accommodate wide-body aircraft at the Lal-lo International Airport; and Shenzhen Dawah Real Estates, which will partner with the Apsaras Group Ltd. to establish a $100-million marina, watersports training center and private villas.

CEZA also noted China Zhejiang Guannan Group’s plan to put up a $500-million “green” textile production hub for global distribution; Golden Millennial Quickpay Inc. and its proposed $100 million fintech hub in a 10-hectare property near the proposed CEZA Global City; and Yatai International Holdings’ planned acquisition of a property to build a $500 million satellite city.

The letters of intent involve the Baoye Construction Group and Tian Gong Construction Group, both interested in developing a resort, a golf course and other leisure and shopping facilities.

CEZA Administrator Raul L. Lambino said the signing event was “highly successful (and) brought new investment and empowered countries, including the Philippines, participating in China’s Silk Road project.”

In 2018, investment pledges at CEZA totaled $8.131 billion, the highest in more than two decades, with projects related to cryptocurrency, blockchain and online gaming driving the growth.

CEZA’s revenue more than tripled to P706.512 million because of the new investments. — Janina C. Lim

A layman’s take on labor contractualization

Still of particular interest in the Labor Day discussions is the issue on the contractualization of labor. More popularly known as “endo” or the 5-5-5 arrangement, this practice started in the mid-70s as a response to alarming unemployment. For the uninitiated, the term “endo” was coined from “end of contract.” On the other hand, 5-5-5 stands for three cycles of five-month contracts, a cunning ploy that makes workers in every contract a month shy from being regularized into the company, given the mandate of the law to make workers who have stayed for six months permanent. Right off the bat, you can understand why this is such a controversial issue.

For workers, they are deprived of benefits and security of tenure. Unlike their regularized counterparts, contractual workers do not have paid leaves and holidays as they are on a “no-work, no pay” basis. When the rest of the labor force is excited about long weekends, contractual workers dread these because no-work days spell no income. In the moments after the April 22 earthquake, contractual personnel had an additional worrying to do — having a reduced income, only to the extent of the number of hours actually worked because they were sent home. I feel for those whose shifts have just started, as their pay for that day may not even cover their transportation fare. On the other hand, there were those who had to trade off not being with their families just so they can earn their daily wage.

I would imagine that their situation gets dimmer by the day when their contract nears expiration. In a country with a pronounced unemployment problem — about 2 million — it is perfectly understandable for workers to experience a high degree of anxiety of whether their contract will be renewed or, if not, whether they can find employment elsewhere. Their apprehension is magnified several times as they have to worry about providing for their family, especially when they have circumstances that are out of the ordinary, such as sickness in the family that require expensive medicines, children with special needs, and the like. It is also in these times when these hapless employees are most vulnerable to the abuses of vicious individuals who prey on them.

For the business sector, they may have no scruples given the simple and logical explanation regarding the seasonality of some labor requirements. Some businesses need more people on certain periods of the year, such as the Christmas season. It is unreasonable to expect and require these companies to keep these extra hands the whole year round.

In reality, contractualization has detrimental effects on their operations too. A company that engages in this practice would have a very high turnover rate of personnel. This, in turn, creates a disruptive operational environment and actually leads to higher costs of training and higher incidence and costs of errors. Moreover, the motivation of contractual employees to perform well is superficial — only to the extent of the possibility that their contracts will be renewed. From the very start, they know that — notwithstanding any superior performance — their chances of becoming regular employees are slim to none.

contracts endo people

But if this practice is not good for either labor or business, then, why does it persist? It may be stating the obvious that contractualization is generally undesirable for the individual, but even that may be relative. Is it truly undesirable when seen from the macro perspective of generated employment? Given finite resources, increasing labor costs for businesses may mean a decrease in jobs, and vice versa — contractualization may offer more employment opportunities compared to its regularization counterpart. As a sector, therefore, labor may get some nominal benefit. The question seems to be which is socially preferable — more people employed who are neither sad nor happy or fewer people employed who are happy?

But I strongly suspect that another big attraction of labor contractualization for business, at least at the managerial and operational levels, is the ease of replacing individuals who do not make the cut, have attitude problems, or are plainly disruptive to the organization. A probationary period of six months may be too short to make a determination of an individual’s fit for the job — both technical and behavioral. From the perspective of business, the regulatory environment has become so overprotective of regular labor that companies are backed into a corner. Companies lament that, more often than not, they are held hostage to the long-winded and tedious process of removing seriously erring employees once they enjoy regular status. Even if the company eventually wins, it may be a Phyrric victory, given the financial and organizational costs. Therefore, for them, the “endo” practice has become their hassle-free ticket out of these stressful conditions. It presents a fast and low-intensity resolution of the problem. Though, unfortunately, not all supervisors use this for the best of reasons. This may also be the enticement to government in having its own version of contractualization, using job orders.

Admittedly, the contractualization practice is being used for purposes other than those originally intended, such as in situations where the spirit of labor laws is thwarted. Be that as it may, it is not as simple as whether to allow the practice or not. Perhaps, helping business and government address their unspoken labor concerns and manage labor costs optimally and responsibly are the keys to resolving the issue of labor contractualization.

Some out-of-the-box thinking may accompany the discussions on the fate of contractualization as a practice. For instance, implementing premium wage rates — say, double — for contractual hires may be used to offset lost benefits. For some, extending the probationary period to one year versus the current six months may justify removing contractualization given that there is sufficient time to determine proper match of the employee with the job. Also, companies, by virtue of their infancy, for instance, may be allowed a limited period when they can engage contractual workers — who then shall enjoy first priority in regular employment when the period given by law has expired. Given the changing economic landscape, some individuals may actually prefer a temporary and part-time arrangement. Thus, contractualization, with sufficient safeguards accorded by law, may even be developed as a separate and legitimate mode of employment.

And, while these may sound politically incorrect for some or controversial for others, the point is that countless other options exist that have the potential of making us move forward, even incrementally. The more we set ultimatums and insist on finding a one-size-fits-all solution, the more difficult and protracted the resolution will be.

 

Edwin Santiago is Executive Director of Stratbase ADR Institute.

IPR and MORE investments

A report in BusinessWorld reiterated the value of IPR protection: “PHL remains out of US IPR watch list for 6th year’ (April 27, 2019)

“FOR the sixth straight year, the Philippines was not included in the US government’s watch list of countries with weak protection of intellectual property rights (IPR)… after being included from 1994 through 2013,” the report said in part.

The government’s Intellectual Property Office (IPOPHL) also announced in its website: “Finally, Philippines No Longer in the Notorious Markets List of the USTR” (April 25, 2019) — of which I quote in part, “After being on the list for the last six (6) years, the Philippines is completely gone in the list of Notorious Markets of the Office of the United States Trade Representatives (USTR) as reported in the Out-of-Cycle Review of Notorious Markets dated December 13, 2012.”

Good news then. Last week, April 26, was World Intellectual Property Day as declared by WIPO with the theme, “Reach for Gold: IP and Sports.”

Also that day, 77 independent think tanks and institutes (including Minimal Government Thinkers) from 39 countries signed the “Open Letter to WIPO Director General Francis Gurry,” initiated by the Property Rights Alliance (PRA, USA). The letter said:

“When IPRs are protected, markets are formed that encourage innovators to compete to make the next breakthrough product consumers demand — be it training equipment, a smart sensor, or a new media platform. In this way, athletes and innovative markets are sure to always go faster, stronger, higher! Neither innovation nor sport can exist without enforceable property rights.”

More IPR protection indeed facilitates and encourages more investments. Table below is constructed from three different sources: (1) International Property Rights Index (IPRI) rank: PRA’s IPRI 2018 Report, (2) Foreign direct investment (FDI) inward stock 2017: UNCTAD, World Investment Report 2018, and (3) Population 2017: IMF, World Economic Outlook 2019. The last column is derived by this paper.

IPR

Global ranking in IPR protection and innovation in East Asia

More property rights protection, more investments. Japan is the exception here because Japan is the main source, not destination, of FDIs in many countries abroad. On May 15, the Geneva Network (UK) will hold a one-day seminar and meeting of Asian free market think tanks, institutes and academics doing work on IPR protection and trade to be held in Kuala Lumpur.

And on May 24 or 25, PRA (US) will hold a side event on IPR and investment promotion in Sydney during the 17th meeting of the World Taxpayers Association (WTA) conference and the 7th Friedman conference by the Australia Taxpayers Alliance.

From the IPRI report, the per-capita income in countries with robust property rights protection is 20 times greater than those in countries with weak protections. The market-oriented reforms for efficiency (MORE) are to further strengthen private property protection, physical or intellectual — by legislation or executive action.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

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