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How has agriculture performed amid weather shocks?

How has agriculture performed amid weather shocks?

Duterte issues EO authorizing funding for gov’t salary hikes

PRESIDENT Rodrigo R. Duterte has signed an executive order authorizing funding for the fourth tranche of the salary hike for government workers against any available appropriations from the reenacted 2018 budget, as the contentious process of enacting the 2019 budget threatened to outlive the 17th Congress.
Malacañan Palace released to reporters on Wednesday a copy of Executive Order No. 76, which amends EO No. 201 (Series of 2016). The new EO carries the title “Modifying the salary schedule for civilian government personnel and authorizing the grant of additional benefits for both civilian and military and uniformed personnel.”
Mr. Duterte signed EO No. 76 on March 15, citing the need to implement the fourth tranche salary schedule for civilian government personnel by Jan. 1 of 2019 as indicated in EO 201.
Congress has yet to transmit the 2019 budget to the Palace for signing after it was approved by the bicameral conference. Representatives to the committee from the House have claimed that lump-sum items in the approved document need further “itemization,” creating a standoff with the Senate, which insists that the version approved by the bicameral committee be preserved. The House retrieved the budget sent to the Senate on Wednesday pending further negotiations.
The delay in transmitting the budget for the President’s signature has raised fears that the 2019 budget could be passed as late as August, or after the adjournment of the 17th Congress for the midterm elections in May.
The National Economic and Development Authority (NEDA) has warned that a budget signing in August could dampen economic growth to around the 5% range because of the unavailability of funding for new projects.
EO 76 notes that Congress has failed to pass the 2019 budget. Hence, the GAA for the preceding year “shall be deemed reenacted and shall remain in force and in effect until the general appropriations bill is passed.”
Section 15 (a) of EO 201 is “hereby amended” under the new EO. The amendment reads: “Pending the enactment of the Fiscal Year (FY) 2019 GAA, the funding requirements for the compensation adjustment for FY 2019 shall be charged against any available appropriations under the FY 2018 GAA, as reenacted, to be determined by the Department of Budget and Management (DBM), subject to existing budgeting, accounting and auditing rules and regulations.”
The order takes effect immediately upon its publication in a newspaper of general circulation. — Arjay L. Balinbin

El Niño crop damage tops P1.3 billion

THE Department of Agriculture (DA) said it now estimates El Niño-related crop damage at P1.33 billion, with an estimated volume of 78,348 metric tons (MT) worth of farm output lost to the weather phenomenon, which has caused severe drought across the country.
Some 70,353 hectares of agricultural land was affected, with 84,932 farmers reporting losses, according to DA data as of March 19.
Affected regions are the Cordillera Administrative Region (CAR), Regions I, II, III, IV-A, IV-B, and V, which spans the length of Luzon from the Ilocos provinces to Bicol as well as the so-called MIMAROPA provinces; Regions VI and VIII or the Western and Eastern Visayas, respectively; and all across Mindanao in Regions IX, X, XI, XII and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
Rice production losses were estimated at P814.4 million, with lost volume at 41,003 MT, and affecting 69,889 farmers over 54,924 hectares planted to the staple.
Corn production losses, meanwhile, amounted to P512.3 million, with lost volume of 37,344 MT, and affecting 15,043 farmers over 15,428 hectares.
“A total amount of P18.3 million has been released for cloud seeding operations. The Bureau of Soils and Water Management (BSWM) and Philippine Air Force (PAF) in Regions II, MIMAROPA, VII, and XII have conducted joint Area Assessment for pre-cloud seeding operations. Cloud seeding operations for Regions II, XI and XII will start on March 19 and 25, respectively using the PAF Nomad aircraft,” the DA said in an advisory.
The Philippine Statistics Authority (PSA) estimates first quarter production of palay, or unmilled rice, at 4.62 million metric tons (MT) in the first quarter, down 0.1% after actual year-earlier output came in at 4.62 million MT.
Its estimate for corn production in the first quarter is 2.54 million MT, which would be up 2.6% from the year-earlier output of 2.48 million MT. — Reicelene Joy N. Ignacio

ERC dismisses 8-year-old petition on system loss rules for power system

THE Energy Regulatory Commission (ERC) has dismissed for being moot and academic a joint petition seeking incentives for companies that manage to bring systems losses below a set level, which was filed by power operators and distribution utilities.
In an order promulgated on March 14, the ERC said the petition for the regulator to initiate rule-making by approving proposed guidelines for computing system loss had already been addressed by the rules approved by the commission in 2017 and subsequently clarified through a resolution in 2018.
“Thus, the instant Joint Petition should be declared moot and academic considering that the Commission had already resolved the issues raised by the Joint Petitioners,” the ERC said.
The petitioners are the Private Electric Power Operators Association, Inc, the Philippine Rural Electric Cooperative Association, Inc., and Manila Electric Co. Their petition dates to Jan. 27, 2011.
The proposed guidelines contain the details of the incentive scheme, which calls for the system loss rate to be calculated and billed each calendar month using the prevailing system loss cap.
In case the actual annual system loss level of a distribution utility falls below the prevailing cap set by the ERC, an incentive scheme to further lower the system loss will be implemented for the benefit of consumers.
A system loss savings equivalent to the customer share in the incentives will be reflected as a separate line item in the electricity bill upon the implementation of the incentive scheme.
The rate for the savings is computed by taking the difference between the computed system loss charge at the cap and the computed system loss charge at the actual 12-month moving average system loss. The resulting difference is then multiplied by the customer share in the incentive scheme to arrive at the savings rate per kilowatt-hour.
The ERC said since the filing of the petition in 2011, it had adopted rules and resolutions that are directly related to and responsive to the petitioners’ proposal.
These include rules issued in 2017 for setting the distribution system loss cap and establishing performance incentive scheme for distribution efficiency.
In 2018, the ERC issued a resolution clarifying the system loss calculation and providing the effectivity of the rules for setting the distribution system loss cap.
In September 2016, the commission conducted a study on system loss for purposes of establishing the new caps based on the parameters prescribed under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA). The proposal of the petitioners were also considered in the study.
The ERC then came up with proposed rules on distribution system loss based on the EPIRA parameters and the proposals submitted by the petitioners. The proposed rules underwent public consultations and legislative hearings in which various stakeholders had participation in the discussion.
On Dec. 5, 2017, the ERC approved the rules, but ahead of their publication, some electric cooperatives requested clarification.
On April 23, 2018, the commission approved the system loss resolution, which also clarified the questions raised by the electric cooperatives relating to the previously approved rules. — Victor V. Saulon

ASEAN releases 7-year plan targeting greater fuel efficiency for LDVs

THE Association of Southeast Asian Nations (ASEAN) Secretariat has released a seven-year roadmap that sets stretch targets for reducing the fuel consumption of light duty vehicles (LDVs) across the region.
The document, known as ASEAN Fuel Economy Roadmap for Transport Sector 2018 — 2025: With Focus on Light-Duty Vehicles, identifies as a key objective reducing LDVs fuel use from the 2015 to 2025 model years to around 5.30 liters of fuel equivalent per 100 kilometers (LGe/100km).
The “aspirational” target represents a 26% reduction from the 7.20 LGe/100km posted for 2015.
The 2015 baseline represents fuel consumption rates in the core ASEAN Five countries of the Philippines, Indonesia, Malaysia, Singapore and Thailand. The five countries were the only ones that had adequate data for the period and account for 95% of the region’s LDVs sales.
The ASEAN sales-weighted average of new LDVs fuel consumption is higher than the world average of about 7.00 LGe/100km, attributed to a “technology gap” which causes ASEAN cars to consume more fuel despite being less powerful, deploying smaller engines and being lighter than average.
“This technology gap results from the absence of stringent fuel economy policies,” the Secretariat added.
During the period, Philippine LDVs fuel consumption rates were about 7.70 LGe/100km, followed by Malaysia with 6.6 LGe/100 km.
The new LDV fuel efficiency target for ASEAN “provides long-term planning direction for manufacturers and enables governments to monitor progress against the aspirational target.”
“It serves to benchmark potential reductions in energy demand, GHG (greenhouse gas) emissions, and fuel costs, and is thus an important component of regional economic and climate policy-making,” it added.
The ASEAN Secretariat released two other documents accompanying the roadmap: the ASEAN Regional Strategy on Sustainable Land Transport and the Sustainable Land Transport Indicators on Energy Efficiency and Greenhouse Gas [GHG] Emissions in ASEAN.
The Department of Trade and Industry (DTI) welcomed the targets under the ASEAN fuel economy roadmap, adding government will seek to amend transport policy to achieve the targets.
“While there is general coherence and alignment of the targets in the Roadmap with our current policy direction, we will work with our colleagues… to see if there are adjustments or if there are additional measures we need to put in place,” Trade Secretary Ramon M. Lopez said in a mobile message on Wednesday. — Janina C. Lim

Locsin, economic delegation begin key meetings in Beijing

FOREIGN Affairs Secretary Teodoro L. Locsin, Jr. has arrived in Beijing for a four-day visit to China, accompanying a Philippine economic delegation seeking to firm up financing for infrastructure projects.
In a statement issued by the Department of Foreign Affairs (DFA) on Wednesday, Mr. Locsin, along with economic managers and Executive Secretary Salvador C. Medialdea, met with Chinese Vice-President Wang Qishan. Mr. Locsin also meet with his counterpart, Foreign Minister Wang Yi.
The DFA said economic managers were led by Finance Secretary Carlos G. Dominguez III, who is also in China for the Philippine Economic Briefing. Mr. Dominguez briefed Mr. Wang on the progress of infrastructure projects funded by China.
According to a separate statement by the Department of Finance (DoF), Mr. Dominguez said progress has been made on China-funded infrastructure projects under the “Build, Build, Build” program
“We have been meeting with the Ministry of Commerce of China (MofCom) for the past two years, and we have made a lot of progress with our actual official development assistance relations with China,” the Finance Secretary was quoted as saying during the meeting.
“We want to assure you that the funds provided by the Chinese people through the Chinese government are going to be used to the benefit of the Filipino people,” he added.
China is funding, through grant, the Binondo-Intramuros and Estrella-Pantaleon Bridges to address traffic in Metro Manila. It also provided a concessional loan for the $62.09-million Chico River Pump Irrigation Project and $211.21-million New Centennial Water Source-Kaliwa Dam.
The Finance Secretary also said the Davao-Samal Bridge Project in Mindanao and the Panay-Guimaras-Negros Inter-island Bridge in Western Visayas are in the pipeline for possible Chinese funding.
Aside from Mr. Dominguez, the DoF said Public Works Secretary Mark A. Villar, Transportation Secretary Arthur P. Tugade, Interior Local Government Secretary Eduardo M. Año, Budget Department Officer-in-Charge Janet B. Abuel, National Economic and Development Authority (NEDA) Undersecretary Jonathan L. Uy, and Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Vivencio B. Dizon were present at the courtesy call paid to the Chinese Vice President.
The DFA said Mr. Wang “reaffirmed China’s commitment to further strengthening bilateral relations with the Philippines through cooperation for common development on the basis of mutual understanding and trust.”
Mr. Locsin relayed to the Chinese Vice-President his “admiration for the hard work and talent of the Chinese people, which are the foundations of China’s phenomenal economic development.”
Mr. Locsin, in his meeting with Mr. Wang, was quoted as saying in the statement: “I speak for my country which wants to see much to hope for, and nothing to fear from the rise of a new power. And along with it a new world where the ambition of one to rise higher and get richer is best advanced by helping others to rise and prosper in tandem with her.”
“To put it in concrete terms, without the new China, there will be no prospect whatsoever for the developing world to grow into emerging economies. We would still be, as throughout the second half of the last century we were, at the mercy of Western markets which, on a whim can turn us away — as they did throughout the post- and neo-colonial period,” he added.
He said two officials sat together to discuss the accomplishments of the two countries, the differences that have yet to be resolved, and “the need to set them aside” for the future direction of a “mutually beneficially relationship.”
“We spoke of regional issues and international commitments; and the parts our countries play in the world by choice or necessity. Our two countries’ mutual respect is best shown by our shared refusal to take part in outside attempts to take advantage of each one’s internal problems; these are best and rightly left to national solutions,” he said. — Camille A. Aguinaldo

Government extends ban on pork imports to some types of hog feed

THE Department of Agriculture (DA) has expanded its ban on pork imports to hog feed containing pork products from countries infected by African Swine Fever (ASF), as the government stepped up measures to cordon off the country’s swine industry from the disease.
In Memorandum Order No. 06, series of 2019, Secretary Emmanuel F. Piñol said that he is banning imports of processed porcine or pork-based meal for use in animal feeds, as well as the immediate suspension on the issue of sanitary/phytosanitary import clearances (SPS-IC) for these commodities. The order also calls for the seizure of all such shipments by all DA Veterinary Quarantine Officers or Inspectors at all ports.
The DA said there is evidence that contaminated feed can possibly transmit the ASF virus to pigs consuming the feed.
“The order shall take effect immediately and shall remain enforced until revoked in writing,” it said.
Countries barred from exporting pork and pork products to the Philippines are: Vietnam, Japan, China, Hungary, Belgium, Latvia, Poland, Romania, Russia, Ukraine, Bulgaria, the Czech Republic, Moldova, South Africa and Zambia.
On Sunday, Mr. Piñol said that he has met with hog raisers to discuss more stringent measures to prevent the entry of ASF.
“The DA-BAI (Bureau of Animal Industry) has issued an invitation to companies offering services of sniffer dogs to immediately coordinate with the Office of the Secretary for an emergency engagement of their services,” Mr. Piñol said.
In the Senate, Majority Leader Juan Miguel F. Zubiri said he wants to expand the ban on the entry of pork products to countries neighboring those with confirmed ASF cases.
Mr. Zubiri made the statement after a hearing on Wednesday of the Senate committee on agriculture into the risks and vulnerability of the Philippines to ASF. Mr. Zubiri was designated by the committee chair Senator Cynthia A. Villar to preside over the hearing.
“For example, in Europe, we already have a ban on Belgium. But a lot of our imports come from Germany and Spain… That’s near Belgium. How will we monitor if (pork) products (with ASF) were able to enter these countries?” he told reporters.
During the hearing, Agriculture Undersecretary for policy and planning Segredo R. Serrano said, “We can only ban products from countries that have ASF. In fact, Secretary Piñol has asked me if he can ban (all pork imports) altogether. I said, ‘If you have prima facie evidence and cite precautionary grounds. But you cannot maintain that ban for a long time.’”
He added: “If you ban countries that have clean ASF records, like the United States, Canada, the whole of North and South America… we will have problems because we have no legal reason… if they don’t comply with our requirements and standards (or) cannot pass our inspections, of course we have a reason to ban them in a country-to-country basis.”
Philippine Council for Agriculture and Fisheries (PCAF) chairperson Rufina Salas called for a temporary total ban on imports of pork and pork products even from countries that are not affected by ASF.
ASF is non-treatable and contagious with a mortality rate of 100%, killing swine in as little as two days. — Reicelene Joy N. Ignacio

Data privacy officers warned about navigating ‘cultural factors’

DATA PRIVACY officers (DPOs) in the Philippines must contend with cultural factors that result in different requirements for data protection compared with other countries, an industry official said in a conference.
Emmanuel C. Lallana, a former consultant with the National Privacy Commission (NPC) and at the United Nations, said during the 1*DATA Privacy and Security Solutions Day in Makati City that a key competency of DPOs is understanding how data privacy laws apply in the Philippine context.
He said Filipinos may define privacy differently from other nationalities, and may not consider private data to be off-limits to some types of outside parties like relatives.
“Everybody has to know the law, and everybody has to follow the law. What we’re saying is to gain a deeper understanding of the challenges that we face, we have to take into consideration our own version of privacy,” he said on the sidelines of the forum.
He said Filipino views on privacy can be arbitrary, with some information that must be closely held in other countries viewed as shareable within a defined circle of people.
“It’s not that we don’t have (an idea of privacy), it’s just that the boundaries may be a bit different from the boundaries that are set in the West,” Mr. Lallana said.
He said this does not mean that DPOs in the Philippines must be more relaxed in upholding data privacy laws.
“We have to comply with the legal requirements, but in terms of the case-to-case things, that’s when the nuance comes… When we are asking people to comply, we have to take into consideration the fact that maybe Filipinos do not see it this way, that’s why it’s not important to them,” Mr. Lallana said.
“It’s more important now for us to tell them, ‘Hey, look, this may not be our notion of privacy but the extent that we live in a society where there’s free flow of information then we have to follow the global standard,’” he added.
The 1*DATA privacy conference organized by National Association of Data Protection Officers of the Philippines (NADPOP) gathered DPOs from various companies and government agencies with the intent of providing a platform to share best practices.
NADPOP President Sam V. Jacoba said the forum intends to “build up the ecosystem” for DPOs, as the profession is still emerging in the Philippines.
“(The NPC said) enforcement is going to come. And we don’t like to see people caught flat-footed or to be negligent. Especially companies who still do not invest in data privacy. We would like to reach out to them and tell them, ‘Look, you should have done this a long time ago. But there’s still time. So you should comply now. And you should invest now in your data protection officers. If you don’t have one, appoint one. And then empower them more,’” he said.
“The threat of breaches will always be there. But at the end of the day, it’s the people that matter. That’s why NADPOP is going to focus on the DPOs… We are at war against the nameless, faceless, many who try to infiltrate our databases. And people should realize that, that we are at war,” Mr. Jacoba added.
Citing NPC data, Mr. Jacoba said there are 22,000 registered DPOs in the Philippines as of 2018. He said NADPOP aims to someday have all companies that handle databases of personal information appoint a DPO, noting there is a growing need for it with the proliferation of data breaches. — Denise A. Valdez

How burdensome is the burden of proof?

“It is wrong, always, everywhere, and for anyone, to believe anything upon insufficient evidence.”
These words are from the influential essay “The Ethics of Belief” by the English mathematician and philosopher William Kingdon Clifford. In the essay, he argued that believing something based on inadequate evidence is like stealing from society.
In courts of law, it is necessary to not only present an argument but also support such contentions with valid evidence based on the provisions of the law. Without such valid evidence, the argument cannot stand on its own.
This requirement applies to tax refund claims in the Philippines which are in the nature of an exemption and must be construed against the taxpayer claiming the refund. The burden of proof to establish the right to a refund lies with the taxpayer-claimant who must show compliance with the statutory requirements of the Tax Code and existing jurisprudence.
Claims for a refund of excess and/or unutilized creditable withholding tax (CWT) finds legal basis in Section 76 of the Tax Code, where a corporation is given an option to carry over or refund such unutilized CWT if the sum of the quarterly tax payments exceeds the total tax due on its entire annual taxable income.
Section 2.58.3 of Revenue Regulations No. 2-98 implemented the following requisites:

1. The claim for refund must be filed with the Commissioner of Internal Revenue within two years from the date of payment of the tax, as prescribed under Section 204(C), in relation to Section 229 of the Tax Code;

2. It must be shown in the return that the income payment received was declared as part of the gross income of the taxpayer; and

3. The fact of withholding must be established by a copy of a statement duly issued by the payor to the payee showing the amount paid and the amount of the tax withheld therefrom.

While each of the requisites are equally consequential, let me draw your attention to the third requisite which entails the need to show evidential proof of withholding of taxes.
Being the withholding tax agent, the payor should issue a Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) to the payee to show that the applicable tax was withheld as an advance collection on behalf of the government.
But is the CWT certificate sufficient evidence to prove the fact of withholding and consequently, entitle the taxpayer-claimant to the tax refund?
In a recent tax refund case (CTA EB No. 1666 dated Nov. 23, 2018), the Court of Tax Appeals reiterated the well-settled rule that the CWT certificate is sufficient evidence to prove that taxes were indeed withheld. The decision is anchored on a myriad of Supreme Court cases that have affirmed that it is not necessary for the testimony of the person who executed and prepared the CWT certificates to be offered as proof of the authenticity of the certificates.
However, while the courts give credence to the CWT certificates as adequate proof for refund of unutilized tax credits, the burden of proof remains a question of fact at the BIR level. Thus, aside from the CWT certificates, a taxpayer is still required to offer additional documents to the BIR as evidence that the applicable withholding taxes were actually remitted to the tax authority for the claim to be granted.
Without the additional documents, such as the certification from the BIR’s Revenue Accounting Division showing the fact of remittance of the taxes supposedly withheld, or even BIR Form No. 1604-E with the Monthly Alphalist of Payees of the claimant’s customers, among others, the tax refund claim will likely be denied at the BIR level. In which case, the taxpayer-claimant is constrained to appeal the refund claim to the courts, which will entail additional cost, time, and effort.
Our tax bureau faces the arduous task of checking all the actual withholding tax remittances with limited resources and manpower. From the point of view of the taxpayers, the government should find ways to rationalize claims processes and refund mechanisms. At the end of the day, foreign investors are more likely to invest in a country that values ease of doing business, where the burden of producing evidence in refund claims is reasonably alleviated to benefit taxpayers who should rightfully recover what is due them.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Yener C. Cabalida is a senior consultant at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
+63 (2) 845-2728
yener.c.cabalida@ph.pwc.com

Resolving right of way

Eminent domain is the power of the State to take private property, without or against the owner’s consent, for public use with just compensation. The idea is that the public good overrides private rights. It is for the common interest and is a necessity in a functional society.
Private property is easily understood. There are a few cases when public use is debated or debatable. In the context of the infrastructure of roads, bridges, mass transport, airports and terminals, there is no argument on the nature of their use. If the owner agrees to be paid, the property to be expropriated is transacted on the agreed price.
Almost always, delays center on what is just in the compensation. The landowner watching out solely for his economic interest will charge a sky-high price (not based on current market value but on future market value) against a set budget from government. For a reasonable owner, the determination of what is the current or fair market value is not simple. To require appraisals will add more variables. This is gridlock of the first order.
A solution can be to provide option pricing of the lower, or higher, or average of a factor of the zonal value vis-a-vis the declared current market value of the owner, much like how transfer taxes on property are computed. Then allow for two cycles of offer and counter-offer within three months to close the deal.
But what is not evident is the other major cause of delay — the judicial procedure that necessarily comes with the expropriation proceedings when negotiation fails.
In cases where the owner cannot be identified or located, courts typically do not allow the deposit of the amount equivalent to the BIR zonal valuation of the property to the court but instead wait for the proper identification of the owner so that payment may be made directly to him. This begs the question as precisely the owner is not identified or cannot be located. The court will insist on the requirements of due notice to the owner and it is such a burden to monitor the amounts deposited.
right of way
When the owner is known, payment to him is difficult to comply with because there are no specific guidelines for expropriation cases where the property to be expropriated is currently under dispute; (ii) the owner of the property cannot immediately be determined; (iii) the owner, though known, cannot be located; and/or (iv) the property is yet to undergo extrajudicial or judicial settlement by the heirs.
The 2016 Right of Way Act addresses these issues by mandating the number of days to act and specifies the cases when payments can and are to be deposited in court. Despite these details, there is always the need for implementing circulars from the Supreme Court for clear, consistent and uniform implementation.
During the hearings, the courts are also constrained to hear expropriation cases where only a general description of the property is provided. There is limited or no available information with regard to the lot number, survey number, and technical description of the property even after extensive research by the government. This offends the judicial need for specificity and certainty.
Courts should be allowed to accept alternative descriptions of the property for purposes of the immediate issuance of the Writ of Possession in cases where such property lacks technical record or description.
On the timing of the payment, the law provides that the court shall determine the just compensation to be paid the owner within a fixed period from the date of filing of the expropriation case. This is to protect his right to property with the fixed assurance of payment. However, the Rules of Court also requires the appointment of three commissioners to determine the proper amount as just compensation which results in a longer period, more confusion, and further delays. Judges are not experts in judging economic values.
There is also a semantic delay. When the law and the rules call for the issuance of the Writ of Possession “immediately” and assign the operative value of seven days to this term, the ministerial nature of the writ is subject to different interpretations on the length of time.
The problems of right of way and its acquisition continue to hound public discourse. We experience congestion at its worst when highways abruptly narrow or stop, or when MRT lines are broken because of the lack of cooperation of individuals, the inefficiency and corruption of government, and the complicated nature of our laws and rules.
This discussion returns to the core advocacy that economic development requires as sine qua non, or at the very least to be in tandem and in sync with legal reforms. Economics is quantifiable and is focused on measurement; law is qualitative and answers to the precept of truth and justice. Each field has its own toolkit. Only with a working judicial system can resources be channeled to allow markets to function and for development to happen.

Matching the mismatched

March can be the highest point in the young lives of graduating college students. It is the month when they happily march up the stage with their proud parents. On the way down the stage steps, they daydream of starting a high-paying job and fulfilling their wildest ambitions. After all, these are the reasons for all the hard work they put in over the last few years.
But then reality sinks in: there are two hurdles to overcome before their dreams become reality: choosing and applying for a job. These are very important steps that are often taken too lightly by most applicants. In fact, this is the time to deeply reflect the career one wants to establish and not just what’s available.
In screening candidates for sales positions, I noticed that some applicants have no idea of the job they are applying for. Many times, these applicants do not even know what kind of careers they want. When questioned, they respond: “whatever vacant position is available” or “any position that fits my qualifications.” This disconnection often results in these same employees having very short and unproductive stints with the company.
In the mid-2000s, a large number of students pursued nursing degrees only to find out upon graduation that the demand for nurses was almost exhausted. Unable to find nursing jobs abroad and unsatisfied with local compensation, these graduates began applying for jobs far from their field. Some of these graduates applied and were accepted in our company. While I was looking for business graduates, we had a hard time finding the right applicants. As a result, even if we conducted two weeks of rigorous sales training, our new hires struggled with the concepts taught to them and, in the end, most of them still failed to perform satisfactorily. This is a classic example of a job mismatch.
Arne L. Kalleberg 2008 article “The Mismatched Worker: When People Don’t Fit Their Jobs” discusses the importance of identifying a mismatch. He believes that when there is a mismatch or lack of fit, a variety of difficulties are likely to result for workers and their families as well as for employers and society. Here are some of the types of mismatches:

Skills and qualifications — being overqualified or underqualified. Overqualified means having a bachelor’s or master’s degree when it’s not required for the position. Underqualified means one does not have the skills and experience to fulfill the duties and responsibilities set for the job.

Geographical or spatial location — happens when people are unable to go to work due to their inability to transfer to a different location and being assigned to a job with differences in culture.

Overworking and underworking — overworking happens when an employee works more than the desired time, multitasking and preferring to work more than is required. Underworking is when the person works fewer hours, not maximizing the working hours needed for the job.

Inadequate earnings — applies to those who receive below minimum wage or when companies do not pay for government-mandated benefits. Ironically, even some highly paid managers feel that they do not earn as much as they deserve.

Conflicts between work and family — this happens when home-related fatigue and frustrations affect work performance and vice versa.

These mismatches have negative consequences for both employees and their organizations. Employees who are mismatched with their jobs are usually highly stressed and unproductive. Often, they have no choice but to remain in their jobs due to financial needs. I often hear colleagues and friends that they feel underpaid and undervalued for multitasking. When they can no longer stand their situations, they end up resigning in the hopes of finding a job that is a better fit. Mismatches increase the hiring and training expenses of companies that encounter high turnover. The competitive advantage of these organizations may also be reduced because mismatched employees are not the best performers.
I think companies should find ways to avoid staffing their employees to mismatched jobs. By doing so, they will ultimately avoid high employee turnovers and even ensure a happier and more productive workforce. The government can also work to reduce “bad jobs.” Policies that encourage businesses to create jobs that require higher skill levels, provide living wages, and allow workers to have more flexibility over their working time will go a long way in reducing these mismatches.
So, to those entering the workforce soon, congratulations on your graduation. I hope you heed Steve Jobs’ advice: “The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.”
 
Faye Lorraine Lumanas is an MBA student of the De La Salle University Ramon V. del Rosario College of Business. This article was written as part of the requirements of the course Strategic Human Resource Management.
faye_lumanas@dlsu.edu.ph

Child safety in motorized vehicles should apply to all

About two years ago, Republic Act 10666 or the Children’s Safety on Motorcycles Act took effect and placed conditions on small children riding as passengers on motorcycles — or two-wheeled motor vehicles. I support this law, but I do not understand why tricycles were seemingly exempted from it.
Under this law, children below 18 years old may “back-ride” as passengers only under the following conditions: feet can comfortably reach the standard foot peg of the motorcycle; arms can reach around and grasp the waist of the motorcycle driver; and, the use of standard protective helmet or gear.
A report on the law by online news website Rappler cited Philippine Statistics Authority figures that an average of 671 children died every year in road crashes in the Philippines from 2006 to 2014, mostly in the 5-9 years old and 10-14 range. It also noted that motorcycle injuries were responsible for 56% of road crash deaths nationwide.
I agree with the enactment of RA 10666, but I don’t understand why it seemingly exempted — inexplicably, in my opinion — motorcycles with sidecars and tricycles. I also support the seat belt law or RA 8750 and its prohibition on children in front seats (six years old and below). But, I also don’t understand why it is required only for front-seat passengers in public utility vehicles.
But now comes a newer law — Republic Act 1129 or the Child Safety in Motor Vehicle Act — that raised the limit on front-seat prohibition to all children 12 years old and below and shorter than five feet tall. The new law also now requires the use of child safety restraints or child safety seats in cars.
I am all for child safety in motor vehicles. I can even be swayed to adjust the limit to nine years old from six. But, 12 years old? Also, if the intent of the new law is to promote child safety in motor vehicles — regardless of type and ownership of vehicle — then its guidelines should ensure that all types of conveyances will be required to use child safety seats. No exemptions. But, I guess, this will not be the case.
By making child safety seats a requirement, rather than an option, there is the implication that motor vehicles, in general, as they come out of the production lines, are generally unsafe for children 12 years and below. If so, should they then still be sold to families with young children? Or, why do we then allow them to be sold as presently configured, if such configuration is implied to be unsafe for our young?
Moreover, if the issue is safety, and the implication is that as presently configured, vehicles are unsafe for children 12 years and below, then the legal requirement for child safety restraints should cover all child passengers in both private and public vehicles. Type of ownership and use should not be an issue. Even franchised vehicles should be included.
I am a father and I have a son who just turned nine. Soon, with the new law, I can no longer drive him to and from school — or anywhere else, for that matter, unless I have a government-approved child safety seat suited and appropriate for a child his age. In fact, he cannot board and ride any other privately owned car without the required safety seat.
model peeling child safety
Will the same rule also apply to all school vans, jeepneys, taxis, Grab Cars, and public buses? If the intent of this new law is child safety in motor vehicles, it should not single out privately owned vehicles while some other motor vehicles, including motorcycles, are exempt from the requirement. There are child safety seats available for motorcycles and bicycles, but two-wheelers are not required locally to use them.
In the case of car rentals, will they also be required to supply child safety seats to customers with children 12 years and below? How about hotels cars, airport cars and taxis, and other commercial vehicles like small delivery vans of small private businesses? Can they allow children to ride without the appropriate child safety seat?
What if I am an entrepreneur with a small business and all I could afford to buy was a single-cab pickup truck or a small delivery van. The same truck or van allows me to bring my son to and from school, and my wife to and from work. Then, I use the same vehicle for small deliveries for my business during the day.
Since it is a single-cab truck, or a delivery van with front seats only, can my son still ride in front? Will the use of a suitable child car seat suffice, despite the fact that the child seat will be in “front”? If the vehicle was registered as a commercial vehicle because it is also used for deliveries, will the law requiring a child safety seat still apply to me?
What if it were a for-hire van and I drive it as a UV Express or a Grab Car (Large), will the child safety seat requirement still apply to me? If I am out with my son and I flag down a taxi or order a Grab Car, do we have to bring our own safety seat? What if we ride the jeepney or the bus or a tricycle, will they have safety seats for children?
If not, then what was intended to make children safe will actually limit their options for safer conveyances. Car owners without child safety seats will be forced to make their young children ride other vehicles that may not be required to use car seats, like taxis, Grab cars, and other public vehicles or vehicles for hire.
Children who go to school in carpools driven by parents will no longer have this option unless car seats are provided for each of the young children in the pool. Cars that used to comfortably seat three children to a row will now have to settle for two, considering the space required by child safety seats. The same goes for families with two or more small children. Safety seats must be bought for all of them.
Incidentally, there are hundreds if not thousands of electric bikes and electric scooters now on our streets — used for delivery, for going to work, for bringing children to school, for making short trips from home — and all these are unlicensed, unregulated, and general unsafe to be on our roads. Some young children ride their bikes on public roads. And yet, there is no law to cover them. Maybe we should look into legislation that will regulate them as well.
We required the purchase of Early Warning Devices (EWDs) that practically nobody uses; we required the purchase of Compulsory Third Party Liability Insurance (CTPL) that only some actually claim; we have a seat belt law and a law against distracted driving (or the use of mobile devices) that are difficult to enforce and that many motorists largely ignore; and, we have a child safety on motorcycle law that is easily circumvented simply by the purchase and use of a helmet. Now, we have a new law requiring child safety seats, probably only for privately owned cars.
I accept the fact that there is no going around this new law on child safety. And that is precisely the reason why, since birth, my son has had a car seat. We were lucky enough to borrow one for him early on, and, later on, buy a bigger one that can be used until he’s 12 years old. I removed the seat some years back, after he turned six. Luckily, I kept it. Now, it is back in the car — as required by this new law.
But what about the hundreds of thousands of other car owners with small children, or give rides to children? They all have to buy child safety seats, I guess. Relatives and friends with young children can no longer share or hitch a ride unless they bring their own safety seats. Well, they always can opt for less-safe public vehicles that are probably going to be exempt from this new law, anyway.
 
Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

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