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Southwest dispute with mechanics escalates

SOUTHWEST AIRLINES Co’s shares fell more than 5% on Wednesday after the low-cost U.S. carrier said it was investigating whether a conflict with its mechanics union was leading to a spike in flight cancellations.
The escalating labor dispute, one of the biggest to hit a top-four U.S. airline in more than a decade, comes amid a series of recent corporate headaches for the carrier.
Dallas-based Southwest was forced to delay its planned Hawaii launch due to the recent U.S. government shutdown and on Wednesday cut its first-quarter revenue growth forecast.
That followed news on Monday that the Federal Aviation Administration initiated a probe against the carrier in 2018 regarding weight and balance performance data.
Shares of Southwest fell 5.7% to close at $54.41 on the New York Stock Exchange on Wednesday.
The airline has canceled hundreds of flights since Feb. 15 due to a mixture of inclement weather and unscheduled maintenance issues that have put what it called an unprecedented number of aircraft out of service.
Southwest said there was no common theme among the maintenance issues, which followed the latest round of negotiations with the Aircraft Mechanics Fraternal Association (AMFA). The union represents about 2,400 Southwest mechanics and has been in contract talks with management since 2012.
Southwest Chief Operating Officer Mike Van de Ven said on Tuesday that the carrier would investigate why the number of aircraft unable to fly due to mechanical issues had doubled and said the airline remained committed to operating a safe fleet.
Last week the company declared an operational “emergency” and demanded all mechanics turn up for work.
AMFA disputed the carrier’s characterization of the maintenance issues on its website and said Southwest has the lowest mechanic-to-aircraft ratio of any major carrier.
“Negotiations and the degradation of safety culture are two entirely different items,” Bret Oestreich, AMFA’s national director, told Reuters.
The dispute comes at time when aviation deaths around the world have been falling. 2018 was the third-safest year ever in terms of the number of fatal accidents worldwide, according to the Aviation Safety Network.
Eric Schiffer, CEO of Reputation Management Consultants, said Southwest’s handling of the aircraft disruption had likely “highlighted a safety concern when there didn’t need to be one.”
“And whenever an airline is associated with risk, it impacts shares and sales,” Schiffer said in an interview on Wednesday.
American Airlines Group Inc is also in contract talks with its mechanics unions and asked for a federal mediator to facilitate negotiations last September. American’s mechanic contracts have not been updated since it merged with US Airways in 2013.
Southwest canceled 444 flights on Wednesday, about 20 percent of total cancellations across the United States, according to flight-tracking service FlightAware.com. It was not clear how many of the cancellations were due to weather.
The next round of mediated contract talks with the mechanics union is scheduled for March 12, Southwest spokeswoman Brandy King said.
Southwest said it had already enhanced a contract offer that the union walked away from last fall.
SHUTDOWN HIT
Earlier on Wednesday, Southwest said it expected a $60 million sales hit from the recent U.S. government partial shutdown, four times its previous estimate.
While the 35-day U.S. shutdown ended on Jan. 25, King said passenger demand and bookings continued to suffer due to uncertainty over a potential second shutdown before a government deal was reached on Feb. 14.
As a result, Southwest trimmed its first-quarter growth forecast for revenue per available seat mile to a range of 3 to 4% from a previous range of 4 to 5%.
Southwest, which flies more domestic flights than legacy peers like American, said it is hopeful that first-quarter demand softness is temporary.
However, the more than month-long hiatus in U.S. government decision-making has delayed the federal authorization process for Southwest’s plans to launch service to Hawaii, which it had hoped to begin early this year.
That process is currently under way, though the carrier has as yet been unable to announce a launch date.
Goldman Sachs said this means the airline will have a shorter window to sell tickets to Hawaii, forcing it to discount heavily at a time when most rivals expect an improvement in ticket prices. It issued a “sell” recommendation on the stock. — Reuters

Strengthening the middle office

THE middle child syndrome is a psychological condition among children born in the middle who feel left out. The first-born received privileges and the youngest received indulgence. The middle child is burdened with a feeling of exclusion and this results in misbehavior in order to catch the parent’s attention.
A similar situation occurs in many firms. While the front office is equipped with latest and greatest technologies to keep them generating income, the back office receives regular tune-ups to ensure operations is running smoothly. How about the middle office? Often, it is usually an underfunded or worst, neglected office. Alarming as it sounds, the vital elements happens there — pricing, valuation, collateral management, market risk — yet time and again they are left alone to fall into disrepair.
The middle office is the part of a financial firm that sits between the trading desk and the clearance and settlement units. The middle office manages risk, calculate profits and losses and is often in charge of information technology. It has historically been taken for granted by financial firms. It is often classified as a cost center and receives the least attention and funding. Middle office specialists often gripe that they are the forgotten middle.
There are perils of failed middle office operations. One such example is in reconciliation — an everyday process in varying institutions. Consider Merill Lynch in the United States whose errors elicited unwarranted attention from regulators that led to a $1.2-million fine — a result of bad management of reconciliation and client billing of fees. While the real story inside the 2014 incident is left unpublished, the case showed that the middle office cannot be neglected.
Regardless of how minor any errors might seem, clients could take their business elsewhere if they have been overcharged. In a market with thin margins, financial firms cannot afford to lose even a portion of its business. Moreover, regulators are getting strict on operational shortcomings as seen in the case just cited.
There is a tendency to blame all the errors in the middle office on untrained and mismanaged staff. But could it be possible that unfortunately the middle office received lower priority in technology spending? Most of such investments are focused on front-end analytics designed to haul in the business revenues. Technology spending on the middle and back office needs scaling up. Incentives too will naturally favor the front office but management needs to find ways to provide commensurate and proportionate rewards as well as training on improved job competencies.
Middle office and back office jobs are generally non-revenue producing. There was a time, according to Investopedia, that unlike the pedigreed MBAs required of the front office, the middle/back-office personnel were only required to have a high school diploma. Of course, the technical and skill requirements have changed as transactions and technology have become more complex. However, this vignette points to the lack of attention the middle and back officers used to get.
While middle office is now gaining the attention it needs, firms must realize the value of the data they hold and find ways to include it into systems across the enterprise to improve the quality of insight generated. Not paying attention to the middle office can have a debilitating effect on the enterprise. It is also an eye opener to those who only focus in the front offices that if they want to get their houses in order, then they should pay attention to and include their “middle children.”
The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.)
 
Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

Infrastructure demand lures tower companies

A TOTAL OF four tower companies have signed memoranda of understanding (MoU) with the Department of Information and Communications Technology (DICT) this week as high demand for towers in the country makes the Philippines an attractive market.
On Thursday, the DICT welcomed its 12th common tower provider, J.S. Cruz Construction and Development, Inc., after it signed MoUs with three foreign firms last Tuesday.
Frontier Tower Associates Management Pte. Ltd.; the consortium of Global Networks, Inc. (GNI) and JTower, Inc.; and American Tower Corp. (ATC) signed MoUs with the DICT earlier this week.
The government has been welcoming waves of tower providers since December. The total as of Thursday is 12, but the DICT is not keen on stopping anytime.
Talagang kulang tayo ng towers [We really lack towers]… Even telcos (agree), that’s why they’re interested (in the common tower initiative)” DICT Acting Secretary Eliseo M. Rio, Jr. said earlier this week, when asked about the growing number of tower providers entering the country.
GNI Executive Director Devid H. Gubiani told reporters the Philippines is an attractive market for tower providers.
“Very simply, you have a hundred million people in the Philippines. If you take just a very basic room, you should have between 50,000 and 60,000 towers. Today, the number is 16,000… The market for bringing out a new tower infrastructure has to really take place,” he said.
“We see this as a great way of getting the whole industry together. We need definitely more than one player, definitely more than 10, in order to get all these efforts together to really ultimately benefit the users in the Philippines,” Mr. Gubiani added.
Sudhir Prasad, chief executive officer of ATC in Central and South East Asia, also recognized this demand as a motivation to enter the Philippine market.
“We see that this is a market where there’s an upward potential of having a total amount of towers within the range of 45,000 to 55,000,” he said, adding that the entry of a third telco player further strengthens this need.
“The Philippines is a market that ATC believes may have the potential to be an interesting opportunity provided that the right assets, commercial terms and market dynamics develop at appropriate economics,” Mr. Prasad added.
But Mr. Rio admitted they could not tell if all the tower firms would prosper in the country.
“We still don’t know as of now if that is more than what the industry can accommodate, but definitely this exercise will give us indicators,” he said.
As for the DICT, the MoU it seals with the tower companies is an assurance that it will assist them in regulatory compliance as soon as they seal tower orders from the telcos.
Aside from Frontier Tower Associates, GNI-JTower consortium, ATC and J.S. Cruz Construction, the other firms that make up the 12 providers are: ISOC Infrastructures, Inc.; ISON ECP Tower Pte. Ltd.; IHS Holding Ltd. (IHS Towers); edotco Group Sdn Bhd; China Energy Equipment Co. Ltd.; RT Telecom Sdn Bhd.; Aboitiz InfraCapital, Inc. and MGS Construction, Inc.
The DICT is targeting to have an additional 50,000 towers in the next seven to 10 years. — Denise A. Valdez

Your Weekend Guide (February 22, 2019)

Dirty Old Musical take three

Dirty Old Musical (DOM), about a 1980s one-hit wonder band that reunites more than 30 years later to raise funds for an ailing member, is back for a third run with new cast members and new songs. It opens today and runs until March 23 at the Music Museum, Greenhills Shopping Center, San Juan. This iteration stars The Dawn frontman Jett Pangan, Robert Seña, Nonie Buencamino, Bo Cerrudo, and Carlo Orosa. Tickets are available at TicketWorld (www.ticketworld.com.ph), the Music Museum (721-6276) or via Spotlight Artists Center (776-4487/0919-911-4444). Ticket prices range from P1,000 to P3,000.

The Phantom of the Opera

ANDREW Lloyd Webber’s musical The Phantom of the Opera has opened at the Theater at Solaire with shows until March 10. Based on Gaston Leroux’s novel of the same title, the story is set in the Paris Opera House where a young soprano becomes the object of The Phantom’s affection and he manipulates her career at the expense of the opera house staff and stars. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

2019 Ortigas Art Festival

Ortigas & Company holds the second edition of its art festival, which features a number of art exhibits around the Estancia mall. A number of activities have also been lined up, which visitors can join for free: Print-making with Benjamin Cabrera (Feb. 23), Watercolor with Peter Sutcliffe (Feb. 24 and March 2), and Alla Prima Painting with Renato Habulan (March 3). All workshops start at 1:30 p.m. The Ortigas Art Festival 2019 is ongoing until March 3. For more details, visit www.ortigasmalls.com.

Rep’s Miong

TWENTY years after its first staging, Repertory Philippines presents Miong, a musical on Gen. Emilio Aguinaldo which spans his birth in 1869, to the declaration of independence on June 12, 1898. Shows are presented at Onstage Theater in Greenbelt 1, Makati until March 10. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

PETA’s Charot!

PETA presents Charot!, a comedic musical which imagines a future under a new constitution and its consequences. The show runs until March 17 at the PETA Theater Center in Quezon City. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Every Brilliant Thing

EVERY BRILLIANT THING, a one-woman play by Duncan MacMillan and Johnny Donahoe, tells the story of a little girl who chronicles all the little things that make life brilliant in an attempt to keep her mother from suicide. Starring Teresa Herrera and directed by Jenny Jamora, it runs until Feb. 24 at the Maybank Performing Arts Theater in BGC, Taguig. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Eto Na! Musical nAPO! Returns

THE musical comedy Eto Na! Musical nAPO! about seven friends who join a songwriting and singing contest, featuring the music of APO, returns to the stage with performances until March 17 at the Maybank Performing Arts Theater at the BGC Arts Center in Taguig. For tickets and schedules, contact TicketWorld (www.ticketworld.com.ph, 891-9999).

Dealing with a skeptical boss and colleagues

I was hired four months ago to handle the human resource department of an upstart restaurant business. During this period, I’ve tackled many challenges in my job that I found unusual. For one, branch supervisors and managers don’t follow simple office rules on employee discipline. In case of excessive absences or tardiness on the part of cooks and waiters, branch heads don’t bother to discipline them. Several times, when HR recommends the suspension of violators, they would defend them and claim no one will be left to perform their duties, which would force the closure of the business for few days. I told them that employee discipline is important to people management that cannot be ignored. Unfortunately, they don’t want to listen. I told the CEO about it, but he appears to be sympathetic with the managers who claim that the business would lose money if we are strict with people. Is there a better way of handling this problem? — Losing Proposition.
In the 1920s, bootleggers created the wine brick to circumvent the law against liquor production. The wine brick came from pressed grape concentrate and was made in the form of a brick which allowed grape farmers to sustain their livelihoods during Prohibition. On the label, this warning was printed: “Do not let this brick sit in a gallon of water for 21 days. It will ferment and become illegal wine.”
That absolved the manufacturer from violating the law and passed on the responsibility to the consumers.
What if we follow the same approach? What if we put the primary responsibility of increasing revenue on the shoulders of the branch heads? Of course, if there are absences, how could a branch sustain its operations without its people? That puts the onus on branch heads to look for solutions to their problems. They could probably maintain a list of on-call chefs and staff who could readily respond at moment’s notice in order to keep a certain branch to service dining customers.
But what if they don’t respond right away? Besides, who would want to take on on-call employment?
I’m not sure if this idea will be accepted by the branch heads or even by the CEO. Therefore, you should be prepared with data to highlight how attendance issues are adversely affecting the restaurant operations. Quantify the money the business is losing as a result of employee absences.
In case of absence or tardiness, how would they solve the issue while at the same time ensuring the smooth operations of the restaurant business? Let them analyze the whole situation with the end in view of defining a sustainable solution acceptable to everyone.
This is a challenge for HR. No matter how easy the issue is to understand, many line supervisors and managers would reject the idea of handling employee discipline. Therefore, to minimize if not eliminate the risk of their rejecting your idea of strict implementation of punctuality rules, the solutions must come from the stakeholders themselves. To avoid the complicated issue of pitting HR against the branch managers, the first step is to be prepared to counter criticism with the following approaches:
One, be your own critic by anticipating the issues that might be raised against your own ideas. Decide who must be convinced first in order for your idea to be accepted. The greater support you muster in the approval process, the greater chance that it will be implemented by all concerned. Therefore, it’s imperative that you consult everyone prior to the implementation of your attendance policy as you cannot be a one-man corporate police officer.
Whether to convince first the CEO or the branch heads depends on their management style and how you perceive their openness to accepting new ideas. After all, the close monitoring of employee attendance and their punctuality may be obsolete in certain industries. Just the same, study this very carefully with the help of all concerned.
Two, emphasize positive, instead of negative employee discipline. Assist the line supervisors and their managers in coaching and motivating people so they become friendly with their workers for the right reasons. Establish a model branch of the month that includes a model employee program.
Of course, you need a concrete was of determining winners that may include a perfect-attendance award, a revenue metric, or zero customer complaints, among other parameters. Whatever you do, seek the consensus of the branch managers. If they approve of your idea, then seek the final approval of the CEO.
Last, understand the office dynamics in the organization. Sometimes, you may have the mistaken belief that only those in the organization chart are the best people to consult. Of course, they are. However, there are many people holding various ranks in the company who possess power above and beyond their official capacity.
You may be surprised to know that even your own staff may wield influence long before you came on board. The reasons can range from their loyalty to the boss or close affiliation with some branch managers, up to personal friendships with those people who have a direct line to the CEO.
Discover the connections and you may discover the answer to your problem.
More than anything, consider knowing your blind spots as well. You may have a credibility issue that you don’t know about in the first place. This is not something that can be corrected overnight, since it’s a slow process to build considering you have only been employed for four months.
Whenever it’s practical to do, always seek the feedback of your boss and your counterparts in other departments. That way, it could be easier to pro actively correct your ways than wait for greater damage to come.
 
Send feedback or workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting. Everyone will be treated anonymously if desired.

Domestic market capitalization of select stock exchanges in Asia Pacific (January 2019)

Domestic market capitalization of select stock exchanges in Asia Pacific

How PSEi member stocks performed — February 21, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, February 21, 2019.

 
Philippine Stock Exchange’s most active stocks by value turnover — February 21, 2019.

Agri dep’t steering farmers to plant high-end rice

rice palay harvest
PHILSTAR/MICHAEL VARVCAS

THE Department of Agriculture (DA) said it is now encouraging farmers to plant special rice to fill a developing niche for “good eating quality” and “aromatic” varieties whose prices are not controlled, in the face of more liberal imports of rice intended for low-cost markets.
“The strategy now is to encourage farmers to plant special rice RC 160, RC 218, RC 300, of good eating quality and even aromatic.” Mr. Piñol said in a briefing in Quezon City.
“It is a lot higher [in price] than the ordinary palay bought now at P14 to P15 per kilo,” according to Mr. Piñol, noting that RC 160 rice can command P22 to P25 per kilo at farmgate level.
The Rice Tariffication Law will come into force in early March, and will allow private entities to import the staple more freely from more efficient producers outside the Philippines. Southeast Asian rice will be charged tariffs of 35% according to regional trade agreements. The measure is expected to make rice affordable for the poor, control inflation, and generate revenue from the tariffs. However, the industry has also warned that domestic farmers might be forced out of the market by cheap imports.
Its enactment has led the DA to abandon its long-held goal of 100% rice self-sufficiency and set a target of around 93%, which is the current share of domestic rice as against imports.
“We may be contented with just the 93% that we have right now. The influx of imported rice may affect the prices of rice in the market and further dampen the buying price of palay,” Mr. Piñol said.
Mr. Piñol added that the DA is hoping to develop a market for organic rice which can be exported.
“We are going to open a new market and this could be the organic rice market… which could be our outlet for excess production,” Mr. Piñol said.
The new law also calls for the establishment of the Rice Competitiveness Enhancement Fund (RCEF) which will be endowed with P10 billion a year for six years to improve mechanization, access to seed and access to financing in the industry.
The industry has raised fears that corrupt politicians might gain control of the fund, while Mr. Piñol suggested that the funding might not suffice for farmes’ seed needs.
“We agreed that greater support will be given to Filipino rice farmers. This will come in the form of rice seeds and fertilizers as ordered by the President. When we computed the amount of money allocated for rice seeds, we discovered that it will not be enough to cover the rice farmers,” Mr. Piñol said.
He also lobbied for RCEP funding to be available before the next planting.
“We need to provide interventions to the farmers in the next planting season but I think we won’t be able to do it because we have no money yet,” Mr. Piñol said.
The rice tariffication law is scheduled to take effect by March 5 and the National Food Authority (NFA), which will lose its importing role under the law, is set to finalize the Implementing Rules and Regulations (IRR) within 30 days.
According to Mr. Piñol, consultations will be held with stakeholders starting Feb 26 for the Northern Luzon cluster covering the Cordillera Administrative Region (CAR) and Regions 1, 2 and 3.
Discussions among stakeholders in Southern Luzon covering Region 4A, Region 4B, Region 5, are scheduled for Feb. 28, while consultations with stakeholders in the Visayas are set for March 1.
“On March 2, the policy planning office of the DA will work to complete a collated report on the results of the consultation and DA will submit and present this during the NFA Council meeting on March 5,” Mr. Piñol said. — Reicelene Joy N. Ignacio

DA treading carefully amid calls for pork, chicken import ban

THE Department of Agriculture (DA) said it will review recommendations by farmers and some politicians to impose a total import ban chicken and pork, Secretary Emmanuel F. Piñol said on Thursday.
“You have to understand that we have to really study the proposal to ban the importation of chicken and pork. It will have a backlash,” Mr. Piñol told reporters, when asked to comment on proposals to impose a total ban on chicken and pork due to oversupply, as well as the potential threat of African Swine Fever (ASF).
“We will be sued by World Trade Organization members,” Mr. Piñol added in the event of a ban.
Earlier, Ilocos Governor Imee R. Marcos called for a total ban on imports of pork and chicken, to help domestic hog and poultry raisers.
“We should suspend importation to give our local and backyard raisers breathing space to recover from their losses. There’s an oversupply of pork and chicken,” Ms. Marcos said.
Farmers’ group Samahang Industriya ng Agrikultura (SINAG) has called for a total ban on imports from Europe, while the Pork Producers Federations of the Philippines (ProPork) urged DA to impose a total ban on imports from all countries, to prevent the possible entry of ASF.
“We need to review the best course of action. I cannot simply order a ban on imports,” Mr. Piñol said. — Reicelene Joy N. Ignacio

Chinese ambassador invites Duterte to Belt and Road forum

THE Chinese ambassador has expressed his support for the police officer involved in the “taho” incident, and urged the government to prosecute the Chinese woman who was recorded on video assaulting the policeman who barred her from boarding a commuter train with her soft tofu drink.
In a briefing, the President’s spokesperson Salvador S. Panelo said Thursday that Chinese Ambassador to the Philippines Zhao Jianhua met with Mr. Duterte at the Palace on Wednesday to say, among other things, that such behavior is “not tolerated” in China.
The ambassador paid a “long courtesy call” to the President, Mr. Panelo said, and also invited him to visit China in April for the second Belt and Road forum in April, to which Mr. Duterte responded that he was “looking forward” to making the trip, Mr. Panelo said.
“He extended [the] invitation to the President, and conveyed greetings from the President of China,” Mr. Panelo added.
Mr. Panelo also said, “It was a long courtesy call. I think it took us one hour and a half; and first, he extended his greeting and (commended) the police officer who was the subject of the ‘taho’ incident. He said he saw the video, and [he] said he was impressed by the professionalism and restraint exhibited by the police officer.”
Mr. Zhao, Mr. Panelo added, said that the government of China “does not tolerate this kind of behavior.”
“In fact he said that in the Philippines, we should prosecute nationals of other countries including Chinese who violate our laws; in the same way that the Chinese government will also prosecute foreign nationals that violate their laws,” Mr. Panelo said.
The official Xinhua news agency has reported that the second Belt and Road forum will be held in Beijing.
Quoting Mr. Zhao, Xinhua said “the Chinese government attaches great importance” to Mr. Duterte’s presence at the said forum.
The report added that Mr. Zhao said the attendance of Mr. Duterte “will help enhance Belt and Road cooperation and boost the development of bilateral relations.”
Mr. Duterte had attended the first Belt and Road Forum in Beijing in May 2017. — Arjay L. Balinbin

Funding, personnel shortages will force DoH to address health care law priority areas first

THE Department of Health (DoH) said the early stages of implementing the Universal Health care (UHC) Law, faces challenges because of a shortage of funding and health workers.
In a briefing on Thursday, Secretary Francisco T. Duque III said he expects implementation to be gradual.
“We will increase the supply of human resource but right now, it’s not enough. This is a work in progress. Just because the law was signed yesterday you will not see tomorrow all barangays sprouting health stations like mushrooms,” he said.
He added that the early priority is disadvantaged areas.
On Wednesday, President Rodrigo R. Duterte the UHC Law. The law calls for all Filipinos to be automatically enrolled for coverage by the Philippine Health Insurance Corp. (PhilHealth) or the National Health Insurance Program. The law will promote a shift in investment focus by the DoH in favor of primary care facilities. Meanwhile, Philhealth will be expanding its primary care benefits program.
Current PhilHealth members will still have to pay premiums every month. The law also creates a class of subsidized members.
Both the DoH and PhilHealth will be given 180 days to draft the implementing rules and regulations IRR.
“We would like to be as deliberate and certain about the IRR covering all areas, addressing gray areas. It is not correct to think the Universal Healthcare Law will just happen overnight and/or after 180 days,” said Mr. Duque.
The DoH said it needs P257 billion in order to fully implement the UHC Law but the 2019 National Budget only provided P217 Billion.
Senator Joseph Victor G. Ejercito said in the same briefing that the Senate pledged to allocate P18 billion more to the UHC’s budget during its Bicameral conference committee hearing on the General Appropriations Act (GAA) for this year.
“During the Bicam before we submitted the budget, the Senate added P18 billion to aid in the implementation of Universal Health care,” Mr. Ejercito said.
He added that the chamber also restored the budget for the health facilities enhancement program (HFEP) and the human resource for health (HRH) worth a combined P20.8 billion.
PhilHealth Acting President and CEO Roy B. Ferrer said the company expects the government to sustain its UHC program with legislators endorsing higher tobacco taxes.
“For the coming years, with additional taxes from the tobacco and alcoholic beverages, our actuarial projection is (we will sustain it)” due to the higher tobacco and alcohol tax apart from appropriations, he said.
UHC is currently funded directly from the DoH budget, PhilHealth subsidies, and PhilHealth collections. Funding will also come from the Philippine Charity Sweepstakes Office, the Philippine Amusement and Gaming Corp. (PAGCOR), and the DoH-Medical Assistance for Indigent Patients (MAIP) program which will be shared with PhilHealth.
“The UHC Act demonstrates the result of strong political will that places the welfare of our countrymen above all else,” Mr. Duque said. — Gillian M. Cortez

DTI’s latest SRP list reflects 1-5% price hikes in some commodities

THE DTI implemented SRP adjustments after thorough evaluation and consultation with the manufacturers of basic and prime goods. — BW FILE PHOTO

THE Department of Trade and Industry (DTI) released its updated suggested retail price (SRP) list of basic necessities and prime commodities (BNPCs), which reflected price increases in 23% of the items on the list.
The DTI said the higher prices were attributed to raw materials costs and a weaker peso.
Dated Feb. 13, the list posted on the agency’s website contains 242 shelf keeping units (SKUs), of which 56 were listed with higher prices compared with the last list.
“The DTI implemented SRP adjustments after thorough evaluation and consultation with the manufacturers of basic and prime goods,” DTI’s Consumer Protection Group (CPG) Undersecretary Ruth B. Castelo said in a statement Thursday, adding the increases were kept to the “absolute minimum.”
In a mobile message to reporters on Thursday, Trade Secretary Ramon M. Lopez said several of the brands which were granted SRP increases cooperated late last year with the DTI’s request not to increase prices for three months to contain inflation.
He added that those that sought an increase raised prices by between 1% and 5%.
Canned sardines of the 155-gram variety rose between P0.40 and P1.30 amid higher materials and packaging prices and fuel.
It said the price of fish rose 33% in December due to the closed fishing season which began in November and runs to February 2019.
Prices of processed meat also increased due to higher costs from meat and packaging materials, it said.
The price of evaporated and condensed milk products also rose between P0.50 and P1.10 and P0.50 to P1.20, respectively, due to significant increases in the cost of skimmed milk powder and anhydrous milk fat, and a weaker peso.
Vinegar, fish sauce and soy sauce also increased in price due to rising cost of materials like fish extract and soy bean meal and higher labor and packaging material costs. — Janina C. Lim

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