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DoLE may lift Micronesia OFW deployment ban

THE Secretary of Labor said that he is looking into the possible lifting of a deployment ban of Overseas Filipino Workers (OFWs) to the Federated States of Micronesia, imposed earlier this month by the Philippine Overseas Employment Authority (POEA) earlier this month.
“I asked (POEA Administrator Bernard P.) Olalia and if there is any basis to lift the ban,” said Department of Labor and Employment (DoLE) Secretary Silvestre H. Bello III.
The labor secretary explained that the issue regarding the total deployment ban covering the Federation is not solely in DoLE and POEA’s hands, adding that the Department of Foreign Affairs (DFA) needs to make a determination that work conditions have improved.
On Sept. 4, the POEA issued Governing Board Resolution No. 5 which notes that the DFA recommended a total deployment ban of OFWs to the Federation “unless it settles the unresolved cases and improves working conditions of OFWs.”
In 2017 the DFA issued reports that OFWs employed at Chuuk State Hospital have not been receiving wages.
POEA issued Advisory No. 6 Series of 2017 noting that the Federation government “made no effort to improve working conditions and guaranteeing the timely payment of salaries and benefits of workers.”
The 2017 advisory of the POEA also announced the blacklisting of Chuuk State Hospital, barring it from recruiting OFWs.
Mr. Bello said that he has received information that there is only one OFW complaining of non-payment of wages about which he is still waiting further communication.
Upon verifying whether there is only one complainant, Mr. Bello said “We will definitely order the lifting of the ban.”
He added an employment ban is too drastic a response for only one complainant.
POEA reported that there are around 2,000 OFWs who are working in the Federation. — Gillian M. Cortez

Proclamation grants ecozone status to DM Wenceslao’s Aseana 3 building

PRESIDENT Rodrigo R. Duterte issued a proclamation on Tuesday designating as a Special Economic Zone the Aseana 3 Business Process Outsourcing (BPO) Building at the Aseana Business Park in Parañaque City.
Signed on Sept. 25, Proclamation No. 592 cites as its authority “the Special Economic Zone Act of 1995, as amended by the Republic Act (RA) No. 8748, and upon the recommendation of the Board of Directors of the Philippine Economic Zone Authority (PEZA).
It added: “I, Rodrigo Roa Duterte, President of the Republic of the Philippines, do hereby create and designate a building to be known as the Aseana 3 BPO Building…as Special Economic Zone (Information Technology Center)…”
The building has a gross floor area of 47,834.24 square meters on a 3,139 square-meters site along Aseana Avenue corner Macapagal Boulevard, Aseana City in Parañaque City, according to the proclamation.
Aseana 3 is a project of the property and construction firm D.M. Wenceslao &Associates, Inc. (DMWAI).
According to the DMWAI website, Aseana 3 is a 14-storey building “designed to cater to the Business Process Outsourcing (BPO) industry.” — Arjay L. Balinbin

Asia’s oil deficit seen widening by 2025

SINGAPORE — Asia’s oil deficit will widen to 35 million barrels per day (bpd) by 2025, up about 30 percent from the current 27 million bpd, amplifying global trade flow imbalances, a senior executive at French oil and energy group Total said on Tuesday.
At the same time, Europe’s imports will be stable at 10 million bpd, while exports from North America and the Middle East will increase, said Thomas Waymel, the company’s president of trading and shipping.
The United States will export shale oil, but its refineries will continue to import medium and heavy sour grades, Waymel said during the Asia Pacific Petroleum Conference (APPEC) in Singapore.
Regulatory changes like IMO 2020, which will cap sulfur content in ship fuel, will be another driver for growth and changing trade flows, he said.
“The fuel oil flows will be reduced. At the same time, the shipping industry will need distillates … so Europe and Singapore will attract more distillates,” Waymel said.
New trade flows might emerge for high sulfur fuel oil either in coker capacity or power plants switching back from coal or gas to high sulfur fuel oil.
Light sweet crude will be more in demand, while heavy sour grades will need to be processed by complex refineries, he said.
“Regulatory changes will dramatically affect an increase in flows of both crude and products. It should also have positive impact on freight rates which is finally good news for ship owners,” he said — Reuters

PET grants 25% shading threshold in VP recount

By Vince Angelo C. Ferreras
THE SUPREME COURT, sitting as the Presidential Electoral Tribunal (PET), has granted an appeal by Vice-President Maria Leonor G. Robredo to lower the ballot shading threshold from 50% to 25% in the manual recount of votes for the 2016 vice-presidential contest.
At the time, Commission on Elections had calibrated vote counting machines to read even ovals with 25% shading. However, the PET was not immediately informed of this new rule, in contrast to the poll body’s following a 50% shading threshold in the 2010 general elections.
In a 21-page resolution last week and conveyed to the opposing parties last Tuesday, PET cited Comelec’s 25% voting threshold in the 2016 elections.
Mrs. Robredo confirmed that PET had already made a decision last Sept. 18, but it was only yesterday afternoon that both parties were informed. Her occupancy of the vice-presidency is being challenged by her rival in 2016, former senator Ferdinand R. Marcos, Jr., who is also pushing for the 50% voting threshold.
“From the foregoing, for the purposes of the 2016 national elections, the fifty (50%) shading threshold was no longer applied. It is likewise clear however that a new threshold had been applied,” a portion of the resolution stated.
Mr. Marcos had selected three pilot provinces for the manual recount of votes: Iloilo, Negros Oriental, and Ms. Robredo’s home province of Camarines Sur. The recounting in these provinces started on April 2.
Lawyer Beng Sardillo, a member of Ms. Robredo’s legal team which presided over her press conference on Wednesday, said they are expecting the vote recount to be finished by November or December.
But Ms. Robredo’s lawyer Romulo B. Macalintal said he expects another hearing following the vote recount. “The Presidential Electoral Tribunal will conduct a hearing, through the appointed hearing commissioners, where the parties will submit their evidence,” he said.
Mr. Macalintal added, “We consider the resolution as a very significant legal and political victory on our part. And this will greatly boost the morale of our supporters, who were so worried with the reported reduction of Robredo’s votes due to this highly controversial threshold issue.”
“We can already assure the public that the true results of the elections will confirm that our Vice-President Robredo was the duly elected Vice-President, in a clean and honest election, and that Marcos’ protest, from the very, very start, has no visible means of legal or factual support,” Mr. Macalintal also said.
For her part, Mrs. Robredo said, “Para sa akin, iyong value ng desisyon hindi lang sa protest na ito, kundi sa lahat ng election cases, kasi it was overemphasized in the decision na kapag electoral cases, ang pinakamahalaga talaga, iyong intent ng voters.” (For me, the value of the decision is not only on this protest [case] but on all election cases, because it was overemphasized in the decision that when it comes to electoral cases, the most important [consideration] is the intent of the voters.)
The Marcos camp was sought for comment as of this reporting.

Can’t deny D&I: Why diversity and inclusion matter

Diversity and inclusion (D&I) are increasingly becoming a business priority. In a time of great changes and disruption, business leaders are pressured to keep up by attracting and retaining the best talent, serving their customers better, and increasing their stakeholders’ trust — all of which are benefits that D&I can offer.
Numerous social changes have drawn the attention of business leaders towards D&I. More than ever, the general public is more vocal about social justice issues, engaging in political discussions, and fighting for social change. Popular movements such as Me Too, Pride, and Black Lives Matter — to name a few — were formed to support women, the LGBT+ community, and African-American minorities. With the pervasiveness of social activism, D&I has become a reputational risk that businesses cannot simply ignore.
Business, talent, and societal challenges are among the tremendous forces working together that reshape how leaders run their businesses. Our world grows increasingly complex and polarized by the day, thereby making D&I a key imperative of modern-day business. Those who embrace it are more ready to respond to an ever-changing world and are in the best position to reap the growth opportunities and benefits offered by a diverse and inclusive workforce.
THE BENEFITS OF D&I
There are proven benefits to building a diverse and inclusive workforce. D&I helps businesses address challenges and leverage opportunities around talent, customers, and investors.

1. Attracting and retaining talent

Globally, the war for talent is increasingly competitive. Talent with the right skills is even more difficult to attract and retain. PwC’s 20th Global CEO Survey shows that 77% of CEOs are concerned about the availability of key skills and see it as a threat to their business goals.
In a competitive labor market, employees are increasingly looking for organizations whose values are aligned with theirs. PwC’s 2017 Inclusive Recruitment Survey shows that employers’ attention to D&I is a key consideration of potential talent when looking for work. Some 54% of women and 45% of men surveyed said that they research a company’s D&I policies before deciding to accept a position. This is also true for LGBT+ and millennial talent. Based on PwC’s Out to Succeed Survey, more than 80% agree that policies on diversity, equality, and inclusion are critical factors in deciding to work for a specific employer. Locally, some companies are responding to this by offering benefits for partners of their LGBT+ employees.
It can be reasonably concluded that organizations which do not prioritize D&I are unable to fully maximize the vast talent pool in the market. It also proves that D&I is a powerful brand differentiator that can help businesses become an employer of choice.
Embedding D&I in organizational recruitment, retention, and development policies will help businesses expand their horizons, allowing them to look for the best talent even in the most unexpected places, and to retain them whoever and wherever they are.

2. Closer to customers

There are increased expectations from the public for businesses to mirror the diversity of the society that they serve. Failing to do so hinders organizations from fully understanding and addressing their customers’ evolving needs.
Businesses are starting to acknowledge how a diverse and inclusive workforce allows them to win the trust of different communities, provides opportunities to understand customers better, and enables them to create more targeted products and services. In fact, a 2018 LinkedIn report shows that 49% of surveyed employers are focusing on diversity to better represent customers.
D&I also nurtures customer loyalty. Businesses have started to advocate social change to address the more socially and politically-conscious consumer. Case in point: with the growing spending power of LGBT+ consumers and allies, some organizations have responded by creating more inclusive and LGBT+ friendly marketing campaigns.

3. Enhancing trust

Disclosures on diversity and inclusion are becoming more and more important to shareholders and investors. These stakeholders want to ensure that they are investing in businesses with stable reputations.
An organization’s transparency about D&I, no matter how bad or good its track record is, enhances the trust of stakeholders. To this end, numerous global companies (including tech giants Google and Apple) have started publishing diversity and inclusion reports on their corporate websites.
MOVING FORWARD WITH D&I
To move forward with D&I requires businesses to realize that diversity and inclusion are two different concepts that must go hand in hand.
Diversity brings together individuals of different backgrounds, experiences, culture, and preferences. Inclusion cultivates a workplace environment where individuals can be their true selves, where they feel that they belong and are supported, and where their contributions are valued.
It is not enough to prioritize workforce diversity alone. Businesses must also foster an inclusive culture where people feel welcomed, valued, and accepted for who they are. Neglecting inclusion to prioritize diversity may lead to disappointing effects that can undermine an organization’s D&I efforts.
For organizations that are about to start their D&I journey, embedding D&I in the culture should come first. To make this happen, organizations need a D&I program that will propel culture, behavior, and consequently, processes.
To build a D&I program, organizations must:

1. Understand the facts of today — Initiate a continuous process to understand what is happening in your organization. Gather, analyze, and share data to determine your baseline on D&I and identify improvement opportunities.

2. Develop an inspirational strategy — Create a business-focused vision and strategy for D&I that is action-oriented and widely-communicated.

3. Engage leadership — Engage leadership around an inspirational D&I strategy. Hold leaders accountable for D&I results. Make D&I a sustainable C-suite priority fundamental to the success of the business.

4. Create sustainable movement — Execute D&I strategy across all elements of your business and talent ecosystem. Monitor progress.

A successful D&I program will not happen overnight. For many organizations, there is still a long way to go. Realizing the full benefits of D&I requires a good understanding of an organization’s workforce mix and the ability to align it with business strategy. Nevertheless, the benefits from D&I make the journey worthwhile and acting now will surely result in greater long-term gains.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Louise Margareth O. Luarca is a senior associate with the Management Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728
louise.margareth.luarca@ph.pwc.com

Red October plot a fantasy from Tom Clancy — Senator

SENATORS ON Wednesday weighed in on an alleged “Red October” destabilization plot involving the political opposition, with the minority leader dismissing the alleged plot as a “fantasy tale taken from a Tom Clancy thriller.”
But at the House of Representatives, its leader, citing her experience as Philippine president, gave President Rodrigo R. Duterte’s claim of such a plot the benefit of the doubt, saying he is “working from good information.”
TOM CLANCY
In a statement, Senate Minority Leader Franklin M. Drilon said of Mr. Duterte’s ouster claim, “This opposition-communist ‘Red October’ destabilization plot is a discredited fantasy tale taken from a Tom Clancy thriller and being peddled by those who undermine our democracy to justify the declaration of a so-called revolutionary government.”
The Hunt for Red October is one of many espionage thrillers by best-selling author Tom Clancy. The book was adapted into a film in 1990 starring Hollywood stars Sean Connery and Alec Baldwin.
“This is an old familiar tune and it sounds like a broken record,” Mr. Drilon also said. “We in the Liberal Party strongly deny being part of any destabilization plot. We adhere to the rule of law and the supremacy of the 1987 Constitution.”
For his part, Senator and LP president Francis N. Pangilinan said those who give the President false intelligence reports must be fired.
“Billions are spent on intelligence funds for fabricated information….Instead of finding solutions to the worsening crisis in the price of rice and the economy, ways are being made to divert attention from the real problem of the country,” Mr. Pangilinan said in a statement.
In a media interview during his visit in a Sulu military camp last Monday, Mr. Duterte said “some soldiers” in the military are conniving plotting with the opposition to overthrow him.
“Diyan ako naghihinakit sa kanila, ‘yung mga sundalo na ‘yan. Hindi na bale magalit sila sa akin, wala ‘yon. But to go into cahoots with the kalaban… Ako isa lang ako eh,” Mr. Duterte said. (That’s my misgiving to them, those soldiers. Never mind if they’re angry at me, that’s nothing. But to go into cahoots with the enemy,…I’m just one.)
For his part, Senator Panfilo M. Lacson said, “There’s nothing unusual. While the President is very supportive and consistently at that, upon his assumption, with the all the goodwill he gave to the Armed Forces, he cannot have 100% or absolute support from all the soldiers and officers.”
Mr. Lacson, an alumnus of the Philippine Military Academy and former chief of the National Police, also said, “The AFP (Armed Forces of the Philippines) should be conducting loyalty check by way of counter-intelligence and other built-in mechanisms available to them, even without being directed by the President.”
Senator Gregorio B. Honasan II, for his part, said, “The mandate of the AFP is stay in the center. Loyalty check is a direction….I am not in favor of exposing the strengths and weaknesses of our systems, our institutions to temporary flaws.”
“We should trust all our institutions….They should not do what we did in 1986,” Mr. Honasan also said, referring to the military breakaway in the People Power Revolution in which he took part.
‘GOOD INFORMATION’
But for her part, former Philippine president and present House Speaker Gloria Macapagal-Arroyo on Wednesday said, “You know let me just say, again going from my experience as President, the President usually has access to information that not all of us have access to.”
“So if the President believes that there is a threat, he is working from good information. So we should believe whatever (he says),” the Speaker added.
Opposition groups including the Magdalo party identified with Senator Antonio F. Trillanes IV have criticized Mr. Duterte’s claim of a destabilization plot against him.
Also on Wednesday, the Department of Justice (DOJ) on Wednesday submitted its reply to the Makati City Regional Trial Court (RTC) Branch 148, regarding Mr. Trillanes’s comment on the DoJ’s motion for the issuance of arrest warrant and hold departure order (HDO) against him.
The prosecution said the affidavit submitted by Col. Josefa C. Berbigal is “not accurate, if not downright false,” as she only mentioned that she received Mr. Trillanes’s application form and asked him to read a statement which contained a general admission of guilt.
“She did not categorically state having received a narration of fact by Trillanes of his involvement/participation in the Oakwood Mutiny on July 7, 2003 and the Peninsula Manila Hotel Incident on November 29, 2007, as required in the application form,” the reply read.
The DoJ also said that the affidavit of former defense undersecretary Honorio S. Azcueta — regarding the discussions by the Department of National Defense (DND) Ad Hoc Amnesty Committee on the amnesty applications — was belied by the Records Division of the DND as there were no minutes of the said deliberation.
“As it were and as it is, accused and his witnesses conveniently disregarded this requirement of submission of narration of facts of their involvement in the crimes of coup d’etat and rebellion,” the DoJ said.
For his part, Justice Secretary Menardo I. Guevarra told reporters that the government is not singling out Mr. Trillanes, adding that it is “natural” to start the review of the granting of amnesty with him, in connection with the 2003 Oakwood Mutiny, 2006 Marine Standoff, and 2007 Manila Peninsula Siege.
“We cannot take away that risk that (his accomplices are) found to be deficient or noncompliant with the requirements for the grant of amnesty, then any other person who might have not complied may suffer the same situation of Senator Trillanes. But for now, we are dealing with his particular case so we’re focusing our attention on that (first),” Mr. Guevarra said.
“We’re not saying that the government is picking on him and being selective, it just so happened that he’s the most vocal and he’s the leader of the pack, so to speak. So it was just natural, if not logical, to start with him,” he added.
On Sept. 25, Judge Elmo M. Alameda of Makati RTC Branch 150 issued an arrest warrant against Mr. Trillanes in connection with his rebellion case from the 2007 Manila Peninsula Siege. The Senator, however, posted P200,000 bail the same day.
President Rodrigo R. Duterte on Aug. 31 issued Proclamation No. 572 voiding the amnesty granted to Mr. Trillanes in 2011. — Camille A. Aguinaldo, Vann Marlo M. Villegas, and Charmaine A. Tadalan

SWS: Nearly half undecided on police claims of resistance

By Camille A. Aguinaldo Reporter
NEARLY HALF of Filipinos are undecided on the truthfulness of police claims of resistance (“nanlaban”) by drug suspects, according to a second-quarter survey by the Social Weather Stations.
The noncommissioned Second Quarter 2018 Social Weather Survey showed 47% of respondents saying they are “undecided,” while 26% say the police are not telling the truth (13% definitely not telling the truth, 14% probably not telling the truth, correctly rounded), and 27% say police are telling the truth (17% probably telling the truth, 9% definitely telling the truth, correctly rounded).
The net opinion of the truthfulness of the police slightly improved to net zero, compared to the -1 in September 2017. It was at -20 when SWS first asked the question in December 2016.
The survey also showed that net truthfulness of the police’s nanlaban claims was lowest in Metro Manila at -25, followed by Balance Luzon at -6, Visayas at -4, and Mindanao at +31.
Some 96% of Filipino respondents maintained that drug suspects must be captured alive, a point higher than the 95% recorded in September 2017. Metro Manila was the most dominant with the said opinion, followed by Balance Luzon, Visayas, and Mindanao, the survey also added.
Meanwhile, some 86% said it was important for the police to capture drug suspects alive. This opinion was most expressed in Visayas, followed by Mindanao, Balance Luzon, and Metro Manila.
The June survey also noted that President Rodrigo R. Duterte received a net lower satisfaction rating among those who believe that the police claims were definitely untrue at +3, compared to the +77 net rating among those who believe the police are definitely telling the truth.
The same pattern was found among respondents when asked of their level of satisfaction with the administration in its campaign against illegal drugs. Those who do not believe the police had a +41 net satisfaction rating, while those who believed the police had +77.
The Second Quarter SWS survey was conducted on June 27-30 via face-to-face interviews of 1,200 adults nationwide with sampling error margins of ±3% for national percentages and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao.

Dealing with the food we waste

In this day and age, people tend to buy and consume more than they actually need. Technology, both in production and storage, has allowed us to build up surpluses both in stores and in homes. Take the case of rice. While cheap NFA rice may be in short supply, to the detriment of the poor, Metro Manila stores are flooded with commercial rice. More affluent homes are stocked with grains as well.
In reaction to supply bottlenecks and rising food prices, the government has moved to take out so-called “barriers” to the importation of farm produce, meats, and other agricultural products. This lever pulled deals mainly with supply from abroad. Meantime, the DA has also moved to “import” into Metro Manila surplus farm produce from Mindanao.
I commend both initiatives, which appear to have become necessary to mitigate rising food prices. I am certain there are pros and cons to both efforts, and both will have their share of supporters and critics. But both are short-term moves, more tactical and strategic, and seemingly promotes ensuring supply at whatever cost.
Just to move farm produce from Mindanao to the National Capital Region will cost DA a lot of money. And the initiative is open-ended; there is no certainty as to when farms in Central and Northern Luzon can resume supplying the Luzon market. More than that, the program may not have been originally budgeted for 2018, and this may entail emergency procurement. And we all know how “risky” and “costly” that can be.
As for importing more food, there is also the risk of other things — like illegal drugs — coming along with the farm produce. There were rumors in the past when drugs would allegedly be brought into the country along with imported meat in refrigerated containers. Then there are rice imports, which have been the subject of corruption rumors.
More than these, allowing the entry of imported fish, meat, and other farm produce always leads to issues with local producers and farmers. Moving to protect the interest of consumers is almost always contrary to protecting the interest of farmers. Allowing food industries to import more sugar or substitutes, for instance, always leads to heated arguments between users and producers.
And the most critical factor as to why initiatives like these will always be short term is that farm produce and agricultural products have a limited shelf life. Farm produce are perishable, and unless preserved or stored, supply is also limited by produce life itself. Then supply, whether imported or local, is also subject to seasonality. The weather will always have a say in things.
It is in this line that I hope the government, or even local governments, can consider additional initiatives to help address supply bottlenecks. I believe one way of boosting supply, or at least ensuring sufficiency in supply to a broader market, is to cut down on waste. And, I believe that doing so can go a long way in adequately providing for the needs of both the rich and the poor.
Recall how local governments actually started the initiative to ban plastic bags in supermarkets? Even the ban on the use of plastic utensils and plastic straws is enforced more at the local rather than the national level. In this regard, perhaps there can be local enforcement as well with respect to dealing with excess or surplus produce that cannot be sold by supermarkets.
A 2016 story that appeared in the UK Telegraph, by Helena Horton, narrated how UK supermarkets threw away at least 115,000 tons of “perfectly good food” every year, and how a “food waste” supermarket was opened that year and began working with other supermarkets to put this food to good use.
wasted food
I took note of this UK project initially after hearing a couple of stories regarding food. One story involves a local farmer in Cavite who goes around collecting food wastes from restaurants in his area. He serves the food businesses’ need for waste disposal, but at the same time gathers practically free but clean and safe food for his livestock.
And then there was this other time when I visited a supposed farmers’ market that was selling lettuce at P400 per kilogram, when the supermarket right beside it was selling an entire salad for P300 per kilogram. The farmer brought home his unsold lettuce, and presumably fed it to his pigs. But I am uncertain as to how the supermarket disposed the unsold salad.
My point is, we are wasting food as we are probably just throwing away unsold items. Wasting food has just as much impact on food supply, particularly to the poor, as a shortage. We should deal not only with supply bottlenecks but also unnecessary waste as well. One can only imagine how much unsold food end up in the disposal every day, both from supermarkets and from producers themselves.
The way it works in the UK is that “The Real Junk Food Project” opened its first warehouse in the town of Leeds in 2016, and the warehouse served as a “food waste supermarket.” The poor or “the needy can take food which would otherwise have been thrown in the bin.” The project, to ensure supply, forged deals with chain supermarkets like Sainsbury’s, Morrisons and Ocado. It also works with local cafés, food banks, and caterers.
The Horton story also noted the following: people are expected to pay what they can afford, or can donate their time in volunteering for the project instead; food past expiration date are rechecked if they are still fit for human consumption; and food also get sent to partner cafés and restaurants, which cook them and sell the cooked food also to the needy.
Also, in 2016, France became the first country in the world to ban supermarkets from wasting food. Under a French law passed that year, supermarkets were prohibited from throwing away or disposing food that were nearing their best-before dates. Such food must instead be donated to charities and food banks, where they could be used to produce meals for the poor.
Supermarkets that violated the ban could be fined, and their owners or corporate officers could be jailed. Supermarkets with a footprint of 400 square meters or more are made to sign donation contracts with charities, or face a penalty. Food banks and charities, in turn, were obliged to collect and stock the food in properly hygienic conditions and distribute them. Food industries were also encouraged to give excess products directly to food banks from factories.
I believe similar initiatives can actually be done locally, even initially in places like Makati, Alabang, San Juan, and Quezon City. Of course, safeguards are needed to ensure that those availing themselves of cheap food are actually consuming them and not selling them. Limits can be set. The project can be led by the private sector or local governments themselves.
The local government can take the lead in a “feeding” program that will prioritize the poor as well as seniors. Idle government land or buildings can be turned into temporary stores or weekly “tiangges,” and the logistics of picking up and delivering food can be outsourced to local logistics companies in exchange for local tax breaks.
An option is for big corporations, particularly food companies, can support by making the food project part of their CSR activities. They can sponsor regular food events or food sale, and lend their expertise in using technology to better store and prepare food in affordable manner. Excess food can also be donated as animal feed, while those unfit for consumption can be composted and turned into farm fertilizer.
There are ways of doing these things, if only there is a will to actually do them. An integrated food-farm feed project that focuses on limiting retail waste, and “recycling” food that will otherwise become garbage, can go a long way in providing for the needs particularly of the poor in these uncertain times.
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

Duterte inflation in prices and political insecurity

President Duterte’s government can be described currently as having double inflation in both consumer price index (CPI) and political insecurity index.
His economic managers’ usual and repeated alibi on why the country’s inflation rate is high is mainly because of external factors like high world oil prices and high US interest rates. This is a half-truth. The main reason is the TRAIN law that was implemented starting January this year.
From the monthly data of inflation rate, the January to August 2018 or year-to-date (ytd) average is taken. These Asian economies have complete data until August. Those with incomplete data (Cambodia, Bangladesh, etc.) are not included here (see table).
So while world oil prices and US interest rates increase, five countries have experienced lower inflation this year compared to 2017, between -0.2 (Singapore) to -2.5 (Malaysia) percentage points. Four countries have mild increase of up to 0.5% in 2018 compared to 2017: Japan, Thailand, China and Pakistan.
The Duterte government’s dishonesty in admitting the significant contribution of their TRAIN law — especially the tax hikes of oil products — disables them to realize that part 2 of oil and coal tax hikes this coming January 2019 will create another round of higher inflationary pressure.
The political insecurity index of the Duterte administration can be proxied by the latest Pulse Asia survey on the Approval and Trust ratings of the President. Its Approval rating has declined from 88% in June 2018 to 75% in September 2018 while its Trust rating has also declined by similar figures for the same period.
The consistent persecution and jailing of very vocal opposition legislators — first Senator De Lima and now Senator Trillanes — is one proof of President Duterte’s political insecurity and intolerance. While Sen. Trillanes has posted bail and is free temporarily, he can still go to jail if the administration will find other ways. After all, the coup d’etat charge again confronting him is a non-bailable offense.
They cannot arrest the spiraling inflation — only 2.9% in 2017, 3.4% in January 2018 or first month of TRAIN law, up to 6.4% in August 2018 — so they arrest vocal opposition leaders.
The government’s performance can be depicted in this hypothetical chart.
Consumer Price Index
Instead of aspiring to be in point A, the administration further moves away, outwards to point B where both price index and insecurity index are high.
One important policy that the government can undertake is to reduce VAT from 12% to 8% with very few exempted sectors. There is a concrete and very recent example why this policy can work.
Malaysia abolished its gross sales tax (GST), the equivalent of our VAT, as a result of an election promise in May 2018 fulfilled by PM Mahathir. With GST of 6%, Malaysia inflation rate was 1.4% in April then 1.8% in May 2018. When GST moved from 6% to zero last June, inflation rate significantly declined to 0.8% in June, 0.9% in July, and 0.2% in August. Massive, large-scale price decline across many sectors by the simple abolition of GST.
So President Duterte and his economic team can try the Malaysian model so that it can hopefully move towards point A in the illustration. Cut the VAT rate from 12% to 8% with very few exempted sectors.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers and a Fellow of Stratbase-ADRi.
minimalgovernment@gmail.com.

SC dismisses Peter Lim petition for TRO over DOJ investigation

THE Supreme Court has dismissed the petition of businessman Peter Go Lim seeking a temporary restraining order against Department of Justice (DOJ) resolutions dated March 19 and Aug. 27 ordering that he be investigated.
“…the Court resolves to dismiss the petition for failure to show any grave abuse of discretion in rendering the challenged order and resolution which, on the contrary, appear to be in accord with the facts and the applicable law and jurisprudence,” the resolution dated July 23 read.
The Department of Justice initially dismissed the complaint against Mr. Lim, for inconsistencies in evidence.
But the DOJ in August formally charged him with violation of the Comprehensive Dangerous Drug Act of 2002 for “conspiracy to commit illegal drug trading.”
Makati City Regional Trial Court Branch 65 in August issued a warrant of arrest against Mr. Lim but he has yet to be nabbed.
On Sept.14, Justice Secretary Menardo I. Guevarra disclosed that the government would give a reward worth P500,000 to anyone who will give information to the whereabouts of Mr. Lim, provided that it would lead to his arrest. — Vann Marlo M. Villegas

Zurcaroh’s Golden Buzzer Act

As a professor teaching millennial students, I always want to make sure that my class would have “balanced programming” during our 1 ½ hours of contact time. This means that the whole 1 ½ hours is spent not only on lecturing about the chapter, but also on playing team or individual games, viewing video clips, analyzing case studies, and other student-centered learning activities.
When I first had to teach the class talent management and the role of Human Resources (HR) in strategy, I was stumped on how to simplify the topic — until I saw this America’s Got Talent (AGT) clip in my Facebook newsfeed. The AGT clip was of the performance of Zurcaroh, an Austrian acrobat group, which was so compelling that the show’s host, Tyra Banks, gave it the much-coveted golden buzzer.
I now use Zurcaroh’s act as a metaphor to explain talent management, defined as “getting the right person at the right job at the right time.” The group’s act is also a metaphor for other HR functions such as training and development and performance management. Zurcaroh’s jaw-dropping act was perfectly executed because the right performers were doing the right stunts at the right time after they had brainstormed on their moves and undergone rigorous practice. In short, they managed their “human resources,” in the same way that companies do. As a result, the group earned a golden buzzer for its unique and well-executed performance and a slot in the final round. In other words, the group formulated and implemented a strategy in order to win.
Just like Zurcaroh, companies, in order to achieve profitability and growth — the traditional measures of success — must come up with strategies, including HR strategies, that add value to them instead of just simply copying the industry’s best practices.
Noe, Hollenbeck, Gerhart, and Wright, authors of the textbook Fundamentals of Human Resource Management, point out that when it comes to strategy making, HR can be viewed in four ways: administrative, or doing day-to-day activities; two-way, with HR providing inputs to strategy formation and implementation; one-way, with HR simply implementing what it is told to do; and integrative, with HR being involved in every step, from strategy creation to strategy evaluation. They suggest that firms be integrative in their strategy formulation and evaluation so that HR can customize its practices to benefit not just the shareholders of the firm but also every employee in the organization.
Vivien Supangco of the University of the Philippines studied the sales performance, operating profits, new markets/products, and human resources of 36 Metro Manila-based organizations, and concluded, like Noe et al., that having HR play a role in strategic planning and corporate governance increases a company’s likelihood of success.
Because HR personnel manage the most important resource of the firm, they should participate in management decisions that impact employees. HR personnel, using HR analytics, can provide employee data, knowledge of labor laws, and their skill in succession planning; without HR, firms might do whatever they want, such as letting go of 100 employees without realizing or caring about the consequences to these employees and their families. Therefore, HR has a stake in the strategies of the firm.
But success should be measured not only in terms of profit and market share, but also in terms of how well an organization develops its people. Employees deserve to be valued and given dignity through work. Article 23 of the UN Universal Declaration of Human Rights, of which the Philippines is a signatory, states:
Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.
Everyone, without any discrimination, has the right to equal pay for equal work.
Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.
Everyone has the right to form and to join trade unions for the protection of his interests.
Firms must adhere to this commitment. However, it will be impossible if owners are in business just for profit. In the end, just like the Zurcaroh acrobat performers, managers, with the help of HR, must do a “balancing act” to make sure that employees, because they are given dignity in the workplace, are positively motivated in producing and delivering jaw-dropping products or services to their customers.
 
Alvin Neil A. Gutierrez is a DBA student of De La Salle University. He earned his Master in Human Resource Management degree as an AUSAID scholar from The University of Sydney Business School. He is also an Assistant Professor of the Ramon V. Del Rosario College of Business, where he teaches Strategic Human Resource Management and Corporate Social Responsibility and Governance.
alvin.gutierrez@dlsu.edu.ph

Lagman challenges dismissal of impeachment complaint vs SC justices

By Charmaine A. Tadalan, Reporter
REPRESENTATIVE Edcel C. Lagman of the first district of Albay challenged the validity of the House Justice Committee’s decision to dismiss the consolidated impeachment complaints against Chief Justice Teresita Leonardo-de Castro and six other Supreme Court Associate Justices for lack of votes.
With 22 affirmative votes and zero negative, the Committee on Tuesday formally adopted the committee report, carrying the decision to dismiss the complaints filed by some members of the opposition bloc Magnificent 7.
“The aforesaid recorded 22 votes did not constitute an absolute majority of 35 votes out of a total of 68 members, 34 regular members and 34 ex-officio members, as required under Section 8 of Rule III of the House Rules of Procedure in Impeachment Proceedings,” Mr. Lagman told Panel Chair Salvador C. Leachon of the first district of Oriental Mindoro in a letter, dated Sept. 26.
In response, Mr. Leachon said the absolute majority of the Committee is based on the total number of regular members.
“Our total membership is 33 and not 68 as he claimed,” he told reporters in a phone message.
“So absolute majority is 17 and since the votes approving the committee report was 22, the proceedings adopting the report was perfectly legal and binding,” he also said.
The panel chair noted the misunderstanding had already been cleared with the complainant. “Cong Lagman has been alerted. He’s just misinformed,” Mr. Leachon said.
The Committee on Sept. 11 dismissed the complaints after finding it “insufficient in substance.”
The impeachment complaints stem from the seven SC justices’ decision to grant the quo warranto petition that ousted Ma. Lourdes P.A. Sereno as Chief Justice.