Facebook Instagram Linkedin X Youtube
Home Blog Page 12682

Urdaneta bypass road ready by 2019

THE 7.2-kilometer Urdaneta City bypass is targeted for opening by next year with work on the last two of six phases now in full swing, according to the Department of Public Works and Highways (DPWH). The P1.6 billion four-lane diversion road is seen to ease traffic congestion at the city proper where most government and business centers are located. Four inter-regional road systems will also be connected to the bypass, namely: Manila North Road, Urdaneta-Dagupan Road, Urdaneta-Manaoag Road, and Tarlac-Pangasinan-La Union Expressway. DPWH Region I Director Ronnel M. Tan said in a statement, “More than the faster transport of goods and services from Urdaneta City proper to barangays, the bypass road would also attract various business establishments that would generate more livelihood opportunities and help increase economic growth in the province.” Once completed, travel time from the town of Villasis to Binalonan, which usually takes an hour via the Maharlika Highway, is expected to be cut by 50%.

Passi sugarcane workers to appeal dismissal case

WORKERS OF the Central Azucarera de San Antonio (CASA), Inc. in Passi City, Iloilo who were dismissed for staging a strike have lost their case before the National Labor Relations Commission-Western Visayas (NLRC-6). The NLRC ruled that the strike was illegal and the company’s dismissal of 50 sugarcane workers who participated was within the bounds of the law. The CASA Sugar Mill Workers Union’s lawyer, Tranquilino R. Gale, said they will file an appeal to the NLRC commissioners. “They (NLRC-6) have found that the strike was illegal and there were some illegal actions committed during the strike. So the management or the company has the right to dismiss them,” Mr, Gale said. The case stemmed from the complaint of 140 sugar planters in 2017 against CASA’s alleged failure to release their benefits as well as increase their salaries. The company and the union underwent mediation with the National Conciliation and Mediation Board, but failed to reach an amicable settlement. “The company refused to bargain anymore and claimed they will not submit a counterproposal,” Mr. Gale said. — Louine Hope U. Conserva

NPA member killed in operation vs alleged election-related extortion

A MEMBER of the communist New People’s Army (NPA) was killed in a clash with troops of the 8th Infantry Battalion in Malitbog, Bukidnon last May 4. The operation reportedly stemmed from reports that the NPA were demanding payments for a Permit to Campaign (PTC) and Permit to Win (PTW) from barangay and Sangguniang Kabataan (SK) candidates. “We will establish grounds and verify on the reports received from concerned populace with regards to NPA terrorists asking PTC and PTW. Meanwhile, we affirm that our soldiers will continue to uphold the peaceful undertaking of the synchronized Barangay and SK elections. We will be extra vigilant to avoid any chaos that the NPA terrorists may do to disrupt the election,” Brigadier General Eric C. Vinoya, commander of 403rd Infantry Brigade, said. — Minde Nyl R. dela Cruz

Nokia beefs up Mindanao marketing

HMD GLOBAL, a Finnish company that distributes Nokia phones in the Philippines, is beefing up its marketing campaign in the provinces with a road show of its Nokia Mobile NewSeum, which made a stop in Davao City from April 27 to May 5. Nokia’s new mobile phone models were also launched and will be available by end-May. “After my visit in Davao last year we got the sense that it can work here, so we wanted to have something new for you when we get back,” HMD Global Philippines Country Manager Shannon Mead said in an interview during the launch of the NewSeum, an interactive exhibit of old and new Nokia phones. Mr. Mead said the event signals Nokia’s plan to expand its presence in Mindanao, where there is already a “loyal and strong market base.” He added, “As a key market, we are committed to building and strengthening our presence in Davao. We are optimistic that with the new generation of Nokia Android smartphones and our classic but highly upgraded feature phone, the Davaoenos will get the best mobile experience across all price points.” — Carmencita A. Carillo

Half drop out of drug rehab program in Davao City

ALMOST HALF or 1,826 of the 3,895 drug users who submitted themselves for rehabilitation under the Community-based Rehabilitation and Aftercare Program failed to complete the 24-month recovery track. Connie M. Domag, City Anti-Drug Abuse Council-Rehabilitation Program Research and Data Management Director, said the high drop-out rate could be attributed to political and financial support at the barangay level. “Many of them need logistical support as they undergo the program,” she said. Many villages, particularly those in the hinterlands, are not willing to set aside funds to support the program even if the city council has urged them to provide assistance, Ms. Domag said. Senior Inspector Maria Teresita P. Gaspan, city police spokesperson, said those who enrolled in the program were among the estimated 11,500 who surrendered to the police when the campaign against illegal drugs was intensified under the Duterte administration. Ms. Gaspan said many of those who quit the program and the surrenderers who did not join have eventually returned to their illegal activities and some have been arrested. She said the local police is now looking at alternative strategies to sustain the program with more participation from schools and other community members. — Carmelito Q. Francisco

Nationwide Round-Up

Anti-corruption commission says DoT-Tulfo case not assigned to them

MALACAÑANG DID not assign the investigation on the P60-million advertising contract of the Department of Tourism (DoT) with the Tulfo brothers’ show on PTV 4 to the Presidential Anti-Corruption Commission (PACC), according to PACC Commissioner and spokesperson Greco Antonious Beda B. Belgica. “It was not given to us. We don’t know who is doing it,” Mr. Belgica told BusinessWorld in a text message on Sunday, May 6. He added, however, that the agency can do a “motu proprio” [investigation]. The PACC was created by President Rodrigo R. Duterte last year to probe graft and corruption against all his appointees in the Executive Branch. The Commission on Audit (CoA), in a report released last week, flagged DoT’s placement of P60 million worth of advertisements in the show, produced by Ben T. Tulfo’s Bitag Media Unlimited, Inc. The DoT is headed by the Tulfo brothers’ sister, Secretary Wanda Tulfo-Teo. In his press briefing at the Presidential Guest House in Davao City on Saturday, April 5, Presidential Spokesperson Harry L. Roque, Jr. said the matter is being investigated already. Asked whether the President still trusts the officials involved, Mr. Roque said: “Well, I think the President, unless he fires a Secretary, has trust and confidence in them. But I think you know when there are controversies, he will investigate and he will make decisions in full as they may be. I think he already has a track record — I think the people can trust the President that he will do the right thing.” — Arjay L. Balinbin

Sereno accuses OSG of forum shopping with quo warranto case

CHIEF JUSTICE Maria Lourdes P.A. Sereno has accused the Office of the Solicitor General (OSG) of “willful and deliberate forum-shopping” in a 24-page supplemental memorandum submitted to the Supreme Court on Friday, May 4, and released to media on Sunday. “Those behind the impeachment before Congress and the Petition before this Honorable Court are one and the same,” it read, referring to the impeachment complaint against Ms. Sereno for allegedly not disclosing her complete wealth and the separate quo warranto petition seeking to void her appointment as Chief Justice for failing to submit all her Statements of Assets and Liabilities as a requirement for the post. “Forum shopping is a party’s action looking for a court or judge that is deemed likely to render a favorable result. It is a prohibited malpractice and condemned as trifling with the courts and their processes,” Ms. Sereno’s spokespersons explained in a press statement. “It is clear that the parties involved in this case ‘represent the same interests,’ if not substantially the same interest, as those involved in the impeachment proceeding initiated and pending before Congress,” the petition pointed out. The OSG did not respond when reached for comment. — Dane Angelo M. Enerio

3 in military firearms graft case cleared

ANTI-GRAFT COURT Sandiganbayan has cleared two military officers of graft charges over the 1997 purchase of defective firearms after the prosecution’s failure “to prove their guilt beyond reasonable doubt.” In a decision dated April 27, the court’s second division cleared Major Jose L. Barao Jr. and Captain Henry G. Valeroso, along with private respondent Victorino R. Floro, then president of Floro International Corporation (FIC), which sold 75 units of cal. 9mm MK9 sub-machine guns worth P1.5 million to the Armed Forces of the Philippines. Another respondent, Colonel Artemio C. Cacal, was earlier cleared after he passed away. Sandiganbayan ruled that the prosecution failed to prove the “undue injury” caused by the selling of the firearms and giving Mr. Floro “unwarranted benefits,” which are the grounds for violation of Section 3(e) of Republic Act (RA) 3019 or the Anti-Graft and Corrupt Practices Act. — Minde Nyl R. dela Cruz

DoJ to appeal dismissal of charges in P6.4-billion shabu shipment

THE DEPARTMENT of Justice (DoJ) will file a motion for reconsideration on the Valenzuela City Regional Trial Court (RTC) Branch 284’s decision to clear nine suspects allegedly involved in the shipment of shabu (methampethamine) from China worth P6.4 billion, Justice Secretary Menardo I. Guevarra told reporters on Sunday. RTC Presiding Judge Arthur B. Melicor, in an order dated April 23, dismissed the case against the eight accused, citing that state prosecutors conducted “forum shopping” when they filed separate charges for importation of illegal drugs in a Manila court and another Valenzuelan court, with the latter being dismissed for lack of jurisdiction as the alleged crime was committed in Manila. Mr. Guevarra, however, claimed, “there (was) no forum shopping involved because transporting of illegal drugs is a distinct act from importation.” He explained, ”The act of importation ends at the customs area. Transporting of drugs to Valenzuela is a separate act punishable under a different provision of the dangerous drugs law.” Mr. Guevarra also pointed out that “the case for illegal importation of dangerous drugs against the same accused is very much alive in RTC Manila.” The eight accused are Mark G. Taguba II, Teejay A. Marcellana, Chen Ju Long, Li Guang Feng, Dong Yi Shen, Eirene A. Tatad, Chen I-Min, Jhu Ming Jyun, and Chen Rong Huan. — Dane Angelo M. Enerio

Tyranny of the Minority?

The “tyranny of the minority” is a term not often used. In democracies such as ours, primacy in decision making is given to the majority. But the power of the minority can be very real. Whether by formal or informal political structures, it is the reason that obviously beneficial reforms — such as Reproductive Health or Freedom of Information — can be blocked or at best take decades to pass. It can cause presidents to be elected despite not having a popular mandate.
TRAIN 2, as conceived, is a reform that will reshape our fiscal structures for the better. But like many landmark reforms, it can easily fall prey to the tyranny of the minority.
One of the main features of the second package of tax reform measures is a reduction of the corporate income tax (CIT). The rationale of such a measure is to boost our competitiveness, especially in the context of ASEAN.
Most of our neighbors have each gradually reduced their statutory corporate tax rates in the recent years. As a result, the Philippines has the highest corporate tax in the region at 30%. Singapore has the lowest tax rate in the region at 17% while our often-regarded-counterpart in Vietnam has lowered their rate to 20%.
ASEAN
A lower tax rate lowers the cost of doing business. Firms and its stockholders can enjoy greater returns for every peso invested. This theoretically translates to more jobs and higher wages for employees. However, things are not as simple as a reduction in the CIT benefitting all.
Lowering the corporate income tax rate would also imply a lower tax base for government. A lower tax base means there would be less available resources for government to utilize for social services and infrastructure. It would have to finance its spending through borrowing, which would raise interest rates and therefore crowd out private investment.
While others would argue that a lower tax may not necessarily lead to lower revenue due to the multiplier effect of the boost in businesses and job generation, historical data shows that a lowering of the corporate income tax rate immediately leads to a dip in our tax effort and an increase in budget deficit.
Indeed, when the CIT rate was decreased from 35% to 30% in 2009, the tax-revenue-to-GDP ratio decreased from 13.59% in 2008 to 12.23% while budget-deficit-to-GDP ratio went up from 0.88% in 2008 to 3.72%.
This is an important part of the policy calculus as our tax base is already comparatively low, despite our high tax rate.
Action for Economic Reforms’ initial estimates reveal that if the corporate income tax rate is reduced gradually to 25% in 2023, we would be forgoing nearly P158 billion in tax revenues. To be clear, while a CIT reduction might be a worthwhile endeavor, the government does need the fiscal space to pursue this.
But a greater consideration still is the fairness aspect.
Even though a CIT reduction might theoretically benefit all, our current fiscal incentive structure tends to concentrate benefits to the richest of these firms.
In 2016, there were an estimated 915,726 enterprises in the country. Of that number just roughly 5,000 are enjoying fiscal incentives through tax holidays and preferential tax rates.
The way our fiscal incentives are currently awarded is poorly designed, poorly targeted, and lacking transparency. Government should use incentives to encourage productive investment, and rationalizing our fiscal incentives regime — better targeting, better design, and greater transparency, would be hitting two birds with one stone. It would award incentives to the most deserving firms and promote more productive and equitable investments. At the same time, it would create the fiscal space for the government to pursue a reduction in the CIT.
Some sectors are certainly aware of this and would actively prevent the reform. The housing sector is one that receives generous incentives with the rationale of addressing the country’s housing needs.
Unfortunately, the incentives are structured in a manner that does not address the supply for those who need it the most — low-income families in need of quality but affordable housing. Instead, some housing firms do enjoy the incentives while catering to the upper-middle income market.
Given this, the said sector has one key person in the Senate, representing their interests. A major reform which would benefit over 900,000 businesses could very well be forgone as several members of a powerful minority scramble to protect their own undeserved privilege. But we can still give them the benefit of the doubt.
 
AJ Montesa is a member of the Action for Economic Reforms’ tax team.

Is the PCC a facilitator or a hindrance to business competition?

Even before the various competition bills in Congress ultimately became the Philippine Competition Act (PCA) of 2015 or RA 10667, I have been asking myself this question.
After all, I have observed that the main creator of monopolies and oligopolies is the government itself through constitutional restrictions on public utilities and creation of “natural monopolies” like electricity transmission and distribution, water distribution, which, in turn, require congressional franchises.
Other monopolies or oligopolies are created by various agencies, like airline routes (CAB franchise), shipping routes (MARINA franchise), telecommunications (NTC franchise or permit), jeepney and bus line route (LTFRB franchise), tricycle route (LGU franchise).
So the basic question would be: What can the Philippine Competition Commission (PCC) do to limit or curtail the granting of such state-created monopolies and oligopolies?
Last week, I interviewed PCC Chairman Arsenio Balisacan in his office. Sir Arsi is a friend and was my former teacher in the ’90s at the graduate program of UP School of Economics on the subject of Development Economics. [The discussion between Mssrs. Oplas and Balisacan, which covered several topics, will be uploaded on BusinessWorld’s YouTube channel soon. — Ed.]
My opening question to him was a light one, “Do many people mistake the PCC with a racing or sports commission?” He smiled and answered that it seems to be a common misconception for many people especially in non-urban areas, they ask what sports competition the PCC is promoting.
The confusion may be understandable as there are 16 Commissions under the Office of the President alone. These are the Commissions on: Climate Change (CCC), Filipinos Overseas (CFO), Filipino Language (CFL), Higher Education (CHED), Anti-Poverty (NAPC), Culture (NCCP), History (NHCP), Indigenous Peoples (NCIP), Muslim Filipinos (NCMF), Pasig River (PRRC), Women (PCM), Racing (PRC), Sports (PSC), Urban Poor (PCUP), Youth (NYC), and the PCC.
I checked the latest report of the World Economic Forum (WEF), the Global Competitiveness Report (GCR) 2017-2018, to see how competitive the Philippine economy is and by extension, the domestic private businesses, compared to its neighbors in East Asia.
Out of 137 countries and economies covered, the Philippines ranked 56th overall. And of the 12 pillars of the GCR, the Philippines scored high in pillar #2 Macroeconomic environment (22nd) and pillar #10 Market size (27th).
But the country scored very low in three pillars: #1 Institutions (Irregular payments and bribes, Favoritism in decisions of government officials, Burden of government regulations, Reliability of police services…); #2 Infrastructure (roads, railroads, ports, air transport,…) and #6 Goods Market Efficiency (Extent of market dominance, Effectiveness of anti-monopoly policy, Number of procedures to start a business, Time to start a business, Burden of customs procedures), (see table).
Global Competitiveness Report
There is a direct relationship between a competitive economy and its prosperity, and given the relative smallness of the Philippine economy, what seems to be “big” corporations domestically can be small or medium-size compared to the corporations in our East Asian neighbors.
The PCC checks and prohibits three major acts and behavior: (1) Anti-competitive agreements like price fixing/collusion, bid rigging, output limitations, and market sharing; (2) Abuse of dominant position and market power like predatory pricing, discriminatory pricing, exploitative behavior towards consumers and competitors, and limiting production, markets or technological development; and (3) Mergers and acquisitions (M&A) that restrict or lessen competition in the market.
These point to two important issues.
One, the PCC is concerned only with behaviors of existing competing players but does not cover behaviors of state-created monopolies.
And two, many of those behaviors rendered “anti-competitive” are generally short-term and never long-term, so the imposition of penalties may be a question mark.
Take price discrimination or “price differentiation” and “market segmentation” in economics. This is perfectly normal in market competition as the supplier is optimizing revenues from customers with different needs and different budget or resources. Thus, higher prices are set for those deemed wealthy and lower prices for those financially struggling.
In price fixing/collusion, players here may be digging their own graves as they antagonize customers and invite new players that can quickly provide the goods and services at lower prices. If this happens, the collusion can quickly break up and the old players would try to secure their previous market share eaten by the new player/s.
Competition requires innovation, lots of it in terms of product and service quality, variety, marketing and pricing. Player X’s prices compared to its competitors would look “predatory” yesterday, “collusive” today, and “excessive” tomorrow and these are all fine. Those prices can roller coaster at temporary and short-term durations. New players would tend to give low introductory prices to attract many new customers while innovators would tend to give high prices to recoup their high investments in product R&D, consumers survey, and marketing/promotions.
According to the WEF Executive Opinion Survey 2017, the “Most problematic factors for doing business” in the Philippines are: (1) Inefficient government bureaucracy, (2) Inadequate supply of infrastructure, (3) Corruption, (4) Tax regulations, (5) Tax rates, and (6) Policy instability.
So, is the PCC a facilitator or hindrance to overall business competition in the Philippines?
For me, it’s a tie.
The PCC can be a potential hindrance because its long list of prohibitive acts can be additional deterrent to potential players that are already wary of the corrupt bureaucracy, government-created monopolies, poor infrastructure, high tax rates, and policy instabilities.
But it also has two important functions that can facilitate competition.
One, it gives information to potential and incoming players on how they will be treated in case existing players, foreign and local, will charge and accuse them of “anti-competitive” behavior. And two, it can coordinate with other sectoral regulatory agencies and temper their itchiness to regulate, restrict and prohibit as PCC has the overall view of the degree of competition in the country.
 
Bienvenido S. Oplas, Jr. is President of Minimal Government Thinkers, a member-institute of Economic Freedom Network (EFN) Asia.
minimalgovernment@gmail.com.

Ruminations on US-Philippine relations

Last week, I attended a forum on the state of Philippine-American relations with American Ambassador H.E. Sung Y. Kim addressing the crowd.
Sponsored by the Asian Society, I expected the talk to be chock-full of revelations and fresh insights considering President Duterte’s many tirades against the United States. We still recall how the President threatened to “break-up” with Uncle Sam in favor of forming a tri-axis of power with China and Russia. On another occasion, he referred to president Obama as a “son of a whore” following his criticisms of human rights violations.
To everyone’s chagrin, the American envoy offered no great reveal nor new insights. He stayed on the safe zone all throughout, stressing that personalities do not dictate relationships between nations.
In the case of America and the Philippines, ours lay on the foundation of our shared values, shared history and shared interests. Besides, the ambassador reiterated, rhetoric is one thing — but public policy is another. As far as diplomatic policies are concerned, the relationship between both nations have never been stronger.
This relationship is best exemplified in the numerous treaties that bind us, said the Ambassador.
Among them is the 1951 Mutual Defense Treaty, the 2014 Enhanced Defense Cooperation Agreement and the Partnership for (economic) Growth Initiative. Various educational programs further strengthen our bond including the Fulbright Scholarship Program and the Young Southeast Asian Leadership Initiative.
Even more than treaties between governments, however, ties among people and businesses are what really solidify a relationship, emphasized the Ambassador. There are 4 million Filipinos living the US who remit $6.4 billion to the homeland every year. On the other hand, there are approximately 400,000 Americans who call the Philippines their home. In terms of trade, roughly $14 billion worth of goods flow between our countries every year of which the Philippines has a trade surplus of roughly $2 billion.
American companies casts a wide shadow in Philippine business. Texas Instruments is the country’s largest exporter, Convergys is the largest employer and Chevron/Caltex is one of the largest taxpayers.
As Ambassador Kim spoke about the close relations we share, I could not help but ruminate about the other side of the proverbial coin. I asked myself, where does President Duterte’s deep resentment stem from? Why does the anti-American movement fester among us despite having been freed from the eagle’s talons for more than 72 years?
I realized that the grudges are deep since they involve historical events that have profoundly affected the nation.
GRUDGES AND REGRETS
Don’t get me wrong… I appreciate America and all that she has done to contribute to building our nation.
But let’s be honest — America is for America.
Her intervention in our affairs have always been motivated not by sheer love of the Filipino but rather, to forward its own economic and political agenda.
Let’s go back to the faithful months of April to August, 1898. American forces fought side by side Filipino revolutionaries, supposedly to free the Philippines from Spanish stronghold. Filipinos naively believed that this was a benevolent act by the US to help us gain independence. Little did we know, the Americans fought to release us from Spain only to take us for its own. The Treaty of Paris sealed the deal whereby the Philippines, along with Puerto Rico and Cuba, were sold by Spain to the US in a buy one, take three deal — all for a “grand” amount of $20 million. The Filipino was robbed of the independence he fought tooth and nail for. To many, it was seen as a betrayal.
The Taft Commission took effect in March 1900 and the Americans gave itself executive, legislative, and judicial powers over the land.
In the 14 years that followed, more than 34,000 Filipino independistas and half a million civilians were annihilated by heavily-armed American soldiers as the Filipino continued to fight for his independence. Only 4,200 Americans perished in the struggle.
The Americans held the country for 48 years and acted as judge and jury as to when we were “ready” for independence.
Up until 1946, the Philippines was given independence in trickles through the gradual ceding of administrative powers. The 1916 Jones Law paved the way for the creation of the Philippine Senate and Congress. The Tydings McDuffy Law of 1934 set a 10-year period in which the Philippines was to be truly self-governing. In 1935, Manuel L. Quezon and Sergio Osmeña were elected the Commonwealth president and vice-president, respectively, but America still controlled all matters relating to foreign policy and finances.
Upon granting independence to the Philippine in 1946, the Americans reserved their right to enjoy unprecedented access to our economic resources through the Bell Trade Act. The act gave parity rights (or equal rights as Filipinos) to Americans citizens and corporations in as far as the use and extraction of Philippine natural resources were concerned. The Act also declared a free trade agreement between the two countries despite the Philippines being at a huge disadvantage.
Filipino ratification of the Bell Trade Act was made a condition for the release of the $800 million World War II rebuilding fund. It was economic blackmail.
During the American-Japanese War, 260,000 Filipinos fought and died under the American flag. But despite President Franklin Roosevelt’s promise of full veteran’s benefits for the Philippine Army, our veterans were denied disability pay, US immigration rights, and other benefits. The Filipinos veterans were the only ones denied military benefits among 66 US allies across the globe.
In as far as our national identity is concerned, America systematically obliterated the language, customs, and traditions that we inherited from Spain. Worse, they vilified everything that was of Spanish origin despite it being part and parcel of the Filipino psyche. The result was a generation of Filipinos with a convoluted sense of identity. Decades after the American era, the Filipino still struggles with conservative Catholicism and liberal hedonism.
A tipsy participant in the forum was emboldened to ask the Ambassador why Filipinos are not granted visa free entry to the US while Korea and many other emerging nations enjoy the privilege. It was an off-the-cuff question that many wanted to ask but were too embarrassed to.
We all know that Filipinos are made to undergo dehumanizing, embarrassing, and debasing conditions just to obtain a visa. The fact that America designed it this way stings acerbically considering it has freely helped itself to our natural resources for nearly a century. A visa free entry is the least it can offer after all it has taken.
Ambassador Kim replied by saying that the visa requirement among Filipinos is more a security issue than it is an economic one. Still, I maintain, America owes us this much.
GRATEFUL
Like I said earlier, I am grateful to America for all she has done to build our nation.
Unbeknownst to many, America is responsible for establishing most of our public institutions — institutions vital to becoming a self-governing republic. Moving forward, the writing on the wall is clear — the next thirty years will be a tumultuous one what with China rising as an economic superpower with ambitions to spread its territory beyond its lawful domain. China is the biggest bully of the global village and it grabs what it wants simply because it can. China ignores the rule of law and bribes its way with sweet infrastructure deals to get what it wants.
In the wake of China’s creeping invasion, the US will again play an important role in Southeast Asia. It must do so if only to preserve freedom of navigation and passage in the West Philippine Sea. This is vital for America if it is to maintain its economic and military sway over the globe. No doubt, we will be fighting side by side again.
The epoch of Philippine-American relations and our love-hate relationship will continue as we face the village bully together. Our story is far from over.
Andrew J. Masigan is an economist.

Expectations on contractualization

On Labor Day, May 1, President Duterte finally released Executive Order 51 stopping illegal contractualization, as he warned firms involved in the practice that their days were “numbered (ABS-CBN News, May 2, 2018).” The President added that he has ordered the Department of Labor to “submit to my office a list of all the companies engaged in or suspected to be engaged in labor-only contracting (Ibid.).”
But the labor groups were not happy.
They complained that the version of the EO that prevailed was the one submitted by the employers’ groups and the Department of Trade and Industry.
In their version of the EO, the labor groups wanted the inclusion of a provision stating that “direct hiring of the employee by the principal employer shall be the general norm in employment relations… (with) direct hiring meaning that all jobs should be presumed regular jobs; employees go through a probationary period and after 6 months of probationary period, they should be hired as regular employees, Akbayan Party-list Rep. Tom Villarin said on Karen Davila’s Headstart (ANC, May 4, 2018).
Wasn’t that, exactly, the campaign promise?
President Rodrigo Duterte’s newly issued Executive Order against “illegal” contractualization merely recycles existing laws and issuances that do not in any way mandate the regularization of all workers, according to the Gabriela partylist (http://metromanila.politics.com.ph, May 1, 2018). The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said that Duterte has made no changes and has merely maintained the status quo, spokesperson Alan Tanjusay said on Unang Balita (GMA News, May 2, 2018).
Based on the 2016 Integrated Survey on Labor and Employment, there were 1.19 million non-regular workers in the country, including probationary, casual, contractual/project-based and seasonal workers (Cebu Daily News, May 2, 2018). One million contractual hires of a total work force of 44 million, 94.7% of whom are employed (albeit 18% underemployed) — that is about 2.7% unhappy workers, or to be exact, workers who could be happier, according to their labor leaders.
For his part, Leyte Rep. Vicente Veloso, a retired Court of Appeals justice, explained that banning all forms of contractualization is in violation of Section 3, Article XIII of the 1987 Constitution, which recognizes the rights of both employees and employers. (Manila Bulletin [MB], Jan 30, 2018).
When he was newly appointed, Department of Labor and Employment (DoLE) Secretary Silvestre Bello III (Justice Secretary in Corazon Aquino’s presidency and Solicitor General in Fidel Ramos’s term) said he was considering requiring all companies in the Philippines to regularize at least 80% of their employees. “I will do that. Because that is the first marching order of the President (Duterte) to me,” Bello promised (“Timeline: Duterte’s promise to abolish endo,” Rappler, May 1, 2018).
The labor groups wanted full banning of contractualization, as promised by Duterte. Through 2017, labor, management and government held tripartite talks on what to do. Bello pointed out that for labor contractualization to be completely banned, Congress needed to amend laws. Prohibition of all forms of contractualization is beyond the powers of the Secretary of Labor. DoLE can only regulate contracting and subcontracting,” he said (Ibid.). Major labor unions Kilusang Mayo Uno (KMU) and TUCP joined forces to draft an executive order (EO) as an alternative to Bello’s DO 174. Meantime, DoLE received an additional P15 million to hire more labor law compliance officers, which will help the government’s campaign against labor-only contracting.
The focus of Bello has since been against labor-only contracting, which is really only what is illegal.
In its year-end report, DoLE says it regularized at least 125,000 of the 200,000 contractual workers it had targeted to regularize for 2017. Still too little of the estimated 1.3 million contractual employees in the country, Rappler says (Ibid.).
But both Congress and the Senate are not saying anything new about the plight of contractual workers, which situation is allowed but protected under the Constitution and in the Labor Code — precise provisions just must be implemented and regulated — Sec. Bello knows that, for sure, and for sure he must have reminded President Duterte not once. Still, Mr. Duterte could not resist the opportunity for bragging points on Labor Day to claim “an end to Endo,” while deftly hedging on his limitations vis-à-vis Congress to actually outlaw contractualization (when they cannot, without amending the Constitution and the Labor Code).
What the double-talk on contractualization has done is to galvanize and unify labor against management, and now, ironically against the government. Or is it just the now-emasculated unions seeking reinvigorated recognition? Sec. Bello has been known for all his political and legal career to be a defender of labor and now he is caught in between the many interested publics, including the confused onlookers-for the common good. The fact of life is that time has moved by rapid speed of thought in the age of technology and near-perfect communication: the new economics of human resources has changed radically in the now variedly-canted imbalance of supply and demand. Perhaps labor has re-defined the meaning of “security of tenure,” preferring their individual option to stay or leave a job rather than cling to the one-sided obligation of the employer to keep them, pay them retirement — which the in-demand, well-paid can actually save for, with no fears for “non-compete” separation clauses in employment contracts. Perhaps business process outsourcing (BPO) workers: 450,000 and overseas Filipino workers (OFW): 2.3 million (as of PSA Sept. 2017) live this kind of attitude towards work.
Best for government to stop promising and bragging — and raising expectations of workers on an unreachable total ban on contractualization. DoLE and government regulators must just do their work based on provisions of current laws and regulations.
 
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
ahcylagan@yahoo.com

Wright 3-pointer tows Phoenix over Magnolia

By Michael Angelo S. Murillo
Senior Reporter
THE Phoenix Fuel Masters notched their second win in the Philippine Basketball Association (PBA) Commissioner’s Cup in dagger fashion, beating the debuting Magnolia Hotshots Pambansang Manok, 89-87, on Sunday at the Mall of Asia Arena.
Trailed for much of the contest, Phoenix showed tremendous grit and determination to keep coming back and hit the key baskets down the stretch to pull the rug from under Magnolia.
The Hotshots had it steady to begin the contest, topping the opening frame, 24-17, before holding a 10-point cushion by the halftime break, 45-35.
Magnolia continued to hold sway to begin the third canto as import Vernon Macklin and Paul Lee led their team to a 17-11 blast in the first six minutes to stretch their lead to 16 points, 62-46.
Phoenix though would claw its way back with Matthew Wright leading.
The Fuel Masters narrowed their deficit to 10 points, 70-60, by the 1:15 mark, cutting it further to seven, 70-63, heading into the payoff quarter.
Phoenix opened the fourth quarter with four quick points to slice Magnolia’s lead some more to 70-67.
The Hotshots were quick to stop the bleeding, outscoring their opponents,12-6, to create added separation, 82-73, with seven minutes left on the clock.
But Phoenix would continue to challenge Magnolia, coming to within a point, 84-83, as the match hit the final two and a half minutes.
Import James White completed their comeback as he gave the lead to Phoenix, 85-84, with 1:59 to go.
Ian Sangalang answered for Magnolia, 86-85, before Mr. Lee added a free throw to make it 87-85 with 15 ticks to go.
Given a window to salvage a victory, the Fuel Masters took advantage of it.
Off a timeout, Phoenix set up a play that gave Mr. Wright a chance to make things happen.
The Gilas Pilipinas member pulled back for a three-pointer, which he drained with 3.2 seconds to go, to give his team the lead, 88-87.
A free throw by Mr. Wright after off a technical foul charged to Magnolia for calling an excessive timeout sealed the victory for Phoenix.
Messrs. Wright and White each had 19 points for Phoenix while Willie Wilson added 17.
Mr. Macklin, meanwhile, had 25 points for Magnolia with Mr. Lee adding 20 points.
“It was a lucky shot but we will take it. We came out flat to start the game and good thing we were able recover. This is a big win for us heading to our next game.
Phoenix (2-1) next plays on Friday, May 11, against the NLEX Road Warriors while Magnolia (0-1) returns to action on Saturday, May 12, versus the GlobalPort Batang Pier.

Petron Blaze Spikers back on pinnacle of Grand Prix

THE Petron Blaze Spikers completed their return to the top of the Philippine Superliga (PSL) Grand Prix after exacting payback on erstwhile champions F2 Logistics Cargo Movers in their tightly fought best-of-three final series.
Winning in four sets, 25-19, 25-20, 22-25 and 25-18, in their sudden-death Game Three on Saturday, May 5, Petron got its hands on the Grand Prix trophy anew, the first time since 2014, and exorcised the ghost of its finals failure last season when it blew a 1-0 series lead and eventually lost to F2 Logistics in three games.
The championship conquest was a culmination for the Blaze Spikers of what was a tournament marked by bumps along the away.
One such obstacle was their sudden change of import as the knockout round opened after original reinforcement Hillary Hurley went down with an ankle injury.
In came Katherine Bell, who joined forces with Lindsay Stalzer and libero Yuri Fukuda as the team’s imports.
Ms. Bell proved herself up to the challenge in just short notice, having her game complement the team’s system under coach Shaq Delos Santos and the play of Petron’s local crew that includes Rhea Dimaculangan, Aiza Maizo-Pontillas, Frances Molina, Carmela Tunay, Mika Reyes and Remy Palma.
The former University of Texas standout played big in the decider, finishing with 28 points, 25 off kills and three blocks, to lead her team while Ms. Stalzer had 24 points.
For her steady play all throughout the Grand Prix, meanwhile, Ms. Stalzer was adjudged most valuable player, the second time she has done so in the PSL.
Having experienced the agony of losing last year to claiming the title all together this time around, Ms. Stalzer said she feels a lot of sense of accomplishment and that she is happy for her team.
“Of course, it feels amazing. Last season left a bitter taste in my mouth. So, it’s so awesome when you set a goal and you work towards that goal every single day and it finally paid off. It’s a great feeling for all of us,” the league MVP said immediately after their victory at the Smart Araneta Coliseum.
The same fulfillment was shared by Petron coach Delos Santos, who described what they had done as the team wanting to really go back to the top and working hard for it.
“After three conferences of the Grand Prix, finally we made it,” said Mr. Delos Santos.
“I don’t know what to say, I don’t know how to explain this feeling. I’m just so happy that we finally achieved our goal and took home the crown. Girls, we finished our business. Good job,” the elated coach added.
Meanwhile, also handed out during the last day of the PSL Grand Prix were the top individual honors led by the MVP award to Ms. Stalzer.
Joining the Petron star in the honor roll were Sara Klisura of Cocolife (best spiker), MJ Perez of F2 Logistics (second best spiker), Aby Maraño of F2 Logistics (best middle blocker) and Mika Reyes of Petron (second best middle blocker).
Kim Fajardo of F2 Logistics (best setter), Elizabeth Wendel of Foton (first best opposite spiker), Kennedy Bryan of F2 Logistics (second best opposite spiker), Minami Yoshioka of F2 Logistics (first best libero) and Kacca Vukomanovic of Foton (second best libero).
Next for the PSL, whose matches are aired over ESPN5, is the All-Filipino tournament. — Michael Angelo S. Murillo

1...12,68112,68212,683...14,278Page 12,682 of 14,278
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube