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Dealing with Monday and Friday sick leaves

I have a long-time worker who is notorious for filing for sick leave on Fridays, Mondays, and the day before or after holidays. I consulted our human resources (HR) manager who advised me to ignore such minor issues. But we have important work to do and can’t afford emergency absences in our understaffed department. What can we do? — Blue Mountain.

I have encountered two such problem employees in companies I worked for, except that they were motivated for the wrong reasons. I suspect they were also trying to test my patience. In Company A, we were in charge of publishing a two-page weekly newsletter which needed to come out early Monday. The mandate was clear.

The newsletter had to be put together no matter what, even to the extent of working weekends. No ifs, no buts. When I moved to Company B, I was assigned a much more difficult task — to publish a biweekly eight-page newsletter that must also come out Mondays.

This task came on top of everything else that was assigned to me. I handled labor relations, managed employee discipline, did public relations work, coordinated with the labor union, organized sports and socials, handled corporate social responsibility, managed employee benefits, and many others.

In publishing the newsletters, we did research, conducted interviews, took photographs, wrote and edited the content, laid out the articles, and coordinated with the printer. Unfortunately, the burden was not shared by my two publication assistants in companies A and B.

Or at least, that’s how I felt at the time. They resorted to emergency leaves and sick leaves for dubious reasons, most of the time without informing me directly and instead relaying the message through our department secretaries.

This was when mobile phones were not yet in wide use. When deadlines approached, my work schedule was thrown into disarray. I also had to work during weekends without extra pay because I was salaried.

FIVE OPTIONS
I communicated this problem to my bosses, whose advice was similar to the position taken by your HR manager: grin and bear it. Somehow, I managed the situation by spending long hours at work, in the process proving that I could do it without their assistance. I turned the tables by outsourcing the task to on-call writers, cartoonists and layout artists, even spending my own money to do so.

It was all worth it. My assistants started to feel insecure about their jobs.

I’m not sure if such a solution works for you. Our situations may vary and require different approaches. If that’s the case, let me share with you the following options:

One, establish a pattern of emergency leaves. “Emergency leaves” mean any absence from work without prior management approval. This includes any situation like a broken-down vehicle of an employee, fire in the neighborhood, assisting a family member who is hospitalized — in other words, events that are difficult to predict, including illnesses that require sick leave.

The challenge is to determine the reasonableness of these leaves in a given year.

Two, calculate the damage or losses. This includes the amount of overtime pay for other employees who are required to pitch in, professional fees of subcontractors and other related expenses, like the use of utilities (electricity, etc.) in the office. That’s not all. You may have to include other nonquantifiable expenses or any amount that you are forced to absorb.

Three, engage a physician to do house calls. The doctor may be assigned by a Health Maintenance Organization (HMO). This face-to-face visit could pose additional cost for the organization and can only be used sparingly depending on the situation or the employee’s notoriety. If medically feasible, “arrange” with the HMO to bring a sick worker to a hospital to deliver a message.

Four, connect habitual sick leaves with the medical exam. Include a provision in the HMO contract giving the latter the right to conduct physical check-ups on those accumulating excessive sick leaves. This may discourage people from calling in sick if they know that the HMO will conduct a mandatory check-up and withhold medical benefits to those who refuse.

Last, conduct regular engagement dialogues. Maintaining open communication is very important. However, you must come prepared with data on the frequency of the worker’s emergency leaves and how they are adversely affecting company operations. Explain the issue and secure a commitment from the concerned employee.

If the problem persists, disallow the “emergency” or “sick” leave as a last resort. If you’ve reached this stage, monitor the employee’s reaction and prepare for a more difficult situation. When you do this, be honest with yourself. Who knows? You might be part of the problem.

 

Bring Rey Elbo’s leadership program called Superior Subordinate Supervision to your management team. Chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

How PSEi member stocks performed — December 7, 2023

Here’s a quick glance at how PSEi stocks fared on Thursday, December 7, 2023.


Philippine Labor Force Situation

THE PHILIPPINES’ unemployment rate fell to the lowest in 18 years in October, underscoring the strength of the country’s labor market. Read the full story.

Philippine Labor Force Situation

Process restructuring must come before automation, ARTA says

PHILSTAR FILE PHOTO

THE GOVERNMENT must transform business processes before automating services, the Anti-Red Tape Authority (ARTA) said.

“Business process transformation first before automation, because the moment you automate efficient processes, you can maximize the benefits, as opposed to automating an inefficient process,” ARTA Deputy Director General for Operations Gerald G. Divinagracia said at a Stratbase ADR briefing on Thursday.

“There was a need for government agencies to transform their services, to deliver excellent services. We see government services online, however, (which are) not yet connected end-to-end. Services are not fully automated… That’s why we embarked on transparency and connectivity in terms of end-to end processes,” he added.

Mr. Divinagracia cited challenges to doing business such as poor turnaround time, government fees and requirements and lack of predictability.

“The way for us to solve this is through two major (approaches): a conducive regulatory framework and delivery of government support and services. Streamlining and enabling agencies in streamlining their processes,” he said.

Makati Business Club Executive Director Francisco Alcuaz, Jr. said that the government should promote transparency in its policies, particularly in the areas of freedom of information; statements of assets, liabilities, and net worth (SALN); money laundering; and bank secrecy.

“If you strengthen the SALN rules and loosen the bank secrecy law, you will help prosecutors and even ARTA to prosecute officials and businesses who corrupt the system. This will level the playing field and attract businesses that play by the rules,” Mr. Alcuaz said.

“Businesses want to be playing in the Philippines. Rather than corruption, the money will be flowing to more infrastructure that lasts longer. Not infra where they cut corners or scrimp on the materials that deteriorate in a few years,” he added.

Mr. Alcuaz said transparent government will help attract investors.

“If you have a transparent government rather than corruption, the money that the businessmen will be spending will be going to developing the best products and services for Filipinos and/or foreign buyers and for the world, and into investments and expansions that create more jobs,” he added. — Luisa Maria Jacinta C. Jocson

S. Korea welcomes ease of doing business improvements ahead of FTA ratification

REUTERS

PHILIPPINE EFFORTS to improve ease of doing business are welcome and will ease the flow of trade once a free trade agreement (FTA) with South Korea comes into force, the Korean ambassador said.

“Korea will ratify the agreement soon, and I have been assured that the Philippine Senate will (ratify) soon. With this win-win agreement, our two countries’ trade and investment are set to increase in the coming years,” Ambassador to the Philippines Lee Sang-hwa said.

“In this context, Korea strongly supports the Philippine government’s efforts to improve its ease of doing business environment,” he added.

In September, the Philippines and South Korea signed an FTA, which is designed to open up both economies to each other’s goods and help mitigate supply chain disruptions.

Mr. Lee said the potential areas of cooperation between the Philippines and South Korea include renewable energy and critical minerals.

“We hope that there will be more progress in the two countries’ collaboration in high-efficiency clean energy sources such as nuclear power and hydrogen technology. And we also look to intensify cooperation in critical minerals,” he added.

South Korea is one of the Philippines’ top trade and investment partners. Last year, it ranked 4th in bilateral trade, which was valued at $15.45 billion. South Korea was also sixth in total approved investments at $90.62 million.

Meanwhile, Mr. Lee said that people-to-people exchanges are also expected to grow along with trade.

“The Korean Visa Application Center, which opened in September, receives 800-1,000 visa applicants every day from Filipinos who want to visit Korea,” he said.

“And the number of Korean visitors to the Philippines is expected to reach the pre-pandemic level of 2 million people,” he added.

The Department of Tourism has reported that visitors from South Korea in the year to date ending Nov. 27 numbered 1.27 million or 26.37% of the total, making it Philippines’ top source market for foreign arrivals. — Justine Irish D. Tabile

Peso rises on weak US jobs data

BW FILE PHOTO

THE PESO continued to climb against the dollar on Thursday after a weaker-than-expected US private payrolls report.

The local unit closed at P55.30 per dollar on Thursday, inching up by less than a centavo from P55.305 on Wednesday, based on Bankers Association of the Philippines data.

This was the peso’s strongest close in over four months or since its P55.19-per-dollar finish on Aug. 2.

The peso opened Thursday’s session at P55.37 against the dollar. Its intraday best was at P55.26, while its weakest showing was at P55.42 versus the greenback.

Dollars exchanged rose to $1.21 billion on Thursday from $1.03 billion on Wednesday.

“The peso appreciated following the weaker-than-expected US private payrolls report,” a trader said in an e-mail.

US private payrolls increased less than expected in November as the labor market gradually cools, Reuters reported.

Private payrolls rose by 103,000 jobs last month, the ADP National Employment Report showed on Wednesday. Data for October was revised lower to show 106,000 jobs added instead of 113,000 as previously reported. Economists polled by Reuters had forecast private payrolls rising 130,000.

The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the release on Friday of the Labor department’s more comprehensive and closely watched employment report for November.

The ADP report has been a poor gauge for predicting the private payrolls count in the employment report.

Philippine financial markets will be closed on Friday for a non-working day in celebration of the Feast of the Immaculate Conception. — with Reuters

PHL stocks drop further to track Asian, US shares

PHILIPPINE STAR/KRIZ JOHN ROSALES

STOCKS dropped further on Thursday to track Wall Street’s and Asian markets’ decline on continued profit taking and as the market looked for fresh trading drivers.

The Philippine Stock Exchange index fell by 71.08 points or 1.12% to end at 6,234.77 on Thursday, while the broader all shares index declined by 22.08 points or 0.65% to 3,329.58.

“This Thursday, the local market dropped by 71.08 points to 6,234.77. Investors took cues from Wall Street’s overnight performance wherein trading was cautious as investors await the US’ November labor market data,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

Market sentiment was also affected by the 2022 Program for International Student Assessment rankings, where the Philippines placed 77th out of 81 countries, he said.

“Additionally, the dismal ranking of the Philippines in the recent 2022 Program for International Student Assessment… was digested by investors. The results reflected our relatively challenged educational sector, which can have consequences on our economy’s competitiveness in the long run,” Mr. Plopenio said.

“The market was weaker today in tandem with most of the Asian markets. Local market weakness was exacerbated by profit-taking as we encountered resistance at the 6,300 level,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan added in a Viber message.

Asian shares fell with Wall Street on Thursday, while a sharp fall in oil prices to a six-month low and a soft reading on the US labor market boosted the global bond market, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8%, pulling it down 1.9% so far this month after a 7.3% rally in November. Japan’s Nikkei fell 1.7%.

Overnight, Wall Street was dragged lower by energy stocks as oil prices slid and by tech shares. The Dow Jones slipped 0.2%; the S&P 500 lost 0.4%; and the Nasdaq Composite fell 0.6%.

At home, sectoral indices declined on Thursday. Financials dropped by 26.47 points or 1.52% to 1,705.73; services retreated by 21.33 points or 1.36% to 1,541.36; holding firms went down by 65.63 points or 1.09% to 5,912.04; property lost 13.84 points or 0.5% to end at 2,744.38; mining and oil dropped by 48.05 points or 0.49% to 9,640.50; and industrials declined by 41.13 points or 0.46% to 8,762.70.

“Among the index members, Wilcon Depot, Inc. was at the top, climbing 1.99% to P20.50. Ayala Corp. lost the most, dropping 3.1% to P640.00,” Mr. Plopenio said. 

Value turnover went down to P3.67 billion with 270.24 million shares switching hands from the P5.67 billion with 345.22 million issues seen the prior day.

Advancers edged out decliners, 83 against 82, while 49 names closed unchanged. 

Net foreign selling stood at P410.52 million on Thursday versus the P378.57 million in net buying logged on Wednesday. — RMDO with Reuters

NIA agrees to host RE projects at irrigation sites

REUTERS

THE Department of Energy (DoE) and the National Irrigation Administration (NIA) said on Thursday that they signed an agreement to use irrigation sites for renewable energy (RE) projects.

Under the agreement, the DoE will use NIA sites, including areas identified for future irrigation projects, in a manner that does not hinder the facilities’ irrigation functions.

“The agreement between DoE and NIA signifies a crucial step forward in the pursuit of water security and sustainable resource management, which is aligned with the goals outlined in Executive Order No. 22, series of 2023,” according to a statement issued by the Presidential Communications Office.

Energy Undersecretary Sharon S. Garin said the agreement is in line with the government’s goal of generating 35% of power from renewable energy sources by 2030 and 50% by 2040.

NIA administrator Eduardo G. Guillen said the project converts water rights for multi-purpose use, adding that the NIA is now looking at floating solar power generating plants.

“As part of the strategic initiative, NIA’s irrigation water will not only help the agency to expand economically and generate additional funds for the operation and maintenance of its irrigation facilities, while allowing the DoE to provide the public with better access to clean, reasonably priced energy sources,” the Palace said. — Kyle Aristophere T. Atienza

Agricultural goods trade deficit widens in Q3

TIM MOSSHOLDER-UNSPLASH

THE trade in agricultural goods posted a deficit of $2.97 billion in the third quarter, with the decline in exports outweighing weaker imports, according to the Philippine Statistics Authority (PSA).

In a report, the PSA said agricultural trade — the sum of exports and imports — fell 12% to $6.2 billion, reversing the 17.5% increase a year earlier.

Agricultural exports declined 13.3% to $1.61 billion for the period, accounting for 8.2% of total exports.

Leading exports were edible fruit and nuts as well as peel of citrus fruit melons, valued at $492.09 million or 30.5% of the total.

Agricultural products shipped to the Association of Southeast Asian Nations accounted for $182.98 million, with tobacco and manufactured tobacco substitutes the top items.

Malaysia was the Philippines’ top agricultural export market in the region, accounting for $53.88 million.

“Exports of agricultural goods to (the European Union) in the third quarter of 2023 reached $285.19 million, which contributed 12.5% to the country’s total value of exports to EU member countries,” the PSA said.

The Netherlands remained the top buyer of agricultural goods within the EU. It purchased $285.19 million or 52.8% of Philippine farm exports to the region.

Animal or vegetable fats and oils and their cleavage products, prepared edible fats and animal or vegetable waxes remained the top agricultural exports to the EU.

Imports of agricultural goods fell 11.5% to $4.59 billion, representing 14.6% of total imports.

Cereals remained the top agricultural imports for the period at 21.1% of the total, or $969.89 million.

“The (Philippine) agricultural imports from EU member countries amounted to $382.34 million or 20.5% of the total value of imports in the third quarter,” it said.

Among EU members, Spain was the top supplier of goods, accounting for $91.69 million or 24% of overall farm imports.

Meat and edible meat offal were the top imports from the EU. — Adrian H. Halili

Internet Transactions Act seen enabling effective consumer protection measures

FREEPIK

THE Department of Trade and Industry (DTI) said the Internet Transactions Act (ITA) will allow it to effectively protect consumers against unfair online business practices.

“The ITA is a landmark measure as it comes at a time when online selling and online buying are now part of our way of life,” Trade Secretary Alfredo E. Pascual said in a statement on Thursday.

The measure, signed this week, provides for more extensive monitoring of electronic commerce (e-commerce) companies with the creation of an online business registry and an e-commerce bureau.

“We are particularly looking forward to the creation of an e-commerce bureau that will also provide the DTI much needed resources, both human, and financial, in implementing our mandate to develop and promote e-commerce in the country,” Mr. Pascual said.

The e-commerce bureau will be an arm of the DTI, and will implement the law, as well as the Electronic Commerce Act of 2000 and the Philippine E-Commerce Roadmap.

“The e-commerce bureau shall also encourage the establishment of an e-commerce trust mark in close collaboration with the private sector and maintain a government-wide online consumer complaint tracking system that will be actively monitored by the DTI,” it said.

In a separate statement, the DTI said business groups and private companies have expressed their support on the signing of the ITA.

Philippine Retailers Association President Roberto S. Claudio said the law “will ensure a level playing field between traditional and online retailing to benefit Filipino consumers and merchants in the changing omnichannel environment.”

Fintech Alliance Philippines Founding Chairman Lito Villanueva said that the law will also set standards and institutionalize a code of conduct within the eCommerce ecosystem. 

“This is a critical component toward a sustainable and inclusive digital economy. We look forward to working with the DTI and Bangko Sentral ng Pilipinas particularly on incentivizing digital payments to increase adoption by businesses and consumers,” he said. 

PLDT Inc. President and Chief Executive Officer Alfredo S. Panlilio said that the legislation will further strengthen the digital economy by enhancing relationships between online merchants and online consumers.

“This will help ensure the safety and security of internet transactions, which are the building blocks of a dynamic e-commerce ecosystem,” Mr. Panlilio said. — Justine Irish D. Tabile

Lifting of ban on new NCR ecozones expected to benefit IT-BPM industry

BW FILE PHOTO

THE lifting of the moratorium on developing new economic zones and information technology (IT) parks in Metro Manila will benefit the IT and business process management (IT-BPM) industry, property consultancy Colliers said.

In a statement, Colliers said Metro Manila remains the preferred “starting point” for investors setting up shop in the country given its infrastructure, large talent pool, vibrant business centers, and ease of doing business.

“This is also evident in the office real estate market given the current Metro Manila to countryside office demand split of 80:20,” it said.

On Nov. 24, President Ferdinand R. Marcos, Jr. signed Administrative Order (AO) No. 11, which amended AO No. 18 (2019). The earlier AO had imposed a freeze on the processing of ecozone applications in Metro Manila.

“Colliers believes that the IT-BPM sector will greatly benefit from this amendment as this will allow Philippine Economic Zone Authority (PEZA)-registered entities or even prospective locators considering PEZA to move forward with their projects and consider more locations within Metro Manila,” the firm said.

“Allowing more accredited IT parks in (the region) also provides an opportunity for local government units outside the major business districts to host new IT-BPM locators that will help facilitate job generation,” it added.

Under AO No. 11, applicants granted pre-qualification clearances from PEZA before the moratorium’s effectivity will be allowed to resubmit their applications.

According to Colliers, the available PEZA-accredited office stock in Metro Manila is currently at 1.5 million square meters, or 57% of the 2.6 million square meters of total available space in the region as of September.

“With the recent amendment to AO 18, enterprises registered with an investment promotion agency will have more options to explore for their future real estate plans — may it be a new setup, expansion, or relocation,” Colliers said. — Justine Irish D. Tabile

Customs goods seizures hit P42.5 billion

PHILIPPINE STAR/EDD GUMBAN

THE Bureau of Customs (BoC) said it seized P42.5 billion worth of illicit goods in the year to date ending Dec. 1.

According to preliminary data, the BoC showed that counterfeit goods made up the bulk of seizures at P24.36 billion, followed by illegal drugs (P7.58 billion), smuggled agricultural products (P3.78 billion), and cigarettes and tobacco (P3.77 billion).

The seized items also include general merchandise (P964.1 million), fuel and oil (P716.4 million), steel products (P585.2 million), used clothing (P351 million), and vehicles and accessories (P264.1 million).

Customs Commissioner Bienvenido Y. Rubio said the smuggled goods seized during the period doubled from a year earlier.

Seized items are typically disposed of through auction, condemnation, or donation.

In the 11 months to November, the BoC collected P813.651 billion, or about 93% of its full-year target. Collections were 2.2% higher than the P795.966-billion target for the period and up 3.09% from a year earlier. — Luisa Maria Jacinta C. Jocson