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MWSS: Collection from water concessionaires is legal

THE Metropolitan Waterworks and Sewerage System (MWSS) on Thursday said the supposed “excessive” amount collected from its regulated water concessionaires is legal.

“We emphasize that any increase in tariff is subject to the review of the MWSS Regulatory Office, as they determine reasonable rates in the delivery of safe drinking water supply and environmentally safe sewerage services,” the agency said in a media release.

In its 2022 annual audit report, the Commission on Audit (CoA) said the MWSS billed and collected the share of Maynilad Water Services, Inc. and Manila Water Co., Inc. for the costs and expenses involving the New Centennial Water Source-Kaliwa Dam Project.

According to the agency, it explained to the CoA on June 16 the legal background of the collections.

It said it is allowed to collect local counterpart costs under its tripartite memorandum of agreement (MoA) with the two concessionaires. The collection covers the loan equity of the commercial contract amount, the cost of permits and clearances, and a standby cost, among others.

The CoA said that with the collections covering the dam project and the Bantay Gubat Fund, the fees received from the concessionaires were in “excess of the limitations set under the concession agreement.”

The MWSS addressed the concerns, saying the collection is under the same tripartite MoA that requires the funding of the salaries and wages of the Bantay Gubat personnel.

“The MWSS shall continue to exercise prudent collections from the water concessionaires, prioritize building its water resources, and ensure the welfare of Bantay Gubat, our partners in protecting our watershed,” the water administrator said.

“We assure the public that our Agency’s actions are aligned with legal requirements, the Philippine Development Plan, and the future water needs of the Filipino people,” it added. — Sheldeen Joy Talavera

Hollywood writers’ union says new proposal from studios not enough

NATHAN DEFIESTA-UNSPLASH

HOLLYWOOD studios and streaming services on Tuesday released the terms of a revised proposal to striking writers, but the union urged members to continue picketing as the new offer failed to address all their concerns.

The Writers’ Guild of America (WGA) had walked off the job on May 2 after negotiations reached an impasse and were later joined by members of the Screen Actors Guild, halting productions across Hollywood and costing the California economy billions of dollars.

The Alliance of Motion Picture and Television Producers (AMPTP), which negotiates on behalf of companies including Walt Disney and Netflix, changed its offer to include new details about critical issues like compensation, minimum staffing, residual payments, and curbs on artificial intelligence (AI).

According to the latest proposal, the WGA will get a compounded 13% pay increase over the three-year contract, and AI-generated written content will not be considered “literary material.”

The streaming platforms also offered to provide the WGA, which represents around 11,500 film and television writers, with the total number of hours viewed for each made-for-streaming show in confidential quarterly reports.

“We have come to the table with an offer that meets the priority concerns the writers have expressed. We are deeply committed to ending the strike and are hopeful that the WGA will work toward the same resolution,” AMPTP President Carol Lombardini said in a statement.

WGA received the counterproposal from AMPTP on Aug. 11 and on Tuesday met with Walt Disney CEO Bob Iger, Warner Bros. CEO David Zaslav, NBCUniversal Studio Group Chair Donna Langley and Netflix Co-CEO Ted Sarandos, to discuss the new offer.

“But this was not a meeting to make a deal. This was a meeting to get us to cave,” WGA said in a message to its members.

The union said it explained in the meeting why the offer fell short and “failed to sufficiently protect writers from the existential threats that caused us to strike in the first place,” but AMPTP released details of the proposal anyway.

WGA plans to continue picketing and said it would share with members more details on the state of the negotiations.

“And we will see you all out on the picket lines and let the companies continue to see what labor power looks like,” it said. — Reuters

Hanging over the world, a second Trump term

RAWPIXEL.COM

THE same question that hangs over American democracy also casts a shadow over all of world politics: What if Donald Trump walks back into the White House in 2025?

He may or may not. But if he does, he’ll feel unshackled from even the few fetters that restrained him in his first term, and will try to bring all branches of federal government under his personal control in order to go after his domestic enemies.

Just as ominously, Trump would also revert to his foreign policy of chaos, driven by instincts and complexes rather than interests and principles. John Bolton, Trump’s former national security advisor, describes the result as “an archipelago of dots, unconnected by chords of logic.”

There are those around the world who’d be giddy — the populists, strongmen, and autocrats, the type Trump befriends, admires, and emulates. One is Victor Orban, prime minister of Hungary and darling of America’s MAGA right. Another is Benjamin Netanyahu, the Israeli prime minister who channels Trump in weaponizing the institutions of democracy to gain personal power — and stay out of jail.

The most sinister foreign fan, though, is Vladimir Putin, the Russian president who rooted for Trump in 2016, authorized Russian influence operations for him in 2020, and would love to strike a deal with The Donald in 2025 — about carving up Ukraine and much else. The administration of US President Joe Biden now assumes that Putin will therefore keep up his bloody but stalled assault against Ukraine at least until the American election.

For that same reason, Ukraine is terrified about a second Trump term. Recall that Trump’s first impeachment centered on his withholding of aid to Kyiv to pressure it into going after the Biden family. In Trump’s mind, Putin’s brutal war of aggression is little more than a territorial dispute in which the US and its allies have little at stake. Whereas Biden has held together the West in support of Kyiv, Trump would probably abandon the Ukrainians to their fate, or force them into negotiations against their will.

That prospect also spooks America’s partners. In his first term, Trump made clear how little he thinks of alliances, even NATO, the mutual-defense bloc that has deterred the Kremlin since 1949. He cast doubt on America’s resolve to honor NATO’s Article 5 — which says that an attack against one is an attack against all — and threatened to pull out of the alliance altogether. In his second term, he just might.

Whether he would or not, the mere possibility unsettles NATO members such as Estonia, Latvia, and Lithuania — post-Soviet nations that would feel most threatened by Russia if it succeeds in Ukraine — and non-NATO allies such as South Korea and Japan. Meeting with Biden at Camp David last week, they took a first step toward a NATO-lite alliance in East Asia to deter China. With Trump in the White House, they may conclude that America’s word is not to be trusted. That same thought may tempt China to attack Taiwan or seize more of the South China Sea.

At a more general level, Trump would bury whatever remains of the notion that America, a fading superpower that’s nonetheless the closest thing the world has to a hegemon, should lead internationally to maintain order. In place of principles, Trump would make policy with a brute and opportunistic transactionalism — a commercial deal here and a trade war there, a photo-op with a dictator here and the snub of an ally there. That archipelago of dots again.

What can America’s allies do to prepare? The logical conclusion for blocs such as the European Union (EU) would be to finally pool military strength in the form of a “European Army” that can deter aggression even without American might. French President Emmanuel Macron, who likes to talk up Europe’s “autonomy,” ought to favor that path, even putting his country’s nuclear arsenal at the service of the whole EU.

In practice, he won’t. Nor will the EU, a fractious bunch, compensate for American withdrawal by becoming a United States of Europe. The more likely result of Trumpist isolationism is that Europe’s regional powers would again drift apart. The Poles, if they still have their populist government, might flirt with Trump for special deals. The Germans might revert to historical type and negotiate with the Kremlin over the heads of their eastern neighbors. The French would try to stay aloof in Gaullist hauteur.

Such fragmentation and disorder would manifest in other regions. International politics is inherently anarchical and requires either a hegemon or a balance of power to maintain order. Without the first — which took the form of a Pax Americana since World War II — the world would probably revert to searching for the second. This path tends to lead through a series of wars, especially as China will vie with the US for supremacy in the nascent global system.

America’s allies are well aware of these scenarios. So I asked Michael Link, the coordinator for transatlantic relations at Germany’s foreign ministry, how they’re preparing. Germany and its European partners should use the time until the election to seal as many pacts as possible with the Biden administration, he told me via e-mail. Simultaneously, the Europeans should build “good, robust relationships” with Republicans in Congress and elsewhere. If Trump then tries to leave NATO or close US bases in Germany, America’s allies could “mobilize these contacts … to work around Trump.”

Forgive me, but that’s it? Indeed it is. Neither Europe nor East Asia or any other region of the world knows how to step up to the challenge of Trump 2.0 and the associated forfeiture of American leadership. The best they can do is talk to other Republicans and hope that the better angels within the GOP save the world from disaster.

Here’s hoping that those better angels still exist in the erstwhile Party of Lincoln. Tonight’s debate among Trump’s challengers for the Republican nomination, which he is ghosting, may offer some clues. One glimmer of optimism came out of the Senate last month, when it passed a bipartisan bill that would prevent any president from pulling out of NATO without two-thirds approval in the Senate or an Act of Congress. Getting it past Republicans in the House will be harder though.

US elections are almost never decided on foreign policy. But US voters, and especially Republicans, must be aware that what’s at stake in 2024 is the future of not only the country but also the world. Nuclear non-proliferation, the fight against climate change and other forms of international cooperation, as well as the struggles between autocracy and democracy and disorder and order — all this will in effect be on the ballot.

Will Trump walk back into the White House? America’s foes hope so. Its friends pray he won’t.

BLOOMBERG OPINION

P150 wage hike to lift pay above ‘poverty’ level

By John Victor D. Ordoñez, Reporter

THE proposed P150 legislated wage hike will raise worker pay beyond their current “poverty” levels and unleash consumer spending power, the Trade Union Congress of the Philippines (TUCP) said.

“Purchasing power continues to erode (due to) rising prices of rice and oil. (It is these prices) that are fueling renewed concerns about inflation — and not (raising) workers’ poverty wages,” Carlos Miguel S. Oñate, legislative officer of the TUCP, told BusinessWorld in an e-mail.

“We push for the P150 wage hike not only to cushion the impact of inflation on working families but to revitalize our consumption-driven economy and drive wage-led growth as a more inclusive and equitable strategy of economic recovery and development,” he added.

Finance Secretary Benjamin E. Diokno and National Economic and Development Authority Secretary Arsenio M. Balisacan have warned that proposals to legislate a P150 wage hike would stoke inflation.

Mr. Balisacan told a Senate hearing this month that the government should focus on improving job quality before implementing another wage hike.

“We understand what the problems are: high cost of energy, poor infrastructure, and high cost of doing business. We’re trying to address those,” he said.

“But, if we address the problem of low incomes now by raising wages, (the economy will slow down).”

The jobless rate in June fell to 4.5% from 6% a year earlier. The unemployment rate averaged 4.6% in the first half.

Legislators are proposing across-the-board minimum wage increases for workers in the private sector and agriculture industry to help them deal with the rising cost of living.

In March, Senate President Juan Miguel F. Zubiri filed a bill seeking to increase the minimum wage for such workers by P150.

At the House of Representatives, the Makabayan coalition proposed a wage hike of P750 for all private-sector workers, including those working in special economic zones, freeports and in agriculture.

BMI Country Risk and Industry Research said in an Aug. 11 report that elevated inflation, high borrowing costs and an uptick in jobless rates are risks to the consumer spending outlook in the near term.

BMI sees consumer spending expanding 5.5% this year, and projected that inflation will likely remain above the Bangko Sentral ng Pilipinas’ 2-4% target range, averaging 5.7% this year.

Headline inflation slowed for a sixth straight month to 4.7% in July from 5.4% in June. It marked the 16th straight month of inflation exceeding the 2-4% target band.

The National Capital Region Tripartite Wages and Productivity Board approved a P40 hike on June 29, bringing the daily minimum wage to P610 for workers outside agriculture.

Wages are typically raised by region, in consideration of the highly localized nature of the cost of living. The proposal to legislate a wage hike would represent an extraordinary bypassing of the wage-setting mechanism.

Michael L. Ricafort,  Rizal Commercial Banking Corp. chief economist, said minimum wage proposals should be coursed through the regional wage-setting system, which he said have tended to produce “acceptable and predictable” increases.

“This (legislated wage increase) would result in higher inflation due to second-round effects of higher prices of other affected goods and services,” he said in a Viber message.

Every wage order approved by a Regional Tripartite Wages and Productivity Board must be approved by the Labor secretary. Wage boards can only act on wage petitions a year after a region’s last wage order.

Labor groups have cited the need to review the wage-setting process since many workers still live in poverty even after the recent P40 wage hike.

Labor Secretary Bienvenido E. Laguesma has said his department will defer Congress should it decide to intervene with a wage hike law.

The Employers Confederation of the Philippines has said a legislated wage hike should also consider workers in less formal employment, noting that private sector workers only make up 16% of the workforce.

“Workers cannot remain the whipping boys with stagnant wages while we take our sweet time in formulating, implementing, and evaluating long-pending reforms,” Mr. Oñate said.

End-July transactions made via InstaPay, PESONet climb further

FREEPIK

TRANSACTIONS made through InstaPay and PESONet continued to grow as of end-July from a year earlier as strong economic activity boosted payments, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The combined value of transactions done through the BSP’s automated clearing houses InstaPay and PESONet rose by 30.7% to P7.02 trillion as of July from P5.37 trillion in the same period last year.

In terms of volume, transactions made via the clearing houses grew by 37% to 477 million as of end-July from 348 million in the comparable year-ago period.

“The sustained strong year-on-year growth in InstaPay and PESONet transactions may reflect increased business and economic activities,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The accelerated adoption of digital fund transfers as a good alternative to check payments also contributed to the double-digit growth in InstaPay and PESONet transactions, Mr. Ricafort said.

Increasing online transactions and e-commerce also led to greater demand for digital payments, he said.

Broken down, the value of PESONet transactions increased by 25.1% to P4.33 trillion as of end-July from P3.46 trillion a year prior.

The volume of transactions that went through the payment gateway stood at 52.43 million, 9.2% higher than the 47.99 million seen as of July 2022.

Meanwhile, the value of transactions done through InstaPay surged by 40.8% year on year to P2.69 trillion as of July from P1.91 trillion a year prior.

The volume of InstaPay transactions grew by 41.6% to 425.07 million from 300.18 million at end-July 2022.

“Continued double-digit growth for InstaPay and PESONet transactions could still continue for the coming months amid continued recovery of many businesses/industries,” Mr. Ricafort added.

PESONet and InstaPay are automated clearing houses launched under the BSP’s National Retail Payment System (NRPS) that was rolled out in December 2015 to promote a safe, efficient, affordable, inclusive and reliable retail payment system.

Operated by the Philippine Clearing House Corp. (PCHC), PESONet enables high-value transactions and is considered as an electronic alternative to the paper-based check system and recurring payments.

Meanwhile, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is handled by BancNet, Inc.

Earlier this month, PCHC and BancNet announced that their proposed merger has been approved by their respective shareholders, with 86.67% of BancNet shares being voted in favor of the merger and 78.57% of PCHC shares being voted in favor of the merger.

“The merger of BancNet and PCHC will create a stronger, more resilient organization that will be better able to provide safe, reliable, and efficient payment services for the benefit of consumers. This will be achieved through the consolidation of their financial technology, talent, and other resources,” BancNet earlier said.

The proposed merger was initiated by the Bankers Association of the Philippines and now awaits approval from the BSP, the Securities and Exchange Commission and the Philippine Competition Commission.

Under its Digital Payments Transformation Roadmap, the BSP wants 50% of total retail transactions done online and to bring 70% of Filipino adults into the financial system by the end of this year.

The share of digital payments in total retail transactions increased to 42.1% in 2022 from 30.3% in 2021.

The BSP’s NRPS promotes the interoperability of the payment system to enable consumers to transfer funds from one account to another, even if the second account is with another financial institution. — K.B. Ta-asan

GCash waives QR fees for micro-merchants until year-end

FINANCIAL super app GCash has waived the QR Ph transaction fees for micro-merchants until end-2023 to help boost the income of small businesses using the scan-to-pay service.

Aside from the waived QR transaction fees, GCash said micro-merchants will also have an increased wallet limit of up to P500,000 per month while the 1.5% transaction fee is waived for up to P100,000 in gross sales

“For GCash, making this service free means micro-entrepreneurs can earn a little extra for their families through safe cashless transactions. We are committed to working with our micro-entrepreneurs to achieve their business goals in the digital economy,” G-Xchange President and Chief Executive Officer Oscar A. Reyes, Jr. said in a statement on Aug. 23. 

G-Xchange is the mobile wallet operator of GCash.

According to GCash, micro-merchants are classified as small-scale businesses such as sari-sari store owners, public market vendors, and online sellers. 

“Making use of our scan-to-pay enables faster tracking of payments received for merchants without imposing any additional cost, even for their customers,” GCash said.

GCash claims that electronic wallets and other payment platforms impose fees of up to 2% for using cashless transaction services such as QR-based and card payments.

“We are one with the Bangko Sentral ng Pilipinas, in its goal of bringing more micro-merchants into the digital economy. Together with our partners, we will equip micro, small, and medium enterprises with the right tools and products so they can grow their businesses safely and conveniently,” Mr. Reyes said. 

As of writing, GCash has empowered 845,000 small-scale community merchants with various digital financial solutions. 

GCash is a wholly owned subsidiary of Mynt or Globe Fintech Innovations, Inc., which is a part of the Globe Telecom, Inc. group. — Revin Mikhael D. Ochave

Netflix signups remain high, fueled by password-sharing crackdown

DAWID ŁABNO-UNSPLASH

SIGNUPS for Netflix in the United States remain elevated despite a fall from June’s record high after the video-streaming pioneer’s crackdown on shared passwords came into effect in May, according to data from research firm Antenna.

“Love is sharing a password,” Netflix had posted on X — then known as Twitter — in 2017, but its global crackdown on password-sharing hinted at its strategy to open new revenue streams in a saturating, competitive market.

Attracting new subscribers and retaining old ones has become a tough task in the last few years as customers now have a surfeit of options — Walt Disney’s streaming service, Amazon.com’s Amazon Prime Video, and Warner Bros Discovery’s Max, among others.

Wall Street had raised concerns that password-sharing could mute subscriber growth. However, Netflix’s crackdown managed to reinvigorate its user additions.

The video-streaming company’s gross subscriber additions fell by 25.7% in July over the prior month, after signups more than doubled in June, Antenna said. But its 2.6 million gross additions in July were overall elevated when compared to the normal, it added.

Netflix had said last year it was going to limit account-sharing and was testing various approaches in some markets.

The company estimated that more than 100 million households had shared their log-in credentials with friends and family outside their homes. This has led analysts to expect that about 50 million users will ultimately create their own accounts.

Around 23% of users who signed up in July chose the cheaper ad-supported Netflix plan — the highest since the plan was launched in November — an increase of four percentage points from a month earlier, Antenna said.

The research firm sources its streaming data from transaction records such as online purchase receipts and banking information. — Reuters

The boringly dull self-centeredness of woke laziness

PVPRODUCTIONS-FREEPIK

“He doesn’t need help. He needs hindrances,” says John Malkovich, playing Valmont in Dangerous Liaisons. Said of someone who needed to try harder, it’s frankly the best remedy for today’s youth whose mantra apparently is “I can’t even.”

It seems like everything stresses them out and gives them anxiety: study, work, interacting with family, Christmas, answering the phone, punctuation. Everything is a mental health issue.

Of course it’s idiotic, but when one has adults — be it media, guidance counselors, HR, parents — irresponsibly giving validation to that idiocy, it just makes it all worse.

Take “bed rotting,” which “involves staying in bed for extended periods — not to sleep, but to do passive activities like eating snacks, watching TV, and scrolling through devices. This trend is most popular with members of Generation Z who may feel burnt out from work, school, family demands, or social engagements.” (“What Is ‘Bed Rotting’? Gen Z’s Newest Self-Care Trend, Explained”; Health.com, July 2023)

Or “depression rooms,” which is a TikTok trend (of course) where young people show off their unmade and dirty rooms because apparently, they’re “sad.”

The problem with all this is that they’re just young kids being lazy, and not only lazy but self-centeredly calling attention to their laziness. And culture being what it is now, anything self-centered is celebrated.

Unfortunately, for those kids, reality always demands a price to be paid: “Bed rotting could start off as self-care to rest but then turn into fewer productive or enjoyable activities, more time on social media, more sleep issues, more social isolation, and lead to more depression,” says Ohio State University’s Dr. Nichole Hollingshead. Furthermore, “spending too much time in bed can disrupt mood, increase stress levels, and interfere with healthy sleep patterns.” It can also “lead to more serious health issues. Patients who consistently sleep longer than eight hours daily may be at increased risk of mortality compared with those who sleep just an hour less each day. Research has also shown an association between long sleep hours and incident diabetes mellitus, cardiovascular disease, stroke, coronary heart disease, and obesity. (“The dangers of ‘bed rotting’: Why spending days in bed is not a healthy way to relax”; MDLinx, July 2023)

As for depression rooms, it’s no surprise that self-centeredly calling attention to it rather than engaging in more positive activities makes it all the worse: Studies suggest that feeling surrounded by chaos can affect mental health. Studies have been consistent in pointing out that cluttered rooms “harms overall well-being” and that “high levels of household disorganization in families led to poor cognitive, behavioral, and communication outcomes among adults and children.” Finally, lower “levels of life satisfaction” (“The Link Between Messy Rooms and Depression”; PsychCentral, May 2022).

Unfortunately, these annoying bits of narcissism haven’t stopped in homes but have gone out to infect even the work environment. Thus, Business Insider (“Top 10 workplace trends on TikTok this year: quiet quitting, bare minimum Mondays, and more”) listed supposed “new” work trends, which are actually just repackaged forms of laziness.

Some nauseating examples: “bare minimum Mondays,” which “refers to taking it easy as you start out the work week,” supposedly to “beat the Sunday scaries, avoid burnout, and establish stronger work-life balance” and include “mornings devoted to self-care and creative work, followed by work condensed into several hours in the afternoon.”

There’s also “acting your wage,” which is “doing your job as written and nothing more — essentially putting in work commensurate with what you’re paid.” And more famously, “quiet quitting,” which involves “dialing it back at work and just doing what’s expected of you — or often, even less.”

Now, if you’re a sane employer who happens to frown on such moronic practices, then prepare to see your workers do “rage applying,” whereby employees fire off “job applications after feeling fed up or overlooked in their current roles” or simply just “underappreciated.”

What’s up with all this? Ross Douthat, a New York Times columnist that writes with “nuance” and “context” (traits which apparently should make liberals have to accept his word), blames the current malaise (or as he calls it, the “culture of narcissism”) on a social media that “entered into a world that was experiencing the triumph of a certain kind of social liberalism, which the new tech subjected to a stress test that it has conspicuously failed” (italics gladly supplied).

Social liberalism here was meant by Douthat as “the more individualistic liberalism that emerged in the 1960s and experienced a second takeoff across the first decade of the 2000s. Its defining features were rapid secularization (the decline of Christian identification accelerated from the 1990s onward) and increasing social and sexual permissiveness — extending beyond support for same-sex marriage to beliefs about premarital sex, divorce, out-of-wedlock childbearing, marijuana use and more” (“The smartphone and the sources of teen despair,” New York Times, Feb. 22, 2023).

We really need ROTC and mandatory military service now.

Anything’s better than this Barbie world.

 

Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Qualities of an excellent training manager

I interviewed a candidate for the job of a training manager. I asked him: “On your first day, what would you consider your number one task?” He said he will review our training calendar and immediately implement the first program on the list. I thought he should have had a better answer. Please advise. — Moon River.

Job interviews are intended to discover the right person for the job. However, it should not be the only basis for selection. Don’t be turned off by one answer. Instead, give him the chance to prove his worth in other things, like answering at least five more questions:

When do you stop employee training?

If a company president doesn’t believe in employee training, then what can you do?

Which is more important — completing a training program perfectly at a high price or imperfectly at zero cost due to budgetary constraints?

What gives you joy when you’re handling a training program?

Aside from training, how do you propose to improve employee performance?

Reviewing a company’s training calendar on the first day of work is not exactly bad. It becomes bad only when it is scrapped without reason, in the absence of a training needs analysis. But then, what’s the correct answer? Aside from onboarding, what should be done by a newly-hired training manager on the first day at work?

My best answer is to meet and greet the training staff after reviewing their 201 folders. Spend some time with the direct reports to understand their situation. After all, you can’t solve a problem without knowing about all the possible resources within your control. Explore and understand all current tasks of the training department.

Find out the importance of training programs in order of priority. Ask their opinion about things pertaining to the department’s objectives. Along the way, ask the five questions that I listed earlier. That way, you’ll get a picture of their challenges and opportunities.

QUALITIES
It’s not enough to limit yourself to asking the most difficult job interview questions. You have to dig deep by defining the desired qualities and characteristics of an excellent training manager and how that person can effectively manage an organization’s employee training and development needs.

This includes all possible skills that are critical for job performance. For this reason, every organization needs an “excellent” training manager who must understand the following:

One, the specific needs of the business. This is often discerned by reconciling the company’s vision, mission and values with the objectives of every training program created and developed by internal stakeholders. This means closely scrutinizing or even rejecting off-the-shelf programs offered by external training providers.

The exception to this is when an organization does not have an internal expert who can develop and deliver such specialized training programs. Another issue is when internal trainers act in a bookish manner, unlike real practitioners, who can help you manage difficult questions by drawing on their experience.

Two, an idea of the difference between process and result. Many times, process orientation must come ahead of results orientation. In lean thinking, if you’re focused on using only the best training process, you’ll come out with the best result, free from waste and defects.

This includes conducting a training needs analysis, recommending the best training solution for poor work performance and measuring the outcome of every training program. This should include finding out how participants implemented the key learnings in their jobs.

Three, the need to go beyond classroom training. Today, almost all training programs can be done online. Many of them are free. They’re also convenient to users who can take them at their own pace, even outside of office hours. There are also many training interventions to help improve employee performance.

They include job cross-postings, immersion programs, special projects, case studies, coaching by internal experts or mentoring by outsiders or volunteers like retired professionals in the same field. In my case, I’ve been a beneficiary of many short-term Japan-sponsored management programs that are free of charge.

Last, the importance of leading by example. An excellent training manager walks the talk. A manager who conducts a leadership program and is revered for leading talent to greater heights would be highly desirable. One of the non-negotiables in a training manager is skill in both oral and written communication, which can be harnessed to persuade the reluctant.

This typically means having flair in delivering presentations, though there is no substitute for knowing the subject matter by heart, to the point where the bulk of the presentation will involve the training manager expounding at length on slides that could contain only two or three words.

As job responsibilities change, the job of a training manager must be redesigned or reengineered so the incumbent can go beyond the confines of employee development and treat it as the continuing process of avoiding obsolescence.

 

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management team. Or chat your workplace questions with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com

The adequacy of proportional regulation

The concept of proportionality in legal systems stems from the need to limit public intervention in the form of rules, sanctions, and oversight to what is needed to achieve the desired policy objectives. For banking, the principle of proportionality means that regulatory requirements must consider not just the size and scale of a bank’s operations, but also an institution’s complexity and risk profile. 

Financial sector policy objectives include financial stability, market integrity and consumer protection.  Proportionality aims at avoiding policies that could distort the financial services market by unduly constraining its development, curbing competition, or limiting the diversity of market participants.  A uniform system may lead to unjustifiable resource burden not just on banks but on the regulators themselves.

A proportionate approach aims to avoid excessive compliance costs or regulatory burden for smaller and non-complex banks that could unduly dampen their competitive positions without a clear prudential justification (Lautenschlager (2017)).

The Bangko Sentral ng Pilipinas (BSP) reported to the World Bank how proportionality is being applied in its supervisory work commensurate with the financial institution’s risk profile and systemic importance.  Simple standards are being applied without compromising regulatory objectives.

The BSP segments banks according to business model and risk profile as either simple or complex.  Universal and commercial banks (U/KBs) are automatically classified as complex.  Thrift banks (TBs) as well as rural and cooperative banks (RCBs) can be considered complex if at least three of the following characteristics exist:  (a) total assets of at least P6 billion, (b) extensive branch network, (c)  non-traditional financial products and services, (d) use of non-conventional business model and (e) with a  business strategy  characterized by aggressive risk appetite and increasing risk exposure.

Corporate governance is calibrated in terms of board of directors composition The management structure of key risk areas such as internal audit, compliance risk, risk governance, operational risk, security risk and business continuity is flexible. Concurrency for certain positions is allowed in simple banks, provided that a designated officer is qualified, and the Board of Directors is more active in these areas.  The risk management guidelines are appropriately modified on the key risk areas:  credit risk, liquidity risk, operational risk, information technology and stress testing.

The BSP has adopted a segmented Basel regulatory framework and differentiated liquidity metrics to support proportionality in banking regulations.  These moves are meant to: promote continuing soundness and stability of the banking system; ensure convergence of regulatory and business objective; allocate supervisory resources efficiently; and lead to broad-based inclusive growth and innovation.

The conceptual framework for proportionality provides clear justification to how our BSP has proceeded for which it deserves applause.  Similarly, however, given the characteristics of the Philippine banking industry, is the simple dichotomy between simple and complex sufficient? 

The Philippine banking sector is dominated by several large domestic banks.  Forty-six U/KBs hold over 94% of bank assets, of which 60% are held by the top five banks (all domestic).  Foreign bank subsidiaries and branches hold seven percent of bank assets.  There are about 500 small TBs and RCBs.

In a paper by the Financial Stability Institute, it noted the need to achieve a common understanding of the pros and cons of the varied proportionality approaches that have been adopted by different jurisdictions. “Against this background, considerations could be given to adopting a categorization (or tiering) approach where banks are grouped into several classes (defined by various criteria); and these categories are used as basis for differentiating requirements.”

To be fair, the tiering challenge will deserve further study especially given the diversity of banking sizes at the smaller category — RBs from as low as P50 million capitalization to P200 million and TB’s from P500 million to P2 billion.  The lower capitalization is quite far from the P6 billion threshold set for complex banks. The concept of proportionality must be well communicated to the assigned banking examiners.

The proportionality debate is not complete without recognizing the social role that small institutions play in facilitating access to credit and financial services by households and small firms, especially in a country with still so many unbanked areas. Excessive burdensome regulation for small banks may damage their competitiveness and undermines the level playing field.

In its 2022 Country Report, the IMF reported that access to finance in the Philippines is significantly lower than comparator systems, with only a third of adults having formal accounts. Digital payments are used much less.  Informal financing among family members is more significant to households than retail banks loans. There are barriers to establishing IT and communication infrastructure for the archipelago of over 7,000 islands.

In devising the proportionality concept, the balance between keeping the regulatory burden to a minimum and ensuring compliance with prudential standards is a delicate one. But in this writer’s view, the bigger banks have a natural aversion to MSME clients and the marginalization of empowered smaller banks catering to the small business category can have negative consequences.  Smaller community banks in a brick and mortar setting still play a critical role and hopefully will be subjected to resource-friendly and cost-efficient regulatory standards.

 

Benel D. Lagua was previously EVP and chief development officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.

Globe cited anew in global index series for ESG practices across its operations

GLOBE TELECOM, Inc. has been included for the eighth-straight year in the global FTSE4Good Index Series for its efforts to implement environmental, social, and governance (ESG) practices across its operations.

In a statement on Wednesday, the telecommunications firm said that businesses included in the index meet various ESG criteria and are evaluated based on their performance in areas such as corporate governance, health and safety, anti-corruption, and climate change. 

The FTSE4Good Index Series, created by global index and data provider FTSE Russell, is used by a wide variety of market participants to create and assess responsible investment funds and other products. 

“Globe’s inclusion in the FTSE4Good Index Series for the eighth consecutive year is more than a recognition, it’s a testament to our enduring commitment to sustainability,” said Globe’s Chief Sustainability and Corporate Communications Officer Maria Yolanda C. Crisanto.

According to Globe, it has taken a stronger position on human rights, diversity, equity, inclusion, and sustainable supply chain this year with its policies.

The company’s human rights policy commitment reinforced its code of conduct to ensure that employees and its stakeholders are treated with dignity and respect. 

“In support of the United Nations General Assembly’s Resolution that access to a clean, healthy, and sustainable environment is a universal human right, this policy commitment reasserts its aim to reach net zero GHG (greenhouse gas) emissions by 2050, take the lead in circularity, among others. The policy also encompasses freedom of expression, digital inclusion, privacy, and children’s rights,” Globe said.

Globe added that its diversity, equity, and inclusion commitment guarantees an embracing workplace. It also continues the commitment to provide equal opportunities and foster a collaborative environment.

“This policy commitment extends to customers, focusing on respect, dignity, and making products and services accessible to a diverse customer base,” it said. 

Meanwhile, Globe said that its updated supplier code of ethics expects suppliers to meet global standards such as the UN Global Compact and Universal Declaration of Human Rights, while the company’s Sustainable Supply Chain Policy commitment focuses on evaluating their sustainability practices before contract awarding as part of its due diligence on suppliers. 

“Aligning our business goals with ESG practices is not just good for the planet but also essential for our future growth. Globe is more determined than ever to continue on this journey, knowing that our actions today shape the world of tomorrow,” Ms. Crisanto said. — Revin Mikhael D. Ochave