House passes measure granting employees pension portability

May 28, 2021 | 12:03 am

THE HOUSE of Representatives sitting in plenary approved a bill proposing to make pensions portable as workers change employers and to introduce investment options for pension account holders.

In plenary session late Wednesday, legislators approved House Bill 9343 or the proposed Capital Market Development Act. The measure was elevated by Committee on Banks and Financial Intermediaries Chairman and Quirino Rep. Junie E. Cua to the floor on May 17.

“House Bill 9343 is approved on second reading,” Valenzuela Rep. Weslie T. Gatchalian, sitting as deputy speaker, said.

The proposed law seeks to broaden the capital markets by addressing deficiencies in the current pension system. The bill hopes to make pensions “fully-funded, portable, more actuarially fair, and stable.”

Workers will be required to have an Employee Pension and Retirement Income (EPRI) Account which they will maintain regardless of job changes. Both the employer and employee are required to contribute to the EPRI account, with employers initially contributing 4% and employees earning above minimum wage 1%. Those at minimum wage or lower pay nothing.

Micro enterprises only contribute to EPRI accounts if the employees have at least three years’ service or if a new hire has an EPRI account.

Account holders will have the option to invest in accredited investment products. In the event no investment choice is indicated, regulators will designate a default investment product or products. An investment manager may be appointed by the EPRI account owner to guide the worker in making investment decisions.

The measure also calls for the establishment of the Capital Market Development Council to steer the reform of the pension system and promote investor confidence and financial literacy.

Economic managers have expressed support for the bill, describing as limited the current law governing pensions, the Retirement Pay Law. — Gillian M. Cortez

HSBC exits US retail banking as part of Asia pivot

May 28, 2021 | 12:03 am

HONG KONG — HSBC announced it is withdrawing from US mass market retail banking by selling some parts of the money-losing business and winding down others, a long-awaited move as the lender steps up a shift in focus to Asia, its biggest market.

Europe’s biggest bank has for years been trying to shrink its presence in some European and North American markets where it has struggled against competition from larger domestic players.

The bank said in a statement late on Wednesday it would exit retail banking for most individual and small business customers but retain a small physical presence in the United States to serve its international affluent and very wealthy clients.

“They are good businesses, but we lacked the scale to compete,” Noel Quinn, HSBC group CEO, said in the statement.

HSBC unveiled in February a revised strategy focused mainly on wealth management in Asia, and at the same time said it was “exploring organic and inorganic options” for its US retail banking franchise.

As part of Quinn’s gameplan that also involved slashing costs across the banking group, the London-headquartered bank has been looking to step back from sub-scale markets and businesses.

HSBC is also seeking to sell its French retail banking operations as part of the same strategy, and has entered final negotiations to sell that business to private equity firm Cerberus, Reuters reported in March.

Citizens Bank, part of Citizens Financial Group, has agreed to buy HSBC’s east coast personal and small business banking business including 80 branches, and Cathay Bank, a unit of Cathay General Bancorp, has agreed to buy its west coast business including 10 branches, according to HSBC and separate statements from the two US-headquartered banks.

“These transactions, whilst very small in the context of HSBC group, should contribute to streamlining the group,” analysts at Jefferies wrote in a note on Thursday. They added, though, that the bank is expected to still face some investor pushback as it is not completely exiting US retail.

HSBC said it expected to incur pre-tax costs of $100 million connected with the transactions, after which it does not expect to generate a significant gain or loss.

HSBC’s US wealth and personal banking business made a loss of $547 million in 2020, according to the bank’s annual results, versus a $5 billion profit in Asia, primarily from Hong Kong, its most profitable market.

Its global banking and markets division, which includes its investment banking and large corporate businesses, made a profit of $573 million in the United States in 2020.

HSBC expanded into US retail banking in the 1980s as part of a broader strategy to diversify its geographical focus.

However, it has been trying to walk back on this for more than a decade, and in 2011 announced the sale of nearly half of its then 470 US branches, mostly in upstate New York, and also its profitable US credit card arm.

The bank currently has a US network of 148 branches. — Reuters

Nestlé ramps up efforts to address climate change

May 28, 2021 | 12:03 am

NESTLÉ Philippines, Inc. is stepping up its efforts to address climate change, citing initiatives in cutting greenhouse gas (GHG) emissions and promoting regenerative agriculture to achieve its net zero target not later than 2050, its top executive said on Thursday.

“We are accelerating our efforts to address climate change in the country. For the next five years, we have set the course towards net-zero with incremental efficiency improvements, investing in regenerative agriculture, manufacturing and packaging, to name a few,” Nestlé Philippines Chairman and Chief Executive Officer Kais Marzouki said in his keynote speech during BusinessWorld Virtual Economic Forum 2021: Special Edition.

He said that the firm has lowered GHG emissions in its factories by 40% since 2010, translating to a reduction in greenhouse gases emitted by 23,000 cars per year.

Mr. Marzouki said a number of the company’s operations, including three Luzon factories and its Makati office, are now fully running on renewable energy.

He also talked about how Nestlé’s coffee brand Nescafé, which uses Robusta coffee beans in its products, practiced local sourcing.

“As the biggest buyer of coffee produce in the country, we prefer to source our raw materials locally… By doing so, we support our farmers while we promote the planting of more crops which absorb GHG emissions and reduce carbon in the atmosphere that benefit and support the local green economy,” the Nestlé official said.

Nestlé has partnered up with Mindanao-based Robusta coffee farmers who are learning about regenerative agriculture and sustainable coffee production.

The firm earlier said that it expects its Nescafé brand to fully source its coffee through responsible means by tracing it back to an identified farmer group and verifying the product with independent groups.

Earlier this month, the company said that it was working towards its net zero emissions target by reducing virgin plastics consumption by a third and cutting GHG emissions in local operations by 30% by 2025, among others. — Angelica Y. Yang

National Artist for Visual Arts Arturo Luz, 94

May 28, 2021 | 12:03 am

National Artist for Visual Arts Arturo Luz — FACEBOOK.COM/NCCAOFFICIAL/PHOTOS

NATIONAL Artist for Visual Arts Arturo Luz passed away on the evening of May 26 at the age 94, his daughter Angela Luz announced on social media.

“…He enriched our lives with his art, with his incredible talent and his genius. As a father and a grandfather, he was simply the best. He was the most kind and generous human being. And as a husband to my mother, he was perfect. He will be terribly missed, but will never be forgotten. His legacy will live on, and will last forever,” Ms. Luz wrote in a Facebook post.

A painter, sculptor, and printmaker, Arturo Luz was a founding member of the modern Neo-Realist school in Philippine art, according to Artnet.com. He was the founding director of the Metropolitan Museum of Manila in 1976, holding the position until 1986.

“[Mr. Luz] established set principles in museum work informed by his unique minimalist aesthetic,” a tribute on the Metropolitan Museum Facebook page reads. “Just like his art, his curatorial work espoused a sharp and polished finish, mounting a total of 108 exhibitions in 10 years.”

“A prolific artist who helped develop and propel art since the 1960s, Arturo Luz is a true luminary in Philippine art and its history, whose influence is deeply felt until today,” said the Met.

Mr. Luz was also the first executive director of the Design Center of the Philippines, serving for 14 years after his appointment in 1973.

He established the Luz Gallery in 1960, and by doing so “professionalized the art gallery as an institution and set a prestigious influence over generations of Filipino artists,” said the National Commission for Culture and the Arts (NCCA).

“We mourn a huge loss with the passing of one of the Philippines’ great modern artists but we will forever be grateful for the creative legacy that Arturo Luz has bequeathed the Filipino nation.”

Born on Nov. 20, 1926, Luz studied Fine Arts at the University of Santo Tomas, then took further studies at the Art School of the Brooklyn Museum in New York, and at the Académie Grade Chaumière in Paris. He also received a diploma from the California College of Arts and Crafts in Oakland in 1994.

He participated in numerous international shows including the Philippine Cultural Exhibition in New York (1953), Arte de America y España (1963), the 11^th São Paolo Biennial (1971), the Tokyo International Print Biennial (1974), and the 8^th British International Print Biennale (1984).

He was famous for creating geometric artworks. His mural titled Black and White is displayed at the lobby of the Cultural Center of the Philippines’s Bulwagang Carlos V. Francisco (Little Theater). Many people are familiar with his sculptures which can be found in public spaces like the plaza in front of the Ayala Museum in Makati, and the stainless steel cube in front of the Benguet Mining Corporation Bldg. in Pasig.

Other works are part of the National Museum of the Philippines’ collection of National Fine Arts, including seven outdoor sculptures and a pair of burlap paintings.

“We will miss Mr. Luz whose presence has loomed large in shaping Philippine modern art and has been kind to our institution,” the National Museum of the Philippines wrote on Facebook.

In 1997, Mr. Luz was recognized as a National Artist for Visual Arts, the highest national recognition given to Filipino artists in the Philippines.

Preparations for his state funeral are underway and details will be announced shortly, said the NCCA. — MAPS

Amazon brings James Bond, Rocky to fight Netflix with $8.5-B MGM buy

May 28, 2021 | 12:02 am

AMAZON.COM, Inc. will buy MGM, the fabled US movie studio home to the James Bond franchise, for $8.45 billion, giving it a huge library of films and TV shows and ramping up competition with streaming rivals led by Netflix and Disney+.

The deal aims to bolster Amazon’s television-focused studio with new and historic filmmaking from MGM, which has snapped up lucrative series including Rocky and Tomb Raider since its founding in 1924.

Streaming video helps the world’s largest online retailer draw people to subscribe to Prime, a club with fast shipping, and to shop more once they’re members. Privately-held MGM, or Metro Goldwyn Mayer, also owns the Epix cable channel and makes popular TV shows including Fargo, Vikings, and Shark Tank.

Jeff Bezos, Amazon’s founder, laid out the rationale for the deal at the company’s annual shareholder meeting on Wednesday.

“MGM has a vast, deep catalog of much beloved intellectual property (IP),” he said. “With the talented people at MGM and the talented people at Amazon Studios, we can reimagine and develop that IP for the 21^st century.”

Mr. Bezos said it was “premature” to name Amazon Studios as the fourth pillar of the company after its seller marketplace, cloud division, and Prime, but it was working toward that milestone. More than 175 million Prime members watched content on Amazon in the past year, and streaming hours were up 70%, he said.

July 5 — the day Amazon was incorporated in 1994 — will be the date long-time cloud chief Andy Jassy takes over as CEO, Mr. Bezos said.

Amazon’s Prime Video faces a long list of rivals including Netflix, Inc., Walt Disney Co.’s Disney+, HBO Max, and Apple, Inc.’s Apple TV+. The companies have increased spending and expanded in international markets, capturing the pandemic-led shift to binge-watching shows online.

To stay competitive, Amazon has also courted fans of live sports and picked up licenses to stream games, boasting a long-term deal with the National Football League that was estimated to cost about $1 billion per year.

The proliferating streaming services are scrambling for content libraries and brands they can expand. Analysts have said this is a big motivation for another round of consolidation of media properties after a brief hiatus during the pandemic.

“With new entrants to streaming from all the major studios and TV networks, Amazon has to increase its commitment to video or risk losing engagement,” said Jim Nail of research firm Forrester.

Underscoring the trend toward consolidation, AT&T, Inc. announced a $43-billion deal last week to spin out its WarnerMedia business and combine it with Discovery, Inc., one of the most ambitious yet in the streaming era.

Amazon’s Hollywood studio purchase is a first for a big US tech company and could spark further interest in Silicon Valley, a source familiar with the matter said.

The acquisition is Amazon’s second-biggest after Whole Foods Market, which it bought for $13.7 billion in 2017.

At almost $9 billion, the lofty price is about 37 times MGM’s 2021 estimated EBITDA — or almost triple the enterprise value-to-EBITDA multiple that Discovery’s deal implied for AT&T’s content assets — according to Reuters Breakingviews.

At the same time, Amazon posted its fourth consecutive record quarterly profit in April.

MGM started a formal sale process in December, when it was estimated to be worth about $5.5 billion. Morgan Stanley and LionTree advised MGM on the deal.

The deal will provide fuel for the Seattle company’s critics in Washington who complain it is already too big and powerful, but experts said the deal poses few classic antitrust concerns.

LUCRATIVE FRANCHISE RIGHTS
Amazon has picked up Academy Awards over the years and slowly moved from art-house fare toward content with wider appeal. The MGM acquisition accelerates that move, giving it rights to James Bond, one of the most lucrative franchises in film history that’s earned nearly $7 billion at the box office globally, according to MGM.

Other classic films in MGM’s library include RoboCop, Moonstruck, and The Silence of the Lambs.

The potential to mine this intellectual property, by making new content based on popular characters, will help Amazon draw viewers to Prime, two former Amazon executives told Reuters.

MGM also licenses content for video games, which could benefit Amazon’s development efforts in that area.

Still, Amazon efforts to profit off the library won’t be easy, or cheap.

In many cases, MGM’s content is tied up in multi-year deals with television networks, the former Amazon executives said. Amazon cannot simply air MGM’s reality show The Voice, for instance, which contractually is in the hands of NBC.

Bringing a new installment of the James Bond saga online instead of in theaters would be a particularly difficult task, the sources said. The terms under which MGM acquired the franchise leave control in the hands of the Broccoli family, the Bond films’ producers.

Barbara Broccoli and Michael G. Wilson of Eon Productions said in a statement, “We are committed to continuing to make James Bond films for the worldwide theatrical audience.”

News of the acquisition followed quickly on the upcoming return of Jeff Blackburn, Amazon’s former senior vice-president overseeing content and M&A, who had left early this year.

Incoming Amazon CEO Mr. Jassy had particular trust in Mr. Blackburn after decades at Amazon together, hoping he might shepherd a complicated merger, the sources said. — Reuters

POEA once more extends deadline to file reports on welfare of deployed workers

May 28, 2021 | 12:02 am

THE Philippine Overseas Employment Administration (POEA) has once again extended the deadline for recruitment and manning agencies to submit monitoring reports on their overseas-deployed workers.

In POEA Advisory No. 62, the agency said the new deadline is now June 20. The advisory applies to Philippine Recruitment Agencies (PRAs) and Licensed Manning Agencies (LMAs), which must report to the Overseas Filipino Worker (OFW) Welfare Monitoring System (OWMS).

“In view of the continuous requests received from the PRAs, LMAs, and industry organizations and associations, the deadline to create and/or update the welfare records in the OWMS of all OFWs onsite (workers) and seafarers onboard is hereby further extended until 20 June 2021,” according to the advisory.

The first deadline extension lapsed on April 30. The original deadline was March 31.

Submission of OFW welfare monitoring reports is required under the Migrant Workers and Overseas Filipinos Act of 1995.
The POEA said failure to submit the reports will trigger possible administrative sanctions. — Gillian M. Cortez

Employee experience a top priority

May 28, 2021 | 12:02 am

“Loyal employees in any company create loyal customers, who in turn create happy shareholders”

— Richard Branson,
founder of the Virgin Group

WORK-from-home (WFH) arrangements have truly transformed how employees got through their day-to-day tasks. This is supported by countless of anecdotes about the challenges faced by employees as well as their managers, such as employee on-boarding, talent development, coaching, and collaboration on projects.

In fact, there has been mixed findings on the impact of WFH on worker productivity. For instance, a University of Chicago survey of individuals indicates that most respondents who have adopted home working practices reported higher productivity than their expectation before the start of the pandemic; while another study in Japan showed that the productivity of employees adopting the home working arrangement during the COVID-19 pandemic is, on average, 30–40% lower than that in the office. Another study in the US among small and medium-sized firms reported a decrease in productivity of about 20% on average, as revealed in a paper by the National Bureau of Economic Research (NBER).

Customer experience likewise suffered because of WFH. I’m almost certain that readers of this article have experienced a breakdown of customer service from their supplier, who reason that most of their staff are working from home, bogged down by poor internet connection and distracting home environment.

Even most employees now do not like their WFH experience. What was initially thought by many as a dream job of working from home in one’s pyjamas has not turned into something dislikeable. More than half of the respondents in a survey conducted by Martec Group in the US said that they “dislike” working from home.

No wonder why 92% of human resource leaders in the US set employee experience as top priority in 2021 according to recent survey held by isolved and published in Forbes. Employee experience is the employee’s perceptions about his or her journey through all the touchpoints at a particular company, from hiring, onboarding, engaging, performing, rewarding, developing, to departing.

A Gallup research shows that the employee experience matters because all of the individual moments of an employee’s experience play a role in how a worker feels about an employer’s purpose, brand and culture, which directly affect employee engagement, retention, and performance. Hence, it is directly linked to customer experience — happy employees equal happy customers.

So how can we make employee experience a “happy” one? Technology and people managers play key roles here.

Using collaboration tools, videoconferencing platforms, and employee engagement apps can do wonders, if properly deployed and used in companies. A reliable internet connection is a must to ensure uninterrupted and seamless communication among colleagues and to customers. Increasingly, small and medium businesses in the Philippines scores the lowest in Asia Pacific for WFH preparedness, according to a recent IDC study, citing “reliable network connectivity as a concern when supporting remote working.”

Another important factor in ensuring satisfactory employee experience are the people managers themselves. They need to acquire skills on how to effectively manage remote workers. They need to effectively plan for virtual meetings and catch-up sessions with employees, maintain effective lines of communications, and learn new techniques to measure performance. Virtual coaching skills is a key competency that managers need to develop in order to hep their employees through the stress of working from home.

Employee experience, indeed, should be a top priority of organizations, alongside customer experience in this time of WFH arrangements. While countries and organization race to have their citizens and employees vaccinated in order to return to work in the office setting, WFH will be a permanent set-up for a lot of jobs. Therefore, companies need to constantly revisit their employee experience.

It pays to have happy employees.

Reynaldo C. Lugtu, Jr. is CEO of Hungry Workhorse Consulting, a digital and culture transformation consulting firm. He is the Chairman of the Information and Communications Technology Committee of the Financial executives Institute of the Philippines (FINEX). He is Fellow at the US-based Institute for Digital Transformation. He teaches strategic management in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Ginebra San Miguel’s profits soar 120% due to advertising campaigns

May 28, 2021 | 12:02 am

GINEBRA San Miguel, Inc. (GSMI) on Thursday said it posted a 120% increase in net income to P1.04 billion in the January-to-March period, compared with last year’s P474 million as advertising campaigns helped the company’s sales volume grow.

“Our continuous efforts to invest in strengthening Ginebra San Miguel’s brand equity, and build a deeper connection with consumers, carried us through these uncertain times,” GSMI President Ramon S. Ang said in a statement.

The company focused on sustaining the brand equity of Ginebra San Miguel, Vino Kulafu, and even put GSM Blue in the limelight.

It added that its flagship advertising campaign titled “Bagong Tapang sa One Ginebra Nation” helped volumes improve by a record 29% from last year.

Sales grew 52% year on year to P11.34 billion.

The company produces gin Ginebra San Miguel and distilled spirits, which include GSM Blue Light Gin and GSM Blue in Mojito, Margarita and Gin Pomelo, Ginebra San Miguel Premium Gin, Antonov Vodka, Don Enrique Mixkila, Anejo Gold Rum, Primera Light Brandy, and Chinese wine Vino Kulafu.

The spirits segment of San Miguel Food and Beverage, Inc. said its operating income also soared by 88% year on year to P1.3 billion.

“Complementing our strategy of leveraging on the strength of our brands, was a well-coordinated, quick return-to-trade strategy, upon the easing of ECQ (enhanced community quarantine) and implementation of general community quarantine,” Mr. Ang said.

The company saw a 65% profit increase in 2020 to a record P2.76 billion, while consolidated revenues went up by 25% to P36.2 billion despite liquor bans amid the quarantine.

“We also made our products more accessible to more consumers, with deliberate efforts to expand our distribution coverage in high-potential areas, even as restriction measures varied across the country,” Mr. Ang said.

GSMI produced 70% ethyl alcohol which it distributed to health facilities and government units for free during the early months of the pandemic. It was able to produce 1.3 million liters of San Miguel Ethyl Alcohol by the end of 2020, delivered to nearly 3,700 entities across the country.

Shares of GSMI went up by 3.7% or P2.7 on Thursday to close at P75.60 each. — Keren Concepcion G. Valmonte

Stuff to Do (05/28/21)

May 28, 2021 | 12:01 am

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Gallery relaunches with Alcuaz exhibit

ART LOUNGE Manila is relaunching in its new space at The Podium with the exhibit “Federico Alcuaz Unveiled: Select Works from the Alcuaz Family Collection.” In celebration of what would have been the National Artist for Visual Art’s 89^th birthday, the Alcuaz family jointly presents the exhibition which features works representing almost all the decades of his artistic career. The exhibit runs until June 6, and can also be viewed online at https://artspaces.kunstmatrix.com/en/exhibition/6560031/federico-aguilar-alcuaz-u-n-v-e-i-l-e-d. It is co-presented with the National Commission for Culture and the Arts. Art Lounge Manila is located at the Podium, Ortigas Center, Mandaluyong City. For inquiries and viewing appointment, send a message to 0977 -8398971, or 0998-9937968, or send an e-mail to artloungemanila@gmail.com. For more details visit https://artloungemanila.com.

Book talk tackles Pilar Méndez’ Los mares de la canela

INSTITUTO Cervantes de Manila has been organizing online seminars on various topics linked to the cultural relations between Spain and the Philippines, including a series of talks dedicated to contemporary Spanish authors who have written novels featuring the Philippines. The series of literary talks resumes with the book presentation of Pilar Méndez’s Los mares de la canela on May 29, 6 p.m. The novel’s setting moves between the Spanish region of Galicia, the island of Kulangsu in China, and the city of Vigan in the Philippines. This is the first novel published by Pilar Méndez Jiménez, a career diplomat who is currently the Spanish Ambassador in Vietnam. In this book presentation, she will be interviewed by the Director of Instituto Cervantes de Manila, Javier Galván. To attend, the following link will be available 15 minutes before the event: https://zoom.us/j/96691945094.

Estancia mall to hold four-day sale

ENJOY an end-of-month shopping spree at Estancia’s upcoming four-day sale from May 28 to 31. Participating brands include Avocadoria, Barenaked Sugaring Salon, Buffalo Wild Wings, Fino Leatherware, GNC, Happy Lemon, James & Daughters, Jipan Café & Bakeshop, Johnson Fitness, Lock & Lock, Luna Jewelry by Drake Dustin, Motorino Pizzeria, Motostyle, Naughty Nachos, Onezo Tapioca, Pancake House, Pet Express, Shadows & Patterns, Sigekiya Ramen, Skin Station, Toys R Us, and Uniqlo. For more information, visit Estancia’s official Facebook page.

UNIQLO holds 9^th anniversary sale

UNIQLO opened its first retail location in the Philippines in June 2012 at the SM Mall of Asia. Since then, the Japanese retailer has expanded its presence in the country to 65 stores nationwide. To celebrate this occasion, UNIQLO will reward its customers with novelty items and exclusive offers. For every purchase worth P3,000 from any UNIQLO store and online, customers will get one free gray AIRism Mask pack. They are available from small to large sizes at physical stores and medium at its online store. Customers must have their UNIQLO App Membership ID scanned at the store to claim it. The promo is valid from May 28 to May 30. Selected items will be on sale. For a minimum purchase of P2,500 at the UNIQLO Manila Global Flagship Store at Glorietta 5, customers will receive one stamp card with rewards from partner merchants. Each card entitles customers to a free one-week trial pass at Anytime Fitness and a waived joining fee if they enroll at the Glorietta 5 branch, a buy-1-take-1 promo of Cold White Brew at Bo’s Coffee, and P200 off for the Fully Booked discount card. The promo is valid at branches located in Glorietta Mall. Once customers fill their stamp cards completely, they are qualified to receive an exclusive UNIQLO Manila tote bag. They must show their stamp card and the UNIQLO receipt when redeeming at partner merchants. Customers will receive their tote bag upon presenting the completed stamp card from May 28 to Aug. 3 at the Flagship Store. For more updates, visit UNIQLO Philippines’ website at uniqlo.com/ph and download the UNIQLO App via Google Play Store or Apple Store.

PINTIG, A Percussion Festival online

THE CULTURAL Center of the Philippines (CCP) and the Percussive Arts Society Philippines present PINTIG, A Percussion Festival, which will be held online from May 28 to 30. Percussionists and drummers from around the world will come together for a music festival that highlights percussion and drum instruments. Performances are scheduled at 7:30 p.m. nightly during the three-day festival. These will be streamed via the CCP Office of the President Facebook Page (http://facebook.com/ccp.officeofthepresident).

Improving an appraisal system without creating resentment

May 28, 2021 | 12:01 am

I was pirated from a business process outsourcing company (BPO) to head the human resource (HR) department of a medium-sized factory. During my first two months, I encountered policies and practices that I found unnecessary and unproductive. Top of my list is the perfect attendance award and the 15-minute grace period before the workers are recorded as tardy. May I have your insights on this? — Blue Whale.

A parish received a small gift box, which included a card that read: “Enclosed you will find a check for $5,000 to be used as a memorial for….”

The person who sent it forgot to sign the note and to enclose the check. There were no further details except for one clue. The card had a gold tint on the back with the words “Published by the Alzheimer’s Foundation.”

We often forget about important, basic things, like the rationale behind the policies you mentioned. It could be industry practice or a well-entrenched tradition observed by management since the company was established. The best approach, therefore is to rediscover and to understand why these policies are in place.

This isn’t difficult. All you have to do is to talk to the old-timers and dig deeper by looking at the records, if any.

Don’t rock the boat yet. Study it very carefully before changing anything. A long-time practice, in place say for five years, could be difficult to change unless you find a convincing legal reason to overturn it. Much also depends on whether a union negotiated those rules in collective bargaining.

APPRAISAL SYSTEM
Instead of focusing your attention on these entrenched policies, the best that you can do is review the performance appraisal system. Make it robust and objective. Establish your priorities. Take your cue from top management, but announce your intent to review the current system to make it easier and more practical for everyone to use.

The performance evaluation system is often viewed as an exercise in futility, not only by line supervisors and management but workers as well. Most supervisor would have difficulty summarizing a worker’s performance over a year into a series of check marks and brief sentences.

Most Filipino line leaders would prefer to give average ratings to avoid making unpopular decisions. The net result is that these supervisors don’t like employee reviews.

As soon as you got the go-signal from top management to review the appraisal system, focus on those issues that could give you instant success. The items that follow will help you do that towards attaining the maximum benefit for HR and the whole organization:

One, change the frequency of appraisals from one year to quarterly. Instead of waiting a year to evaluate the workers’ performance, make it a quarterly routine. As soon as they become comfortable with the increased frequency, make it a monthly event. This will be the cue for everyone to stay on their toes.

Two, use technology to monitor daily performance. There’s a lot of new software that can help management track worker performance, sometimes almost in real time. Accurate data can give the system an air of objectivity and eliminate the need for leaders to manually intervene.

Last, improve the format or the assessment form. If you don’t have a technology budget and must remain with a manual appraisal set-up, the next best thing is to improve the evaluation form. Many of these are poorly designed and contribute a great deal to the stress experienced by executives that use them.

GROUP DISCUSSIONS
I know how a newcomer feels in these situations. You want to make your presence felt, but while ruffling the fewest feathers possible. Focus on the low-hanging fruit. There are things that can be easily changed without generating resentment from those who might be adversely affected. To soften any impact of the changes you are planning, consult all department managers and note their concerns.

Conduct an informal survey among your colleagues. Schedule a focus group discussion facilitated by an external consultant. This is imperative to avoid having the results being tainted by office politics. Don’t forget to take into consideration the personality of each department manager, any one of which could make it difficult for you to do your job. You may also want to anticipate all possible issues that may arise from staff.

Discuss the result with your CEO and agree on your proposed solutions. Take the time to do the job right. This is something that should not be rushed. If and when you obtain buy-in from the department managers, the next thing to focus on is an employee morale survey, which can be done every two years.

Bringing all workers and their line leaders to their full potential doesn’t end with a formal evaluation process. In general, the extent of your contribution will depend much on how you successfully reconcile the interests of labor and management while promoting the principle of meritocracy across the organization.

Have a consulting chat with Rey Elbo on Facebook, LinkedIn, or Twitter or you can send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

MORE sees ‘unimpeded’ power delivery in Iloilo after Supreme Court ruling

May 28, 2021 | 12:01 am

RAZON-LED MORE Electric and Power Corp. said the Supreme Court’s decision upholding its authority to distribute electricity in Iloilo City would make its work “unimpeded” in the area.

“This decision is very much welcome so we could concentrate on the operations of MORE Power in delivering the best services to the consumers of Iloilo City. It gives us the assurance that what we are doing here in Iloilo City will be unimpeded as far as the constitutionality issue is concerned,” MORE President and Chief Operating Officer Roel Z. Castro told BusinessWorld in a text message on Thursday.

He added that the firm was “very happy” that the court affirmed its previous decision declaring that two provisions of Republic Act No. 11212 or the law granting MORE a franchise to operate a power distribution system in Iloilo are within the bounds of the law.

Section 10 of R.A. 11212 allows MORE to exercise the power of eminent domain as needed for the “efficient establishment, improvement, and maintenance of its services and acquire private property.”

Section 17 authorizes Panay Electric Co., Inc. (PECO) to operate the existing distribution system in its franchise until MORE completes its own distribution system within two years.

In an 18-page document posted on its website this week, the Supreme Court said that it had no reason to change its September 2020 ruling, which upheld the validity of provisions of the law for MORE to take over power distribution assets in Iloilo City.

“After a careful review of the arguments raised by PECO, the Court finds no reason to depart from its Decision dated September 15, 2020,” the court said in a decision shared on May 25.

The court said PECO, which has been the electric provider of Iloilo for more than 90 years but whose legislative franchise expired in January 2019, asked the court to take a second look at the legal implications of its earlier decision.

“In its motion for reconsideration, PECO faults the Court in allowing the expropriation of its distribution system for the same public purpose it was already devoted to. While PECO concedes that its previous legislative franchise allows expropriation of its assets and distribution system upon the termination of its franchise, it also asserts that this power may be exercised only by the government and its political subdivisions, and not by private entities such as MORE,” the decision read.

PECO’s argument did not convince the court.

“The exercise of the right to expropriate given to MORE under its franchise is a delegated authority granted by Congress. The restrictive view that expropriation may be exercised by the State alone, without any consideration for the State’s authority to delegate its powers, cannot be upheld,” the High Court said.

MORE, led by businessman Enrique K. Razon, Jr., was granted a 25-year franchise in February 2019 to provide power to Iloilo City, replacing PECO.

BusinessWorld reached out to PECO, which has not yet replied as of press time. — Angelica Y. Yang