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BSP instructs lenders to prepare contingencies as virus spreads

THE BANGKO SENTRAL ng Pilipinas (BSP) is urging financial institutions to carry out measures such as alternate work arrangements to safeguard employees against the coronavirus disease 2019 (COVID-19) outbreak while making sure financial services are available to the public.

In a memorandum issued on March 11, BSP Deputy Governor Chuchi G. Fonacier said BSP-superviced financial institutions (BSFIs) as well as operators of payment systems (OPS) should implement their response plans and mechanisms in view of the rising cases of COVID-19 in the country.

“Trigger events such as the current COVID-19 epidemic, should allow for alternate work arrangements or remote access capabilities, as may be deemed practicable and/or necessary by the above-captioned institutions,” Ms. Fonacier said.

“Clear communication protocols covering all relevant internal and external stakeholders should also be implemented,” she added.

The BSP closed both its main office in Manila and its Security Plant Complex (SPC) in Quezon City from March 12 to 13 to facilitate disinfection of its facilities as a precautionary measure against the epidemic spread.

“The BSP, however, shall continue normal open market and PhilPass settlement operations as well as the servicing of cash withdrawals by banks at the SPC,” the central bank said in a statement.

BSP Governor Benjamin E. Diokno has also opted to go on self-quarantine alongside some other top officials of the country including Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia.

“I am glad to share that I am well and not manifesting any symptoms, although I also decided to go on self-quarantine as a precautionary measure,” Mr. Diokno said in a statement on Thursday.

Earlier, Lyn I. Javier, BSP managing director for policy and specialized supervision, told BusinessWorld they have ordered banks to implement business continuity plans in cases like this.

Some banks shared the contingency plans in light of more confirmed COVID-19 cases in the country.

Philippine National Bank said they have opted for some digital alternatives to face-to-face interactions. The Tan-led lender also said they have successfully tested some work-from-home arrangements and are implementing sanitizing efforts.

“This includes having multi-site deployment plan in place to mitigate concentration risk and contagion. We also leverage on technology, such as audio and video conferencing facilities,” PNB said in an e-mailed response.

The bank assured they have a business continuity plan (BCP) and said they will keep their digital banking channels as well as automated teller machines (ATMs) available for customers’ transactions.

Likewise, Security Bank Corp. said they have a BCP to help them quickly recover and resume operations in the events that could cause disruptions such as the COVID-19 outbreak.

“Our BCP covers data backup and recovery of all vital systems, implementing a split work arrangement where members of critical units have been segregated to different approved locations,” the lender said in an e-mail.

The bank said their head office as well as satellite offices have been restricted to outside visitors from Mar. 12 to 13.

“[M]eeting with guests and visitors will be limited to identified locations to reduce the risk of exposure and mandatory body temperature screenings are conducted at all entry and exit points,” the bank added.

As of press time, there are 49 confirmed cases of COVID-19 in the Philippines, with two fatalities reported. — Luz Wendy T. Noble

Plays, concerts canceled on COVID-19 concerns

IN LIGHT of the concerns around the coronavirus disease 2019 (COVID-19) which has led the Philippine government to declare a state of public health emergency, many performances and entertainment events have been postponed or canceled. Others will push through, but with stringent hygiene arrangements.

While the gala night of the 15th Israeli Film Festival, scheduled for last night, was canceled, the Embassy of Israel said that other film screenings will still push through at Cinema 3 of Bonifacio High Street Cinemas.

“We are discouraging from attending the film screening those who have been abroad for the past 14 days and those whose health are at risk,” said the embassy in a statement.

“Rest assured, the Bonifacio High Street Cinemas is taking precautionary measures to ensure that the mall and cinema vicinities are routinely sanitized and disinfected. Temperature checks in all entrances have also been in place. Soap and water and hand sanitizers are also provided.”

On the other hand, The Cultural Center of the Philippines’ Arthouse Cinema screenings on March 12 and March 14, have been called off.

Meanwhile, the Philippine Philharmonic Orchestra has postponed its March 13 concert at the Cultural Center of the Philippines. This after it had replaced its featured performer, Japanese violinist Ryu Goto who had canceled all his Asian performances because of the coronavirus, with renowned pianist Raul Sunico.

Meanwhile, Memorare, an organization formed to remember those who died during the Battle of Manila in World War II, announced that it is postponing its Battle of Manila Tours.

“Rest assured that once the global and national situation improves, we will definitely continue the tours,” it said in a statement.

The Aegis concert at Resorts World Manila’s Newport Theater on March 26 has been called off.

The Fringe Manila festival of art has announced that all remaining events have been postponed.

THEATER
Several theater companies have announced the cancellation or postponement of their upcoming productions.

The Atlantis Entertainment Group announced that it was cancelling all performances of the musical The Band’s Visit which was scheduled to premiere this weekend. It has also canceled its production of the musical Oliver!

The Sandbox Collective announced that since its venue, the Maybank Theater in BGC, Taguig, had canceled all events and shows this weekend, it would not have performances of its preview for the play Lungs and this weekend’s shows of Every Brilliant Thing.

“These shows will be postponed to another date and we will inform you on our new schedule as soon as it’s available,” it said in a statement.

Also postponed were several of PETA’s performances of Under My Skin this weekend, although the March 15, 8 p.m. show will push through.

Tabing Ilog, which had performances this weekend and on April 18 and 26 at the Dolphy Theater in Quezon City, has been canceled.

Ateneo Blue Repertory’s Next to Normal, with performances this weekend and on March 21 and 22, has also been canceled.

But the show will go on for Repertory Philippines’s Anna in the Tropics at Onstage Theater at Greenbelt 1 in Makati which is opening tonight, thought the traditional pre-show cocktails have been canceled.

The theater company informed attendees that the Ayala Corp. has assured them “that they are constantly cleaning and disinfecting all their malls, including Greenbelt, in their entirety. This includes sanitizing all hand rails, escalators and other surfaces that are frequently touched. They also use UV cameras that have the capacity to destroy viruses.

Those who enter the mall and Onstage Theater will have their temperatures taken with a thermometer gun and those with the slightest fever will not be allowed entry.

Rep explained that as Onstage Theater has a very large capacity, theater goers will be seated with their companion or group, but will be seated at least one meter away from other audience members. It also noted that the theater is constantly being fumigated, and that all the theater seats are cleaned and wiped down after every show.

Alcohol will be provided for everyone’s use at the entrance of the theater, and the theater staff will all be wearing masks.

Axelum profits double last year

COCONUT products manufacturer Axelum Resources Corp. (Axelum)reported doubling its net income in 2019, driven by improved gross margins despite lower revenues.

The listed firm said in a statement yesterday its net income last year jumped 113% to P775.60 million, despite a 10% drop in revenues to P5.30 billion.

The sales decrease was attributed to a global decline in vegetable oil prices, which reduced the company’s average selling rates. But its bottomline was cushioned from its impact due to an improved gross margin of 29% from 23%.

“[The improved gross margin is] a result of on-going efforts intended to leverage on operational efficiencies, streamline processes and optimize production costs,” Axelum said.

Operating expenses clocked in at P297 million, with net income margin rising to 15% from 6% in 2018.

“The year 2019 was a transformational period for Axelum as it transitioned from a private homegrown company into a publicly-listed entity,” Axelum President and Chief Operating Officer Henry J. Raperoga said in the statement.

“We also achieved a record level in terms of profitability despite encountering various headwinds brought about by an overall challenging environment. We were faced with global price volatilities of vegetable-based oil, rising input costs and a stronger peso currency, amongst others. Looking ahead, we are determined to sustain this growth trajectory in 2020,” he added.

Axelum is allocating P600 million for capital expenditures this year, which it will use to expand its distribution channels both locally and overseas, upgrade its production equipment and come up with new products. It is also in preliminary discussions for potential acquisitions.

“From our end, this represents a unique opportunity to further enhance our value-chain, extend our product line, future-proof manufacturing capacity, increase market share and derive additional operating synergies across the business. Hopefully, we can close a good deal within the year,’’ Mr. Raperoga said. — Denise A. Valdez

Unemployment benefits ready for SSS members

SOCIAL SECURITY System is prepared to shell out P660 million worth of unemployment benefits if job losses hit 60,000 at an average of P11,000 in benefits for each qualified member. — BW FILE PHOTO

STATE-RUN Social Security System (SSS) has P1.2 billion in unemployment benefits ready for members who will be laid off by companies affected by the spread of the coronavirus disease 2019 (COVID-19), which is projected to result in 30,000 to 60,000 job losses if the pandemic lasts until June.

Citing a report from the state pension fund, Finance Secretary Carlos G. Dominguez III said SSS is prepared to shell out P660 million worth of unemployment benefits if job losses hit 60,000, at an average of P11,000 in unemployment benefits for each qualified member.

But if the maximum cash benefit will be availed, or equivalent to P20,000 per member, the total amount could reach P1.2 billion, according to SSS Senior Vice- President and Chief Actuary Edgar B. Cruz.

Currently, Mr. Cruz said the state-run pension fund’s cash position is at P21 billion.

“It can well afford to pay unemployment benefits, given that P660 million is just a fraction of the more than P16 billion that SSS paid monthly for members’ pensions in 2019,” the statement read.

According to Mr. Dominguez, the potential layoffs, although temporary, will largely come from tourism industry as well as hotel and airline companies.

“There might be some manufacturing jobs that are going to be affected because of the disruptions in the supply chain. But I just got a message today that imports in China are already picking up,” he said during his meeting with SSS officials.

However, Mr. Cruz said the estimated claims were made considering the number of actual job losses, jobless workers that are members of the pension fund and those who are qualified as well as the average salary credits.

“Even if everything goes down, we will be able to maintain pension benefits and salaries for a little over a month and after that, we will have to start liquidating more liquid assets,” he added.

Latest data showed SSS released P84 million worth of unemployment benefits to 6,907 members as of Oct. 21 last year or two months after it started accepting applications.

Department of Labor and Employment Assistant Secretary Dominique Rubia-Tutay earlier said 47 establishments with 4,416 workers nationwide have implemented flexible work arrangements while 19 businesses with over 300 have resorted to temporary closure to cope with COVID-19 outbreak. — B.M. Laforga

Call me by Your Name

Your Name
Directed by Makoto Shinkai
In This Corner of the World
Directed by Sunao Katabuchi

WATCHED Makoto Shinkai’s Your Name out of curiosity. Everyone hailed the movie like a messiah descended from heaven to unleash upon the world his holy greatness.

Is Your Name the work of a messiah?

Movie opens with a comet streaking across the mesosphere; the comet calves with a bright red chunk smashing into the Earth. Cue opening theme from RADWIMPS.

With Makoto Shinkai in the directing-and-writing chair you expect the standard Shinkai plot — teenage boy (Taki) and teenage girl (Mitsuha, but, really, you could swap in other names) separated by distance, boy wants girl to love him but struggles to say something. Shinkai delivers, but can’t resist adding a gimmick: body swapping.

I enjoyed the body swapping; I enjoy experiencing the normal life of a member of the opposite sex, even if this is a trope as old as Freaky Friday (1972). To his credit, Shinkai weaves in a bit of Japanese folklore — the musubi as metaphor for time, the red thread of fate tangling and unraveling the main characters’ fates together. Complex stuff, until a comet impacts Itomori.

Cue the melodrama and seriousness, the humor hoovered away like so much dirt.

Leads me to wonder: why is this swapping happening to Taki? What is Taki’s interest in Mitsuha, other than mashing her breasts? Why is Taki’s backstory unexplored (we get a brief glimpse of his dad and that’s it?)? Why is the spit-sake ritual at the center of the movie necessary?

Shinkai shrugs and expects you to figure things out with the help of vague hints such as unconscious crying (Taki waking with tears in his eyes). Whether the hints help or not — good luck.

By the end the movie’s plot unravels like a kitten’s ball of twine, patched together with duct tape and positive thinking rather than woven with steady skill.

Which ultimately doesn’t matter. What matters is the honeyed sentimentality clogging the movie like mucus in a phlegmy throat. Shinkai throws everything at the audience, kitchen sink included; he gives new meaning to the word “shameless” — at one point forcing Mitsuha to suspend her elaborate plan to evacuate the endangered town and run up a mountaintop for a sunset face-to-face with Taki. Why? For the melodrama. The feels. The chance to sell you his very last glass of heavily sugared lemonade, for that very last dollar bill in your wallet.

As for RADWIMPS — even the name grates. A band that thinks it’s “rad” when really it plays the same J-pop sorghum found in every other Japanese romcom. They don’t even sound like angry teens, more like lonely geeks caterwauling at their involuntary celibacy.

If you consider this to be Shinkai’s greatest take on romance, if you think Shinkai is at all skilled at romance, I have a bridge in Brooklyn I want to sell you.

Later watched Sunao Katabuchi’s In This Corner of the World — another love story set mostly in wartime Japan. Young Suzu Urano’s hand is given in arranged marriage to court martial clerk Shusaku Houjo; she moves with him to his home in Kure, and attempts to adjust to life her new family as the Pacific War rages far from home.

The romance may sound stereotypical, a honey trap much like Shinkai’s; Katabuchi derails expectations with an arranged marriage, the wedding more like a funeral. Any feelings groom and bride have for each other feel awkward, unnatural, love by fiat rather than feeling.

Suzu may be an amateur artist and dreamer, may at first glance look like one of Shinkai’s syrupy idealists. Eventually Katabuchi makes clear that she’s too much of a dreamer — she first meets her future spouse as a child on a bridge, but interprets the meeting as a kidnapping by scary monster. They escape when she pastes stars on telescope lenses and tricks him into looking; the constellations prompt him to fall asleep. That’s just one of her more harmless fantasies, though as a result the boy she meets grows up to become the husband she’s stuck with.

Childhood fantasy or implied psychological disorder aside, her life is too serene, too disconnected — even as the war comes closer she and her in-laws seem above it all.

If anything, the real conflict in the film is the conflict of belonging. Suzu herself seems alienated from the Houjo family and Kure for much of the film. The Houjo household in turn doesn’t seem to care about the war; they bicker over who picks up rations, who cooks, who does laundry. There are meetings and lectures that no one seems to listen to; Suzu belatedly remembers something she heard at one point, about a delayed-timer bomb, but too late to do anything about it.

Then come the air raids and firesticks, the anti-aircaft flak that Katabuchi depicts as bright paint spattering across a breathlessly blue sky. The innocence, the illusion of peace is shattered; the realities of war arrive at the Houjo household and like a bad guest refuses to leave.

Of course, August 6th, 1945 looms over the household and surrounding town (Kure is next to Hiroshima). Its promised advent informs the film’s leisurely pacing and melancholy tone.

While the film ends on a hopeful note you can’t help but wonder if maybe there’s a touch of nihilism in the message. After all, the nation Suzu knows is gone — the nation that nurtured her family and her marriage now making way for the American occupation. Even the closing credits sketching scenes of a happy family are drawings from a hand lost in the war. Was it worth all that suffering?

One might compare Katabuchi’s film to Isao Takahata’s Grave of the Fireflies — but I contend that they are two entirely different creatures. Grave of the Fireflies was released in 1988 at the end of the Showa era, which had reigned since WWII, for a generation that still remembers the bomb. In This Corner of the World from 2016 is a film for a new generation, with a more feminist focus — the women have more prominent roles on the homefront.

Also different are the pace and overall ideas — Grave undermined the idea of military privilege and Japan’s invincibility simply, directly, with no holds barred. Corner focuses on the dreary task of survival, and the way dreariness eats away at people’s spirits, at the same time celebrating their ability to persist.

Shinkai can stun the eyes with breathtaking photorealism, can engage audiences with fantasy romances, but every movie he makes feels like a fundraiser ending with him on his knees begging for your tears. If anything Shinkai treats his characters, his women especially, as plot devices and cheap fanservice, jiggling breasts, tight jeans, and all. Katabuchi paints a patient portrait of life in wartime Japan, from its mundanity to insanity. Katabuchi never shies away from the harder implications. He doesn’t beg but suggests, leaving everything up to you to observe, analyze, feel. Shinkai is all about the profits, Katabuchi all about the artist.

PRC cancels March, April board exams

Professional Regulation Commission (PRC) logo

THE PROFESSIONAL board exams scheduled for April and the remainder of March have been cancelled to minimize the spread of the coronavirus (COVID-19) infection.

Thousands of would-be test takers across eight board exams were advised by the Professional Regulation Commission (PRC) on Wednesday that it the exams will not go ahead. The PRC will announce the new exam schedules through its website and social media platforms.

PRC said in a statement that the cancellation is “(p)ursuant to Presidential Proclamation No. 922 dated 8 March 2020 declaring a state of public health emergency throughout the country, and the recommendations of the Department of Health (DoH) and Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Disease to prohibit mass gatherings, and to further ensure the safety of the examinees and employees of the Professional Regulation Commission.”

The cancelled March exams are the Qualifying Assessment for Foreign Medical Professionals (March 14); Physician Licensure Examination (March 15–16); Medical Technologists Licensure Examination (March 18–19); and the Licensure Examination for Professional Teachers (March 29).

April cancellations are the licensure examinations for Electronic Engineers and Electronic Technicians (April 1–3); Midwives (April 5–6); Registered Electrical Engineers and Registered Master Electricians (April 14–16); and Pharmacists (April 26–27). — Gillian M. Cortez

Don’t ask employees if they have COVID-19, and other HR tips

Don’t ask employees if they have COVID-19, and other HR tips
featured2

CAN I ASK an employee if he or she has COVID-19? Can I send a sick worker home and require a doctor’s note to return? Should I worry about staff getting the virus from the mail or a shipping container from China?

Those were among the top questions from a webcast Tuesday coordinated by the Society for Human Resource Management to discuss how workplaces should handle thorny issues raised by the new coronavirus. The short answers? No. Probably Not. No.

Roughly 40,000 people joined the call, which featured staff experts from the HR group and Jay Butler, deputy director for infectious diseases at the US Centers for Disease Control and Prevention. Participants included not only HR professionals, but also CEOs, business owners and random people with questions — — showing the hunger for guidance on how employers should navigate a global outbreak.

“It crashed our website for about two minutes; my technology people were freaking out,” said Johnny Taylor, chief executive officer of the 300,000-member human-resources society. “I think it speaks to how much pent-up demand you had for people to get real clarity.”

Now that the virus has infected more than 117,000 people in 100 countries globally, the CDC is moving beyond just trying to prevent the outbreak and is now focusing on mitigation. Businesses have a role to play in that process by taking smart steps to keep their employees healthy at work and making it easier for sick workers to stay home, Butler said.

“The goal of the mitigation is to not overwhelm society with millions of people becoming sick over a very short period of time,” Butler said on the call. “It is indeed very possible that this is a virus that is going to go around the world and infect a majority of people.”

The biggest focus of employers should be preventing person-to-person transmission, Butler said. The virus doesn’t seem to live much more than a day outside of the body even under the most favorable laboratory conditions, and if it were spreading through the mail or via shipping containers, that would likely have shown up in the epidemiological patterns, he said. People should also get the flu shot, not because it will have any protection from COVID-19 (it doesn’t), but because it will reduce the number of people who have to miss work because of the traditional flu, he said.

Alex Alonso, the chief knowledge officer at the Society for Human Resource Management, and Amber Clayton, director of the group’s HR Knowledge Center, also answered some of the more than 20 questions fielded during the hour-long webcast — after more than 2,000 were submitted.

An employer can suggest an employee with visible illness leave the workplace, but should avoid asking too many specifics that might violate a worker’s rights, such as the Americans with Disabilities Act, Clayton said. Employers can set specific guideline for when a worker can return, such as how long it’s been since the last fever, she said.

“The CDC has also recommended that employers not require a doctor’s note at this time because we know that medical professionals are going to be extremely busy,” Clayton said.

Much of the advice from Butler, the CDC disease expert, was also common sense. Companies should advise employees against travel to high-risk locations. Employers need flexible work-at-home arrangements and should consider expanded sick-leave policies so that workers will feel more secure in their jobs if they are ill. Extra caution should also be taken to make sure that no one is stigmatized because of exposure to the virus, Butler said.

In the workplace, encourage frequent hand-washing, wipe down surfaces such as door knobs frequently and keep people farther apart — and by all means, cough into your sleeve, not your hand, Butler said.

“I know that sounds like something our mothers all told us when we were in growing up, but actually, there’s some science behind this approach,” he said. “It’s critically important right now.” — Bloomberg

Insurers face double whammy from coronavirus crisis

LONDON — Having initially brushed off the potential impact from coronavirus-linked claims, global insurers are waking up to the prospect of a double whammy — a sharp rise in payouts at a time of big investment losses.

Because epidemics are excluded from many business insurance policies, the early prognosis was for a low levels of claims. But as recession threatens the global economy along with rising insolvencies, all sorts of companies with trade credit insurance, from airlines to retailers are coming under strain.

Meanwhile, insurers’ investments are coming under pressure.

They manage more than $20 trillion in assets globally but their big government bond holdings are becoming problematic as the threat of recession grows and central banks’ interest rate cuts have sent yields plunging.

COMPANIES STRUGGLE TO PAY BILLS
The $11-billion trade credit insurance market covers the risk that a company’s customers cannot pay for goods or services bought on credit. There was already a rising trend in 2019 in big corporate insolvencies, according to figures from insurer Euler Hermes at the end of the year.

Moody’s expects rising claims to hit three of the world’s biggest trade credit insurers Atradius, Coface and Euler Hermes. The ratings agency cited data from Atradius and Coface showing that for each, nearly 15% of their total net potential exposure is in Asia and Australia, two of the worst hit regions.

The insurers declined to comment, but Atradius said recently it expected corporate insolvencies to grow 2.4% globally in 2020, “largely resulting from the coronavirus outbreak.”

Coface chief executive Xavier Durand told analysts two weeks ago that hotels and airlines in Asia would feel the worst impact, while Euler Hermes saw coronavirus costing $320 billion of trade losses every quarter this year.

The stress could spiral as governments lock down regions or whole countries and if major events such as the Olympics are postponed.

“It’s not a good time for anyone in the credit world,” said Jeremy Shallow, head of specialty at insurer Argo Global.

He added that a possible recession was factored into the firm’s underwriting of trade credit insurance.

The coronavirus outbreak is likely to have a bigger effect on the world economy than the outbreak of Severe Acute Respiratory Syndrome (SARS) some 20 years ago, European Central Bank governing council member Klaas Knot said last month, adding that SARS wiped $40 billion off world equity markets.

The prospect of a global recession was reflected in an index of European insurance shares which has tumbled to 3-1/2-year lows, losing 30% from peaks hit on Feb. 19 before concern about the potential of the deadly virus took hold.

NO FUN OR GAMES AS EVENTS AXED
Trade credit insurers would be most cautious about sectors such as travel and entertainment, according to Bernie de Haldevang, head of credit, political risk and crisis management at Lloyd’s of London insurer Canopius.

Airlines have suffered badly with Norwegian Air laying off staff and cutting thousands of flights and Britain’s Flybe forced to throw in the towel. Hotel groups such as Hyatt, cruise operators like Carnival Corp. and holiday companies including TUI will also see their cash flow crushed.

Travel restrictions to countries such as Italy and Israel will lead to further insurance payouts, while the cancellation of major events like the South by Southwest music and film festival in Texas will add to claims.

Analysts at Barclays warned last week that coronavirus losses for Munich Re were “potentially more material than we thought” after the global reinsurer flagged a €500-million exposure if all the major events it covered this year were canceled.

Munich Re also flagged losses on life insurance policies as the death toll climbs.

In China, where the coronavirus first took hold, a few insurers have taken drastic action by withdrawing credit insurance coverage, insurance broker Marsh said.

INVESTMENT LOSSES
Meanwhile, the investments insurers rely on to pay the claims are unravelling.

US 10-year bond yields have more than halved since the end of 2019. At least half of insurers’ $20 trillion in assets under management will be invested in government bonds, analysts say.

Falling yields require insurers to set aside more capital now for future payments to policyholders, puncturing their solvency levels.

Years of rock-bottom bond yields persuaded insurers to foray into riskier corporate debt — US life insurers had more than 34% of their portfolios in triple-B rated debt in 2018, according to insurance ratings agency AM Best.

Yields on this kind of “junk” rated debt have ballooned as default worries grow.

Increased equity exposure adds to vulnerability — since the sell-off started in earnest on Feb 19, some $11 trillion has been wiped off global stocks’ value, according to Refinitiv Datastream.

Legal & General and M&G are among insurers which have highlighted the dent to solvency ratios.

“The market moves already seen are giving insurers a lot to think about — in particular how their market risk models are coping with the current market stress,” said Colin Tipping, head of insurance investment management — international region at Mercer.

Insurers are generally long-term investors who do not make hasty investment decisions but the next few weeks will be a nail-biting ride.

“If the economic situation deteriorates, they will no doubt be reassessing their portfolios and exposures,” said Ferdia Byrne, insurance partner at KPMG. — Reuters

What to see this week

3 films to see on the week of March 13, 2020 — March 19, 2020

Motel Acacia

A tyrannical Caucasian grooms his Filipino son to take over Motel Acacia which provides shelter to illegal immigrants on behalf of the government. Directed by Bradlew Liew, the film stars JC Santos, Agot Isidro, Jan Bijvoet, and Nicholas Saputra. Variety’s Peter Debruge writes, “Though it delivers on the suspense level, Motel Acacia really ought to have spent a bit more time figuring out what it was trying to say about America — that dimension remains a bit too abstract, ultimately failing to explain why a Filipino demon is doing the country’s dirty work.”

MTRCB Rating: R-13

Bloodshot

AFTER former soldier Ray Garrison is killed in action, the RST Corporation brings him back to life as the superhero Bloodshot. His body is now programmed with nanotechnology for strength, however, the company blundered his memory. Directed by Dave Wilson, the film stars Vin Diesel, Eiza Gonzalez, Sam Heughan, Toby Kebbell, and Guy Pearce.

MTRCB Rating: PG

I Still Believe

THE film is based on the life of Christian music star Jeremy Camp and his journey through love and loss. Directed by Andrew and Jon Erwin, the film stars Britt Robertson, K.J. Apa, and Melissa Roxburgh.

MTRCB Rating: PG

Del Monte Pacific earnings soar

EARNINGS of Del Monte Pacific Ltd. soared 159% to $6.67 million in the third quarter, driven by higher sales across its global operations.

In a statement yesterday, the listed canned fruits manufacturer said it recorded $555.30 million in sales during the third quarter ending January, up 5% year on year. Operating profit also improved 24.60% to $30.19 million.

Del Monte attributed the growth to higher sales in the United States, the Philippines and S&W in Asia. The US subsidiary, Del Monte Foods, Inc. (DMFI), posted 1.50% higher sales at $391.80 million due to higher prices and volumes.

Contributions from operations in the Philippines also climbed 11% to $98.50 million (6% in peso terms), due to higher retail sales in both general trade and modern trade channels.

Year-to-date, Del Monte swung to an attributable net loss of $68.95 million from a net profit of $14.02 million a year ago. This is as its topline slipped 2.10% to $1.49 billion.

Minus one-off expenses, the company would’ve seen a net profit of $27.40 million, 47% up from a year ago. Del Monte recorded a total of $96.4 million in one-off expenses, mainly from closing and selling plants in the US.

“Ongoing transformational initiatives at DMFI are already showing a positive impact on third quarter results, with significant improvements in profitability as well as operational efficiencies,” Del Monte Managing Director and Chief Executive Officer Joselito D. Campos, Jr. said in the statement.

“We are encouraged that the expected cost savings are on track,” he added.

Del Monte also said it hasn’t been affected by the coronavirus disease 2019 (COVID-19) outbreak yet during the period ending January, but it is closely monitoring the situation, especially its threat in fresh pineapples from China.

“In February, the group experienced softer demand and some logistics hurdles in China, but has the flexibility to allocate products to other markets and will continue to expand e-commerce sales. Sales in China account for approximately 3% of group sales,” it said.

“The group is also monitoring its supply chain, primarily in China, so that it can minimise any potential impact on raw and packaging materials, and equipment sourcing. The group will continue to take the necessary precautionary measures to ensure the health and safety of its employees,” it added.

Shares in Del Monte at the stock exchange gave up 40 centavos or 11.11% to P3.20 each on Thursday.— Denise A. Valdez

Six budget tactics on background-checking new workers

We’re having difficulty fact-checking all information and other documents submitted to us by our newly-hired workers. We can’t get the cooperation of the employees’ past employers, their character references, and other institutions. They’re saying we can’t do it under the privacy law. It appears now that we can only do fact-checking through the help of private investigators. Unfortunately, we don’t have a budget for that. What would you advise us? — White Lily.

A farmer bought a horse and was told by the seller that the animal he’s buying had one fault. He likes to stop and eat mangoes. The farmer said: “We’ll that’s all right. I will make sure we don’t encounter any mangoes on our way. Besides, I don’t even have a single mango tree in my farm.”

He put down his money, mounted the horse and started home. On the way, they had to cross a stream. In the middle, the horse sat down and wouldn’t budge. The farmer walked back to the horse dealer and explained what happened. “Well, now you never said nothing about water, river or even a stream.”

The animal trader explained: “If he can’t get mangoes, he sits where the fishes are.”

In many instances, buyers are often told only half-truths, if not white lies by sellers. The same thing can happen to employers who would want to hire new workers right away, even at the risk of hiring people with dubious backgrounds. That’s why it has become imperative for employers to fact-check.

But how do you intend to do background checking of new employees under the Data Privacy Law and with a zero budget for private investigators? That’s perfectly acceptable if you have a low turnover rate and do not hire many employees. Otherwise, fact-checking becomes a full-time job for you and your organization.

SIX LOW-COST TECHNIQUES
In general, using a combination of the following practical techniques should help you discover the truth, save money, and inject a little breathing room into your busy work schedule:

One, read, study, and comply with the Data Privacy Act of 2012. It’s the law that governs the collection and processing of all information pertaining to employee data. According to the website of Villaraza and Angangco, any “employer is a personal information controller under the Data Privacy Act when it is involved in controlling the collection, holding, processing and use of the information of its employees.

“It is required to implement ‘reasonable and appropriate organizational, physical, and technical security measures for the protection of personal data.’ Employers must register with the National Privacy Commission if they employ at least 250 employees.”

Two, require all newly-hired workers to give their written consent. This can be done by requiring the workers to sign an application for employment form and an employment contract in which they vouch for the accuracy of all information they have submitted to you. This authorizes you to verify the same with the concerned character references and institutions.

Note the difference between an application for employment and an employment contract in this context. These documents provide “shotgun” protection for you and at the same time simplify and reduce the number of documents you require employees. Aside from these two “shotgun” documents, be prepared to handle requests by organizations that may require you to have specific consent signed and addressed to it by the new employees.

Three, make a distinction between staff-level hires and officer level. Or between employees holding key positions and non-key positions. “Key positions” here include both management and rank-and-file jobs that perform confidential and sensitive functions related to the company’s trade secrets, product formulas, financial data, compensation, and other related information.

For employees from cooperatives and manpower agencies, you may seek their written guaranty that they vouch for the character and competence of their workers assigned to work for your organization. If the hire is executive or management level, you can seek the endorsement of the head hunter. It’s also advisable that these third-party service providers stand behind their recommendees with an airtight one-strike policy written into your service agreements with them.

Four, verify the employees’ credit history and standing. This is often ignored by employers who think it has nothing to do with the employees’ capacity to perform their jobs. They are partly correct. Unfortunately, what many people don’t know, including employers who are often in a rush to hire people, is the fact that people with bad credit standing are susceptible to committing fraud, theft, gambling, even illegal drugs and other illegal activities.

According to Glassdoor, “(e)mployment background credit checks aren’t necessary for all employees, but they’re strongly advisable, even essential, for those who handle large amounts of cash or other kinds of financial transactions, bookkeeping, or the management of company accounts.”

Five, network with as many industry management professionals. Networking is key. It is one single approach to make your life easy. If you’re personally known to people and their organization, it would be easy for you to know many important information that could not be put down in writing. A simple phone call would solve the problem and you may not even need a written employee consent to do all of this.

There’s one caveat though. You must earn the trust of these people and should be able to reciprocate as by giving the same information, even exceed their expectations when they ask for your help in the future. At times, your network could help open doors for a lucrative job opportunity that you don’t know about. Indeed, the more industry professionals you know, the better for your job and personal career.

Last, give substantive and procedural due process to employees who mislead you. Dismissal from employment is not automatic. Be sure to follow your company’s disciplinary policy in terms of giving the concerned employees the right to explain themselves. To avoid a protracted labor case, it is imperative that you follow the law on due process.

Once a management decision is reached to fire someone, it should be done promptly and without fanfare. Whatever happens, give the employee the chance to resign voluntarily if it’s allowed by your top management. Firing someone is not an easy thing to do. You may need to do it if only to protect the company’s interests.

ELBONOMICS: Stand up for truth even if it means hurting and firing someone.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

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Philippine events canceled or postponed due to COVID-19 fears (as of 03/12/20)