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Most companies shelve expansion plans — survey

MOST companies have put expansion and investment plans on hold due to the coronavirus disease 2019 (COVID-19) pandemic, according to a survey released by the Employers Confederation of the Philippines (ECoP).

Results of the ECoP’s COVID-19 impact assessment survey showed 67% or 212 of the 347 respondents said their company postponed expansion or investment decisions.

“In a survey conducted by the ECOP from 27 March 2020 to 15 April 2020, a total of 347 enterprises responded regarding the impact brought about by the COVID-19 pandemic on business operations, work arrangements, and workforce planning,” the business group said, adding the respondents included 148 large companies and 115 micro enterprises.

A fourth or 26% of the respondents said their business had to shut down due to the enhanced community quarantine (ECQ) in Luzon that started in mid-March, while 24% said they slowed down operations or had a skeletal work force. Only four respondents said they are observing normal operations while 20% are on work-from-home setup.

For a fifth or 21.8% of the respondents, the main impact of the Luzon-wide lockdown was a decrease in demand for products and services, while 19% said it was the change in work arrangements and 10.3% said they had difficulties paying salaries.

While 38% of respondents said they expect operations to go “back to normal” a month after the lockdown is lifted, 37% said they expect normalcy to return within two to three months. Another 14% said it would take them six months to go back to normal.

More than 42.7% said they are well prepared to manage the current impact of COVID-19, but only two respondents said they are “very well prepared.” Meanwhile, 34.2% consider their companies poorly prepared.

More large enterprises consider themselves well-prepared, with 52.8% agreeing to the statement compared to 50.9% of medium-sized enterprises, 43.4% of small enterprises, and 31.3% of micro enterprises.

Up to 28% of respondents said they do not have a written business continuity plan but are now developing one, while another 28% said they do not have such a plan.

FREEZE HIRING
Asked how the pandemic influenced workforce planning, 64% or 213 of the companies surveyed have stopped hiring, while 9% or 31 firms said they laid off workers.

“For those enterprises which were forced to lay off employees, the number of laid-off workers ranged from 25-50% of their employees, while some had to lay-off more than 100 employees,” ECoP said in the survey report.

Some respondents said they kept the same number of employees but if the ECQ or pandemic continues in the next six months, they expect to implement job cuts.

Majority or 71% of companies have implemented flexible work arrangements.

Almost 30% allowed employees to use remaining leave credits during the lockdown, while 24.7% did not provide additional leave credits.

Most employers, or 56%, did not release 13th month pay in advance. Among those who have, 58% disbursed pro-rated pay.

Asked what kind of support they would need from the government, ECoP noted a majority of the large companies are interested in tax relief, while a majority of the MSMEs (micro, small, and medium enterprises) are interested in financial support for affected workers.”

The respondents also called for “relaxation of compliance and reporting burden during the transition period,” a moratorium on loan amortization, and unimpeded supply of food and raw materials.

Some respondents also asked the government to provide subsidies and create a rehabilitation fund for MSMEs. — J.P.Ibañez

Gov’t plans to import 300,000 MT of rice

By Revin Mikhael D. Ochave

THE PHILIPPINE government is seeking to import 300,000 metric tons (MT) of rice to boost stocks ahead of the lean harvest season in the third quarter.

Agriculture Secretary William D. Dar said on Monday the Department of Industry (DTI), through its Philippine International Trading Corp. (PITC), has already started the government-to-government (G2G) rice importation process.

In a statement, Mr. Dar said the PITC has communicated with Myanmar, Vietnam, Thailand, India, and Cambodia regarding rice imports.

The G2G importation is an emergency measure permitted under Republic Act 11203 or the Rice Tariffication Law (RTL) to ensure adequate supply for the country during a national emergency, in this case the current coronavirus disease 2019 (COVID-19) pandemic.

“The IATF approved the 300,000 MT as a contingency during the lean months, as the bulk of rice supply will come from the forthcoming harvest in the 4th quarter yet, and continued imports,” DA Spokesperson Noel O. Reyes said in a statement.

Rolando T. Dy, executive director of Center for Food and Agri-Business of University of Asia and the Pacific (UA&P), said that rice supply is usually short during the third quarter.

“(The importation) is necessary. The months of July to September are low-harvest season or lean months,” Mr. Dy said in a mobile phone message.

Roehlano M. Briones, senior research fellow at the Philippine Institute for Development Studies (PIDS) said that the 300,000 MT of rice stocks will not affect local rice prices as it will only serve as buffer stocks.

“The private sector imports (are) still much bigger because of (RTL),” Mr. Briones said in a mobile phone message.

Under the RTL, restrictions on rice imports have been removed, permitting the private sector to purchase unlimited volumes.

However, Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, Inc., expects rice prices to be definitely affected by G2G importation.

“These are unprecedented times and unprecedented measures are likely needed. If this is not done right, this can be highly inflationary,” Mr. Asuncion said in an e-mail interview.

Magsasaka Party-List Rep. Argel Joseph T. Cabatbat said that instead of importing rice from other countries, the government should focus on supporting 200,000 farmers that were affected by the implementation of the RTL.

“Because of the RTL, 4,000 rice mills were forced to close and millions of farmers suffered after the entry of imported rice in the country,” Mr. Cabatbat said in a statement.

Data from the statistics office showed paddy rice harvest contracted by 3.6% in the first quarter of 2020.

VIETNAM RESUMES EXPORTS
Meanwhile, Vietnam said it will resume rice exports to the Philippines and other countries, after Association of Southeast Asian Nation (ASEAN) members agreed to keep their markets open amid the coronavirus pandemic.

“On 18 April 2020, after considering thoroughly the assessment findings on domestic rice supply and recommendations by the Ministry of Industry and Trade of Viet Nam, H.E. Prime Minister Nguyen Xuan Phuc decided to fully resume rice export from 1 May 2020,” Vietnamese Industry and Trade Minister Tran Tuan Anh was quoted as saying by the Finance department in a statement.

Vietnam, the world’s third-largest rice exporter, banned rice exports last March and curbed exports for April as it sought to ensure food supply for the country amid the pandemic.

The Philippines has contracted 666,480 MT of rice from Vietnam, but only 218,300 MT has been delivered as of May 1.

“This means that Vietnamese rice importers will commence fulfillment of their contracts with Philippine importers and consider future supply deals under an existing bilateral trade agreement,” Mr. Dar said. — with B.M. Laforga

Business group seeks longer loan extension

THE Philippine Chamber of Commerce and Industry (PCCI) is asking banks and other financial institutions to extend the loan maturities for at least a year, as businesses struggle to survive amid lockdown measures to contain the coronavirus pandemic.

The country’s largest business organization in a statement on Monday said loan maturities due between March 16 to Dec. 31, 2020 should be extended for at least one year.

PCCI President Benedicto V. Yujuico said the group’s members are concerned about “deteriorating cash positions and diminishing ability to avoid massive lay-offs,” adding that businesses of various sizes are straining to retain liquidity and cover basic operating expenses.

Companies in Luzon were forced to suspend operations after the enhanced community quarantine (ECQ) was implemented in Luzon in mid-March.

“The ECQ has brought substantially all businesses to a sudden and unexpected stop. Many are now facing economic distress, forcing them to resort to drastic cost-cutting, lay-offs and pay cuts. Even as the government slowly relaxes the quarantine measures, we expect that the effects of this crisis will continue to be felt and that businesses will continue to struggle through the end of 2020,” he said.

Mr. Yujuico said that creditors’ willingness to restructure loans maturing in 2020 will help preserve employment and avoid permanent close of businesses, adding that many are long-term clients of banks.

“Without the support of Philippine banks and other NBFIs (nonbank financial institutions), many businesses will likely be forced to shut down,” he said.

PCCI identified industries that are “greatly at risk,” such as transportation and logistics; wholesale and retail trade; arts and entertainment; hotels; and financial and insurance.

“Sales would likely be subdued as consumers will prioritize essential items and many restrictions might be imposed by the government post-lockdown. Many consumers are likely to choose to continue to quarantine themselves. Retail petroleum will also be at high risk due to the collapse in oil prices and lower demand,” PCCI said.

Manufacturing of non-essential items will also be affected, including textile, refined petroleum, and motor vehicles.

“Construction business, for most, have stopped during the ECQ. After the lockdown, there will be winners and losers as the government may shift the priorities for its infrastructure program. Many real estate companies have scaled down project launches this year,” PCCI added.

Other at-risk industries include real estate activities targeting low-income segments; mining and quarrying affected by a collapse in oil prices and lower demand; professional activities like architecture, engineering, advertising and market research; administrative and support services including travel agencies, and other community activities.

“PCCI expressed hope that its proposal will be considered to mitigate the potentially fatal effects that COVID-19 is having on many business enterprises,” it added. — Jenina P. Ibañez

National Government Fiscal Performance

THE government’s budget deficit inched up in March as expenditures outpaced revenues, but the first-quarter gap narrowed due to slower spending due to the coronavirus disease 2019 (COVID-19) pandemic, the Bureau of the Treasury (BTr) reported on Monday. Read the full story.

National Government Fiscal Performance

SMC drops $2-billion Holcim acquisition

By Denise A. Valdez
Reporter

SAN MIGUEL Corp. (SMC) is terminating its $2.15-billion acquisition of Holcim Philippines, Inc. after failing to obtain clearance from the Philippine Competition Commission (PCC).

In a statement on Monday, the diversified conglomerate said it would “no longer proceed” in buying 85.73% shares in Holcim after its agreement lapsed on May 10 without getting the required approval of the PCC.

With the discontinuation of the proposed acquisition, SMC said the supposed tender offer of Holcim shares held by minority shareholders is likewise withdrawn.

SMC, through First Stronghold Cement Industries, Inc. (FSCII) — a unit of SMC subsidiary San Miguel Equity Investments, Inc. — was buying 5.53 billion common shares in Holcim, the local arm of Switzerland-based LafargeHolcim Ltd.

The deal was made on May 10, 2019 with the purpose of expanding SMC’s foothold in the country’s cement industry.

As part of the transaction, FSCII was supposed to do a tender offer of shares in Holcim held by minority investors equivalent to 14.27% of its total issued and outstanding capital stock.

While the Department of Trade and Industry earlier said the buyout might result in lower prices of locally produced cement, the PCC said it might substantially lessen competition in the grey cement market in Luzon.

It flagged that FSCII is under SMC, and SMC is under Top Frontier Investment Holdings, Inc., which has two cement plants set to open in the next two years: Northern Cement Corp. and Oro Cemento Industries Corp.

The PCC likewise noted that SMC President and Chief Operating Officer Ramon S. Ang is the majority owner and chairman of Eagle Cement Corp.

“Sellers, distributors, and hardware owners in the relevant markets viewed Eagle Cement and Northern Cement as ‘sister companies’ and part of the Top Frontier group,” the competition watchdog said in January.

Shares in SMC at the stock exchange gained 50 centavos or 0.52% to P97 each on Monday, while shares in Holcim lost P2.55 or 22.57% to P8.75 each.

Ayala Land earnings fall 41% after Taal eruption, quarantine

PROFITS of Ayala Land, Inc. (ALI) dropped 41% to P4.3 billion in the first quarter, pulled by a slowdown in bookings and completions due to the Taal eruption in January and the enhanced community quarantine (ECQ) in March.

The listed property developer reported consolidated revenues of P28.4 billion in the January-to-March period, down 28% from a year ago. It was traced to lower revenues from both its property development and commercial leasing businesses, which fell 38% to P17.2 billion and 5% to P8.7 billion, respectively.

Property development sales declined due to lower project bookings and a drop in sales for projects in Southern Luzon after the Taal Volcano eruption. Residential revenues fell 39% to P13.8 billion while office sale revenues slumped 68% to P962 million. These outran the 8% increase in commercial and industrial lot sales to P2.5 billion.

Total sales reservations during the period dropped 27% to P24.6 billion. Four new projects worth P5 billion were launched, while the rest of the pipeline for the year are suspended to preserve cash.

ALI’s commercial leasing segment likewise slid due to the closure of malls and resorts in March in compliance with the ECQ to contain the coronavirus. Shopping center revenues decreased 9% to P4.6 billion and hotels and resorts revenues tumbled 17% to P1.6 billion, failing to offset the 15% increase in office leasing revenues to P2.5 billion.

Waived rent in malls stood at P2.6 billion as ALI’s 32-mall network has been closed since mid-March. Leasing revenues now mostly rely on offices, which are sustained by business process outsourcing tenants and headquarter buildings.

“The severe impact of the ECQ resulting from the COVID-19 crisis and the Taal eruption caused a major decline in our net income. Our development business was particularly hit hard during the quarter as we saw buyers opting to defer purchases during this period,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a statement.

The pandemic pushed the company to cut its capital expenditures for the year by about 37% to P69.8 billion. Of this, P21.6 billion have been spent in the first quarter.

“Given the continuing market uncertainty, we quickly made adjustments in our plans to ensure the long-term sustainability of the business,” Mr. Dy said. He noted ALI expects the buildup of the local economy to take some time.

“We are confident, however, that once the business environment normalizes, our products and services will continue to be well positioned to benefit from the renewed growth of the Philippine Economy,” he said.

ALI has an application to conduct a real estate investment trust offering this year which would raise about P15 billion in net proceeds. It said this plan is still being pursued but the timing of the offering will depend on market conditions.

Shares in ALI at the stock exchange gained 65 centavos or 1.99% to P33.3 each on Monday. — Denise A. Valdez

ABS-CBN not for sale; Dennis Uy not buying

By Arjay L. Balinbin and Vann Marlo M. Villegas
Reporters

ABS-CBN Corp. is not for sale, it reiterated on Monday, after Dennis A. Uy denied talk that he was looking to buy the franchise-less media company which is unable to broadcast since a government agency ordered its closure.

“Let me be clear once and for all and say that we, in Udenna Corporation, have no intention to acquire ABS-CBN,” said Mr. Uy, the holding firm’s chairman and chief executive officer, in a statement late Sunday.

The Davao City businessman issued the denial after rumors resurfaced on social media about the possibility of him acquiring the embattled broadcasting network. The franchise of publicly listed ABS-CBN expired on May 4.

President Rodrigo R. Duterte himself, who has repeatedly threatened to block the renewal of the ABS-CBN legislative franchise after a dispute during the 2016 campaign over the airing of his political ads, said in December that it would be better for the Lopezes to sell the media company as he was unsure if the network’s franchise would be renewed.

ISM Communications Corp., in the same month, gained approval from its board of directors to buy 100% of Udenna Communications Media and Entertainment Holdings Corp., which it would use as the parent firm for Mr. Uy’s telecommunications, media, and entertainment businesses.

ISM gained approval in March from the Securities and Exchange Commission to change its corporate name to DITO CME Holdings Corp.

Mr. Uy, a known campaign donor of Mr. Duterte, said: “Being in the business of broadcasting is not part of our corporate direction.”

ABS-CBN Head of Corporate Communications Kane Errol C. Choa said in a phone message on Monday when asked to comment on Mr. Uy’s statement: “ABS-CBN is not for sale.”

Mr. Uy said further that he has “high respect” for what ABS-CBN has achieved.

Atin pong lubos na kinikilala kung ano ang kanilang sinasagisag para sa mga kapwa nating Pilipino (We fully recognize what they symbolize for our fellow Filipinos),” he added.

ABS-CBN halted its broadcast operations on Tuesday last week when the National Telecommunications Commission’s (NTC) issued a cease-and-desist order.

The network said it was losing P30-P35 million every day it was off air. It has since asked the Supreme Court to stop the implementation of the NTC order.

The order is contrary to the guidance provided by the Department of Justice that the Congress may authorize the commission to grant ABS-CBN a provisional authority to continue its broadcast operations while it awaits approval of its franchise renewal application.

Also on Monday, ABS-CBN issued a statement clarifying a newspaper report, which questioned the citizenship of the network’s chairman, Eugenio “Gabby” L. Lopez III.

“Mr. Gabby Lopez is a Filipino citizen. He was born to Filipino parents — under the 1935 Constitution that was in effect when he was born — which automatically makes him a Filipino citizen. He did not need to acquire Filipino citizenship because he never lost it nor renounced it. He was born in the US and under the US Constitution, he is also a US citizen,” ABS-CBN said.

“The Department of Justice and the Bureau of Immigration have both recognized the Philippine citizenship from birth of Mr. Lopez as contained in Identification Certificate No. 0069 dated 1 Oct 2002,” the network added.

ABS-CBN’S TRO PETITION RAFFLED
On Monday, the Supreme Court spokesman said the petition for temporary restraining order (TRO) of ABS-CBN against the NTC order had been assigned to a justice.

“I just want to confirm that the new Petition filed by ABS CBN against NTC has been raffled already to a member-in-charge,” spokesman Brian Keith F. Hosaka told reporters in a mobile-phone message.

“The results of the raffle is confidential pursuant to the internal rules of the Supreme Court,” he added.

ABS-CBN on May 7 filed a petition for TRO and/or preliminary injunction to stop the NTC’s order which directed the station to go off air on radio and television on May 5 after its franchise expired on May 4.

The company also filed an urgent motion for the raffling of the petition, citing its operations is “a matter of public interest and transcendental importance.”

Aside from the foregone advertising revenues, ABS-CBN said the shutdown would result in the loss of jobs for its more than 11,000 employees.

The network also argued that the NTC committed grave abuse of discretion in issuing the order, noting that it should have deferred to the Congress, which is mandated to approve franchise renewals. It claimed that its right to equal protection by deviating from the practice of allowing networks to continue operation pending the renewal or extension of the franchise.

There are 11 bills filed at the House of Representatives and two bills at the Senate for the renewal of ABS-CBN’s franchise. The NTC previously said that it would issue a provisional authority to ABS-CBN once it franchise expired.

House to NTC: Explain ABS-CBN closure order

THE House legislative franchises committee ordered the National Telecommunications Commission (NTC) to explain why it should not be held in contempt for issuing a cease-and-desist order against ABS-CBN Corp.

“You are ordered to explain within seventy-two (72) hours from receipt of this Order why you should not be cited in contempt or preceded against for issuing an Order to ABS-CBN Corporation to immediately cease and desist from operating its radio and television stations,” said Palawan Rep. and House legislative franchises committee chair Franz E. Alvarez in his letter.

Mr. Alvarez said that the NTC did not uphold its assurance to the House of Representatives that it would let ABS-CBN continue its operations “until such time that Congress has made a decision on its application.”

“The act of NTC constitutes undue interference on and disobedience to the exercise of power of the House of Representatives, and therefore, an affront to its dignity and an inexcusable disrespect of its authority,” it said.

While the letter is dated May 5, 2020, the Office of House Speaker Alan Peter S. Cayetano told reporters via Viber that the letter was e-mailed to the NTC on Monday afternoon. The NTC acknowledged the receipt of the letter on the same day.

Specifically, the NTC officials included in the said show-cause order are Commissioner Gamaliel A. Cordoba, Deputy Commissioner Edgardo V. Cabarios, Deputy Commissioner Delilah F. Deles and Head of NTC Legal Branch Ella Blanca B. Lopez.

“Your failure to comply with this Order within the period prescribed will result in a finding against you for contempt of the House of Representatives and subject you to other actions that are within the powers of the House of Representatives to enforce,” the order said.

ABS-CBN went off air on May 5 after receiving a cease-and-desist order from the NTC on the same day.

Cagayan de Oro Rep. Rufus B. Rodriguez filed a House Joint Resolution 30 that seeks to grant a provisional franchise to ABS-CBN to be able to operate until June 30, 2022.

Since ABS-CBN’s previous franchise expired on May 4, Mr. Rodriguez also filed House Bill No. 6694 to grant the media giant a new franchise for 25 years.

Meanwhile, House of Representatives Minority Leader Bienvenido M. Abante, Jr. filed House Bill 6701 seeking the abolition of the National Telecommunications Commission (NTC) for its alleged “defiance” to Congress over the franchise of ABS-CBN.

There are 11 pending House bills on ABS-CBN’s franchise renewal, but none have hurdled the committee level.

SENATE ASKS NTC TO RECONSIDER
Also on Monday, the Senate on adopted the resolution asking the NTC to reconsider the cease-and-desist order issued against ABS-CBN.

With 12 affirmative votes, zero negative and nine abstention, the chamber adopted Senate Resolution No. 395, in line with its position that a provisional authority may be granted to the media network.

Among those who abstained were Senators Vicente C. Sotto III, Cynthia A. Villar, Imee R. Marcos, Ronald M. dela Rosa, Christopher Lawrence T. Go, Panfilo M. Lacson, Ramon B. Revilla, Jr., Francis N. Tolentino, and Pia S. Cayetano, who also withdrew from being one of the authors.

“If we are discussing the franchise of ABS-CBN, I will vote in favor of the franchise but we are tackling a resolution that is countering the prerogative of the Executive Department that they’ve already made, and I am inclined to abstain from the vote,” Mr. Sotto said ahead of the voting, Monday.

Meanwhile, 13 Senators on Monday filed Senate Bill No. 1521, granting the network a provisional authority to continue operations while its franchise awaits Congress approval.

The bill extending the franchise of ABS-CBN and unit ABS-CBN Convergence, Inc. for another 25 years is pending at the committee level.

“The non-renewal of ABS-CBN franchise will result in the loss of thousands of jobs as the network has over 11017 employees, including its artists, independent contractors, suppliers, and content creators who are spread out in ABS-CBN’s information and entertainment group of companies,” the Senators said in the explanatory note.

They also cited the network as among the country’s largest taxpayers, contributing P70.5 billion between 2003 and 2020.

Moreover, the Senators cited the need for a reliable source of information as the country deals with the crisis brought by the coronavirus disease. — Genshen L. Espedido and Charmaine A. Tadalan

The return of the cubicle? Firms rethink office life post lockdown

MILAN/LONDON — Can creative sparks fly through plexiglass? Is the water cooler chat a thing of the past?

Company bosses preparing to reopen offices shuttered due to the coronavirus pandemic are contemplating radical changes to the workplace to keep staff safe.

Hand sanitizers and thermal scanners are just the start. Some firms are considering remodelling their offices to minimize the risk of a second wave of infections. Long rows of desks may be out, work stations sheathed with glass sneeze guards may be in.

As he prepares to return thousands of staff to offices across Italy, Davide Sala, Pirelli’s HR boss, is applying practices already adopted in the tire company’s operations in China.

The changes included temperature tests, face masks, and more space between desks that allowed the group to resume at least some office work.

“We’re going to use the China model elsewhere,” Mr. Sala said. “There will be more space for staff, fewer people in rooms, and the layout of the offices will have to change.”

Mr. Sala is looking at whether to designate staircases for entry and exit, limit elevator use to one person per ride, introduce a shift system for lunch, stagger work times while also having people still work from home and re-imagining desk layouts.

“The real break with the past will be in redesigning the offices,” he said.

China is ahead of most of the world in lifting restrictions put in place to slow the spread of the virus and Pirelli is one of many multinational companies to have tested post-lockdown measures there.

How radical and permanent those changes are is not yet known, as scientists struggle to fully understand the virus and drug companies strive to find a vaccine that protects people.

But strategies deployed by companies including WPP, Rentokil Initial, and PageGroup show how a typical 9 a.m. to 5 p.m. day at a hot desk in a packed building will not be resumed when governments globally give the green light for offices to reopen.

PACKED LUNCHES
For the world’s biggest advertising company WPP, staff will return gradually and on a voluntary basis, Chief Executive Mark Read told Reuters.

“What we can say with confidence is that more people will be working from home in the future, and I think we can say we’ll still have offices,” he said.

Almost all WPP’s 107,000 staff have been working from home since mid-March. In China, it has slowly introduced its 7,000 staff back to its 50 offices over the past two months after a four-week shutdown.

WPP has also adopted flexible working hours, limited the number of people in elevators, and, with the canteen buffet off the menu, staff are bringing in their own food.

PageGroup, the UK-listed recruitment company, has set aside one entrance at offices in China where staff line up each day for a temperature check and to collect a mask, Rupert Forster, managing director of the China business, said.

It’s also encouraging people to bring in their own lunch to avoid busy communal areas and is minimizing large group meetings.

Those measures will form the blueprint for the management team overseeing the return of some 7,500 staff to other offices, Mr. Forster said.

It’s a similar story elsewhere.

Since reopening its seven main branches in China last month, Rentokil’s 600 staff stay in the office for about four to five hours a day, a spokesperson said. It has also rejigged seating plans, making sure there’s an empty seat between each desk.

SANITIZING OFFICE LIFE
International real estate company Cushman & Wakefield, which has overseen the return of almost a million people to offices in China, has come up with a visible workplace design to help clients prepare their employees for the “six feet rule” of social distancing.

“It comes down to some basic concepts, things like colored carpet or, in a less sophisticated or expensive application, taping off what six feet workstations look like. So it’s very visual,” said Bill Knightly, who works on the company’s COVID-19 taskforce.

In some cases, they’re proposing installing plexiglass or some other form of sneeze or cough guards to give additional insurance — a pandemic twist on the old cubicle model.

For workers used to interacting on open plan floors, sanitizing office life and boosting remote working could limit their opportunity to swap ideas and weaken company culture. It also makes integrating new staff more difficult.

“What we have to watch out for is the unintentional creativity and watercooler discussions. You lose that,” said Hauke Engel, partner at McKinsey’s sustainability practice.

Some companies are seeking short-term fixes to get through the next few months.

“Companies are hesitant to invest at scale in what may be a transient situation,” said Mr. Enkel. He declined to give a figure for the size of investment that may be needed.

But others are preparing for a more radical makeover of building design to ensure workplaces can still thrive alongside this virus and any future health threat.

That may mean more flexible layouts with breakout areas, more personal space and ventilation systems that clean the air and kill pathogens, according to Darren Comber, chief executive of British architect firm Scott Brownrigg.

Buildings may have bigger elevators, make staircases more pleasant to promote their use, and use paint, films and materials that kill viruses.

“If you need a mask, then you haven’t dealt with the problem,” said Mr. Comber.

At Pirelli, Mr. Sala is bracing for those kinds of radical structural changes.

He estimates a staggered restart at the company’s offices will take four months. Then the second phase will start with architects and consultants advising on how to remodel offices.

He thinks retooling factories was easier.

“Redesigning the offices is the real challenge.” — Reuters

Airlines seek nearly P9-B monthly aid

By Charmaine A. Tadalan
Reporter

AIRLINES in the Philippines are asking the Congress for P8.6 billion in monthly assistance to sustain operations while strict travel restrictions are in place due to the coronavirus disease 2019 (COVID-19) outbreak.

The Air Carriers Association of the Philippines (ACAP) on Monday said the needed funds would cover P1.3 billion for wage subsidy, P500 million for payment of fees, and P6.8 billion for working capital.

“Our estimate that we have also submitted to Congress is a wage subsidy of P1.3 billion per month…, submitted and consolidated coming from the carriers; in terms of other support, we pay about P500 million to the aviation authorities monthly,” ACAP Executive Director and Vice-Chairman Robreto Lim told the Senate Committee on Public Services.

“We have requested also a working capital of P6.8 billion for the carriers. The total of that is P8.6 billion,” he added.

He noted the P500 million monthly payment to aviation authorities goes to the Manila International Airport Authority, Civil Aviation Authority of the Philippines (CAAP), Mactan-Cebu International Airport Authority and the Clark International Airport Corp., among other provincial airports.

ACAP is composed of Philippine Airlines, Inc. (PAL), Cebu Air, Inc. (Cebu Pacific), Philippines AirAsia, Inc., Air Philippines Corp. (PAL Express), and Cebgo, Inc.

The committee, led by Senator Grace S. Poe-Llamanzares, was conducting an inquiry on the resumption of public transportation, which was suspended due to the implementation of the enhanced community quarantine (ECQ).

President Rodrigo R. Duterte placed in mid-March the entire Luzon island on a lockdown, which suspended classes, work and public transportation. This was later extended by two weeks until April 30 and again until May 15.

The government also imposed a one-week suspension on inbound international flights starting May 3. CAAP later said it would relax restrictions by allowing inbound flights but with a cap of 400 passengers per day, starting May 11 to June 10.

“There’s absolutely no revenue generated by the local carriers. Any extension of the ECQ, of course, will further increase the losses,” he said.

Mr. Lim said the International Air Transport Association (IATA) estimated the industry would incur losses of $4.9 billion until the end of the year.

He added ACAP projected that the airlines would be able to resume only 20-30% of their network due to lack of consumer confidence and other issues relating to the risk assessment of local government units.

According to IATA, about 500,000 workers are at risk of displacement. This covers some 25,000 regular employees and those working for associated airline entities, including those engaged in travel and tourism, and the hospitality sector.

“Right now, there’s no large-scale lay off of employees in the aviation industries. The ACAP carriers have continued to maintain the workforce, and wage subsidy from Congress would help the airline industries to sustain it,” he said.

Senators Risa N. Hontiveros-Baraquel said she is open to the proposal considering it guarantees job security of the 500,000 employees.

“Since the labor cost is a significant part of that then I suppose the other side of it is some assurance of security of tenure for the existing employees,” Ms. Baraquel said.

Senator Ralph G. Recto asked ACAP to submit the proposal for the Senate’s consideration when it takes up the stimulus package proposal.

WFH during the ECQ: Timson’s Darren Pangan

AS the Philippine workforce has shifted into a work-from-home (WFH) dynamic to prevent the spread of the coronavirus disease 2019 (COVID-19) in the country, Darren Blaine T. Pangan, Head of Online Trading and Trader at Timson Securities, Inc., has been monitoring the local stock market and performing his day to day office duties from the safety of his home.

In this e-mail interview done on May 6, Mr. Pangan said that the work-from-home situation just showed how creative and adaptive Filipinos can be despite a health crisis such as COVID-19 and movement restrictions implemented due to the lockdown.

The interview was lightly edited for clarity.

WHAT IS YOUR PREFERRED MEETING METHOD AND WHY?

Since my type of work doesn’t require a lot of video conferences, I would usually talk to clients and workmates via Viber and Facebook messenger. Viber calls seem more than enough for quick calls, while Facebook Messenger comes in handy since we’re all used to the app already.

CAN YOU DESCRIBE YOUR HOME OFFICE?

My home office consists of a simple study table and a comfy office chair, both of which have been in my room since my university days. Given that my study-room-turned-office-area is situated at the second level of our two-storey house, I always bring a jug with me to keep myself hydrated. [As the] humidity level seems to be increasing over the past few days, to not experience this not-so-friendly weather, I usually stay downstairs at our dining area. As long as I have my laptop, charger, and strong internet access, I’ll be able to monitor and execute trades in the local stock market.

WHAT TIME DO YOU START YOUR WORKDAY NOW COMPARED TO BACK WHEN YOU ACTUALLY WENT TO THE OFFICE?

There isn’t really much of a difference, since I usually arrive at the office around 7 a.m. despite the call time being 8:30 a.m. Now that I don’t have to commute going to Ortigas, I spend the extra time eating a heavier breakfast as I read up on what transpired through the night on US and European equity markets. After cleaning myself up, I then prepare for the day’s tasks by making a list of things to do. I realized that my productivity rose the moment I utilized to-do lists.

DOES WORKING FROM HOME MAKE YOUR WORK HOURS MORE FLUID?

Working from home has allowed me to focus on my tasks more efficiently, taking away the thought of going through the heavy traffic at EDSA for one to two hours just to get home.

That one to two hours of extra time has allowed me to definitely spend more time monitoring the financial markets as well as become much more responsive to client inquiries and concerns.

DO YOU TAKE BREAKS AT HOME?

It’s just the usual lunch and merienda meals. I don’t take a lot of breaks and time seems to fly really fast.

DO YOU STILL DRESS UP FOR WORK?

Since we don’t really do a lot of video calls, I just wear my usual home clothes. I do take a bath before and after working, though. I think hygiene has to be taken seriously as we go through this pandemic.

ANY INTERESTING STORIES FROM YOUR WORK FROM HOME EXPERIENCE?

Given that I sometimes work at the dining area to escape the hot weather upstairs, my family suddenly gained access to my reactions as I watched the local market fluctuate. There was one time that the local market was dropping big time, and I couldn’t help but express my surprise for the market’s movement during that day. I guess I was overly expressive that day than I usually am, but it was just because it wasn’t a normal day in the market. I saw blue chip stocks fall tremendously. I may have been too surprised that my family asked what was happening.

I guess working from home gives your loved ones the chance to witness your work routine, habits, and mannerisms.

WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING FROM HOME? HOW WILL THE “NEW NORMAL” AFTER THE QUARANTINE ENDS AFFECT THE WORLD OF WORK?

There was quite a lot which I learned for the past few weeks I have been working from home, but I think being able to witness how teams recoup and organize themselves to become as efficient as being in the office is so fascinating to watch. It goes to show how adaptable humans are in times of need.

IS THERE ANYTHING YOU WILL CONTINUE DOING EVEN AFTER ECQ?

I would now give higher value on the people, places, and things around me that seem to have been neglected all along. The little things. It’s different for every person I guess, depending on their values and way of life. I’m sure, though, that personal hygiene is something that we can all agree on giving more attention to after ECQ (enhanced community quarantine).

DID YOU HAVE ANY SLIP-UPS DURING OFFICIAL WORK STUFF?

There are times when I’ve had too much coffee to drink, and somewhere during the hours when the stock market is open, I’ll have to go to the comfort room. Unfortunately, some clients call at that precise moment while I’m in the toilet. Sometimes, I do take calls in the toilet, but more often than not, I answer my phone after cleaning up. I do not have to worry, anyway, because our toilet has a lot of carpets to keep the echo at a minimal level. — Revin Mikhael D. Ochave

BusinessWorld Insights to focus on COVID-19, stock market

WHILE the coronavirus disease 2019 (COVID-19) continues to make a negative impact on the Philippine economy, it has also severely affected investor confidence and the stock market. Still, experts believe that there is a silver lining in this volatile situation.

On May 13 at 11 a.m., BusinessWorld Insights: “COVID-19 and The Philippine Stock Market: Uncertainties and Opportunities,” will help the audience understand better the current stock market situation that will guide them on their next investment journey.

This is the third and last leg of BusinessWorld Insights under the first phase of the online forum series with the theme “Laying Out the Macro Scenario for Businesses Amid COVID-19.”

Confirmed speakers are Ramon S. Monzon, Philippine Stock Exchange, Inc. president and chief executive officer; April Lynn Tan, vice-president and head of research, COL Financial; and Justino B. Calaycay, Jr., VP-head of research and traditional sales, Philstocks Financial, Inc.

The online forum series, scheduled every Wednesday, 11 a.m., will be shown live in BusinessWorld’s (facebook.com/BusinessWorldOnline) and The Philippine STAR’s (facebook.com/PhilippineSTAR) Facebook pages and will be uploaded in BusinessWorld’s website (www.bworldonline.com).

BusinessWorld Insights, organized by premier business daily BusinessWorld, seeks to give the Philippine business community a better outlook on the impact of COVID-19 and help the country prepare for post-pandemic recovery by bringing in high-caliber speakers and experts to hold an intelligent online discussion, moderated by BusinessWorld editors.

The Phase 2 of BusinessWorld Insights will discuss “The Aftermath: Lessons from the COVID-19 Pandemic” and will start on May 27.

The forum is made possible by sponsors SM, Megaworld Corp., Globe Telecom, PayMaya, and National Home Mortgage and Finance Corp.; eLearning platform partner Olern; partner organizations Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Association of National Advertisers, and Bank Marketing Association of the Philippines; and media partner The Philippine STAR.

For more information, e-mail Shai Cordero at smcordero@bworldonline.com.