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Lining up for work

Thousands line up at the TNK (Trabaho, Negosyo, Kabuhayan) Job Fair and Business Opportunities at the Kingsborough International Convention Center in San Fernando, Pampanga on May 1, the observance of International Workers’ Day. The TNK fair, jointly organized by various government agencies, was also held in regions across the country.

Marawi weavers need more help to sustain livelihood

WEAVERS FROM Marawi City, which suffered devastation from the five-month armed clashes in 2017 arising from a siege by Islamic State-inspired local extremist groups, were among those who joined a forum in Iligan City last week intended to discuss the revival and sustaining affected businesses in the war-torn city. Five groups of weavers received swatchbooks as livelihood assistance. “The swatchbook contains relevant information such as design name, production capacity, standard width, and material mix,” according to a statement from the Strengthening Urban Resilience for growth with Equity (Surge), a project funded by the United States Agency for International Development (USAID). Rolando A. Torres, executive director of the Mindanao Business Council, which is also assisting the weavers, said the sector needs more interventions like capital funding. “We are looking at providing them more capability-building activities and some resources so that they can not only start but sustain their livelihood activities,” said Mr. Torres. In coordination with the Philippine Chamber of Commerce and Industry, Echosi Foundation and Philippine Disaster Resilience Foundation, Surge has been providing them trainings on productivity development, financial management, marketing, and distributing start-up materials like looms and threads. They are also getting marketing assistance through the inclusion of their products in fashion shows and selected Echostore shops in the country. The forum, organized by the Bangon Marawi Chamber of Commerce and Industry with support from USAID, was attended by about 500 displaced entrepreneurs and other representatives of key business organizations and government agencies. Discussions on new business opportunities were also held. — Carmelito Q. Francisco

Another 16 bricks of cocaine found along Surigao shoreline

ANOTHER 16 bricks of suspected cocaine were discovered along the shoreline of Surigao del Sur on Tuesday night, this time by a fisherman in Lingig town, the police reported. The 20 kilos of illegal substance, with an estimated value of P100 million based on the Dangerous Drugs Board’s valuation, were turned over to the municipal police station. This latest incident follows five other cases of blocks of cocaine found in waters off Caraga region since February. — Vince Angelo C. Ferreras

SC affirms conviction of 2011 Sultan Kudarat bomber

THE SUPREME Court (SC) has affirmed the Court of Appeals’ (CA) decision convicting the individual who was behind the 2011 car bombing in Sultan Kudarat that killed two. In a resolution dated March 6, the SC third division denied for lack of merit the appeal of Datu Karim Masdal over the CA 2017 decision affirming his 2015 conviction for double murder. Those who died in the bombing were Datu Russman Q. Sinsuat, Sr., a board member in the Autonomous Region in Muslim Mindanao, and Raffy L. Pareñas. Masdal is sentenced to reclusion perpetua or 20 to 40 years of imprisonment without parole. The high court also affirmed the P100,000 payment per victim as civil indemnity, exemplary, and moral damages, to the heirs of the casualties. In denying the appeal of Mr. Masdal, the SC said the prosecution established that Mr. Masdal is guilty beyond reasonable doubt. “These unbroken chain of events prove Masdal ‘s participation and responsibility in the murder of Parrefias and BM Sinsuat,” the high court ruled. — Vann Marlo M. Villegas

Palace says no need to show proof on names in ouster matrix

MALACAÑANG ON Wednesday said it is “totally unnecessary” to show proof on the alleged involvement of journalists, lawyers, and media groups named in the Duterte ouster matrix it previously released. “Those named in the matrix demand proof of their participation in the ouster plot. Such is totally unnecessary,” Presidential Spokesperson Salvador S. Panelo said in a statement. “The matrix shows that there is an ouster plot. It is just a plot, a plan, an idea. The same is not actionable in court it being just a conspiracy,” he added. Mr. Panelo cited Article 8 of the Revised Penal Code, which provides: “Conspiracy and proposal to commit felony are punishable only in the cases in which the law specially provides a penalty therefor.” He cited that punishable conspiracies are those relating to committing treason, rebellion, insurrection, coup d’etat and sedition. “Only when all the elements of any of these crimes have been committed will we file a case against the conspirators,” he explained. — Arjay L. Balinbin

MCWD says desalination plant, Mananga Dam to address Metro Cebu’s future water demand

A DESALINATION plant in Mactan and the development of the Mananga Dam as a water source will address the supply shortage in Metro Cebu, currently made worse by the prevailing dry spell, an official of the Metropolitan Cebu Water District (MCWD) told the Cebu City council. MCWD General Manager Jose Eugenio B. Singson, Jr. said they are putting up a desalination plant in Mactan, expected to be operational by 2022, that will cover the island’s demand. “We are expecting to award it within the year, the construction phase (up to) two to three years,” Mr. Singson said. Mactan currently has a total demand of 80,000 cubic meters (cu.m) per day but MCWD is only able to supply 30, 000 cu.m. sourced from Carmen. Once the desalination plant is up, the Carmen supply will be diverted to other parts of Metro Cebu. For the Manganga Dam, the MCWD official said they are bidding out the P6.5 billion project after the elections. It will be undertaken through public-private partnership. He added that three contractors have already expressed interest. MCWD serves the cities of Cebu, Mandaue, Lapu-Lapu, and Talisay, and the towns of Compostela, Liloan, Consolacion, and Cordova. — The Freeman

NTC-11 targets more than P100M revenue collection this year

THE National Telecommunications Commission-Davao Region (NTC-11) is eyeing to collect double of its P56 million income this year, Regional Director Nelson T. Cañete said. “This is because we have intensified the campaign against unlicensed operations of communications under the regional office,” he said in an interview. In 2018, NTC-11 collected P93 million, higher than the P53 million target. “NTC-11 is one of the top agencies in terms of revenue collection. In fact, our office’s Commission On Audit released an audit observation memorandum for the first time commending our office,” Mr. Cañete said. The NTC generates revenue from issuing permits to stores selling mobile phones and radio station equipment for radio frequency waves. He said the higher-than-target revenue comes from telecommunication stores in far-flung areas of the region. Mr. Cañete said they have also been stepping up the monitoring of 30 radio stations to ensure compliance to regulations and penalize violators. — Maya M. Padillo

Nation at a Glance — (05/02/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (05/02/19)

Millennials are here to stay — or so they hope we will

As Baby Boomers and Gen X-ers prepare to retire, companies worldwide have been gearing up to accommodate more millennials in the workplace. With three generations having different values and attitude towards work sharing one office, culture shock and clashes are bound to happen.

Millennials, a demographic term coined in 1987 by authors William Strauss and Neil Howe, are individuals born in the early 1980s until the mid-1990s into a wide usage of technology, information, and media. This 2019, millennials are the employees aged roughly 25 to 37 years old. They are not your fresh graduates, who belong to Generation Z. Rather, they are most likely today’s supervisors and managers.

The challenge is that this generation is marked by restlessness to move between companies at high speed. Deloitte’s 2016 Millennial Survey, which includes Filipino participants, showed that 6 out of 10 millennials foresee leaving their current jobs within four years. This, coupled with a global market for young professionals, makes them less tolerant when they are not motivated or fully-utilized at work.

So how do you attract, train, and retain such an elusive generation?

youth

As a millennial, I believe the answer lies in the fact that we simply grew up differently. Technology allowed us to play, communicate, socialize, and learn in new platforms as children. Information allowed us to gain diverse perspectives from authorities all over the world, more than from our parents and teachers. Multi-sectoral crises such as global terrorism, corporate scandals, government corruption, and environmental issues made us crave for greater participation and contribution. In short, we grew up wanting different outcomes from the work we do.

To encourage millennials like me to stay, companies must have the following characteristics/values:

Authenticity. At the rise of fake news and sensationalized media, millennials have grown to be both opinionated in and skeptical of media. With a click of a button, this tech-savvy generation can verify and fact-check the catchiest company claims and are even vigilant of how their companies will react on various political or industry issues. As such, to retain their millennial employees, companies should display authenticity by matching their internal practices with their external messaging. Millennials will eventually find out misleading information and may drive them to be Internet “whistleblowers” of poor company practices.

Visibility. With the desire for authenticity comes the desire for accessibility. If companies in the 21st century aim to hire more young professionals, it is a must to have an updated website and social media platforms that display not just company information but also company values. Because millennials tend to look for companies that align with their personal values, digital platforms can be used not just for recruitment but also for corporate branding. Companies should be more open to post about their employee engagement activities, corporate social responsibility (CSR) practices, training opportunities, and other perks if they wish to attract more millennials to apply.

Flexibility. Millennials are keen on finding solutions to get things done faster using less resources. With work-life integration as one of their main values, millennials measure their productivity based on outputs rather than the number of hours worked at the office (PwC, 2013). They most likely prefer working remotely using various software to substitute tedious tasks and ultimately accomplish more work, rather than commuting to go on hour-long meetings. Some of the flexibility options millennials seek are telecommuting, freelance work, and part-time, flexible, or alternative schedules (Forbes, 2017). Companies offering space and time flexibility are definitely more attractive than those only with traditional office-based, nine-hour shifts.

Inclusivity. While other generations achieve results by hitting measurable targets, millennial employees are found to achieve results via collaboration — by gaining more ideas, insights, and perspectives from others (Deloitte, 2016). There must be a perceived safety to be vulnerable around team members, such as when sharing opinions or admitting a mistake without retaliation or judgment. This is called psychological safety, and it is one of the primary elements to make more effective teams (Google Project Aristotle, 2012). Companies will do well to provide a safe environment to get frequent feedback via evaluation forms, forums, and one-on-one sessions to make employees feel heard and valued when the management makes decisions.

Social responsibility. Despite being called entitled and narcissistic, the 2015 Cone Communications Millennial CSR study showed that millennials are actually willing to take pay cuts to work for responsible companies. Millennials want their work to impact other teams and the entire organization (Google, 2012). The so-called “woke” generation also want their companies to work on larger societal problems. However, companies do not need to simply dump funds on non-profits or participate in one-time volunteerism events. Being socially responsible can take the form of improving internal policies, such as on minimum wages, contractualization, carbon footprint, workplace diversity, and more.

By 2020, at least half of the global workforce are seen to be composed of millennials (PwC, 2011). They are occupying more and more positions to make decisions on targets, budgets, resources, and overall company directions. If a company hopes to survive another generation, it is not only wise but also essential to understand millennial employees.

 

Samantha Isabel V. Coronado, a millennial, is a corporate social responsibility practitioner and an MBA student at the De La Salle University.

samantha_coronado@dlsu.edu.ph

Banks’ Brunei boycott deserves a small cheer

By Elisa Martinuzzi

JPMORGAN Chase & Co. is the latest global bank to take a stand against Brunei after the oil-rich sultanate introduced legislation that punishes gay sex with death by stoning. The idea that financial leaders will choose their business partners on the basis of ethical principles marks a notable shift. But praise for this push onto the moral high ground should be limited.

The financial crisis left lenders with tens of billions of dollars in fines for scandals ranging from rigging to mis-selling, and substantial reputational damage. The industry’s long haul to recover its position has, for the past decade, put it squarely on the receiving end of new rules and regulations, including a fresh push to abide by environmental, societal and governance standards. Concerns about the recent changes to Brunei’s penal code align with this — the laws have drawn condemnation from the United Nations, criticism from the United States and outrage from the entertainment world.

So it’s good to see that banks are doing their part by banning staff from staying at luxury hotels owned by Brunei’s sovereign wealth fund. JPMorgan has joined the boycott, the Financial Times reported this week. At least seven others including Deutsche Bank AG, have similar restrictions in place, according to Financial News.

That so many firms are on board with the restrictions is unprecedented, and demonstrates a renewed appetite within the industry to assert itself as an agenda-setter instead of merely a rule-taker. And even if driven by the demands of customers and millennial employees, the desire to make a stand in such fashion is welcome.

Yet the practical impact of this policy will be limited. The move may strain the finances of the hotel properties, which include the Dorchester in London and the Beverly Hills Hotel in California. But with oil back on a tear, Brunei’s fiscal position probably won’t change much. Nor does it appear that firms are giving up a pipeline of lucrative business. Brunei represents less than 0.03% of the global economy. It’s not exactly the IPO or bond issuance capital of the world.

At the moment, it doesn’t appear that the big lenders have the appetite to repeat this approach elsewhere.

The Cato Institute’s Human Freedom Index shows a number of other, larger countries score little better than Brunei on repression, if not worse. However, financiers appear to be perfectly willing to do business in some of these locations.

One example is Saudi Arabia. Ranked 155 out of 162 for personal freedom, just last week the kingdom drew the world’s top bankers and investors to a financial summit in Riyadh. In attendance were some of the very executives who had pulled out of a conference there in the autumn after the murder of US-based journalist and Saudi critic Jamal Khashoggi.

This year, conference participants expressed their excitement about the role they can play in an economy with a bright future, in the words of one finance chief.

One element of this is absolutely right: Saudi Arabia is enticing, financially. Amid a dearth of deals in Europe, Saudi Aramco’s $12 billion bond sale has been a bright spot in the capital markets this year and the kingdom’s economic transformation promises plenty more.

The reality is that pulling out of Saudi Arabia would be very expensive for global banks that have decades of shared business dealings, and hundreds of employees on the ground. It may not be possible for them to easily adopt the playbook of hedge fund Pharo Management, which decided in December to return about $300 million that it was managing for the kingdom’s central bank.

Big finance’s hard line against repressive regimes will be tested for consistency. The progress banks have made deserve praise — but lenders should recognize that standing firm on principles might be a little harder next time.

 

BLOOMBERG

Europe’s rebound shows Draghi got it right

By Ferdinando Giugliano

THE European Central Bank faced a torrid start to the year, as critics said it was not providing enough stimulus to a slowing euro-zone economy.

In retrospect policy makers may have got it just right. The economy in the currency union expanded by 0.4% in the first quarter, beating expectations. The growth rate may not be spectacular, but is higher than in the last three months of 2018, when it came at 0.2%. The euro zone is not out of the woods yet, but the ECB’s wait-and-see approach may have been vindicated.

For much of the first quarter, the central bank could not really make up its mind about the extent of the region’s slowdown. President Mario Draghi noted how the industrial sector was clearly going through a rough patch courtesy of a range of one-off factors (including disruptions in Germany’s automotive sector) and global trade tensions. The question was whether these weaknesses would impair internal demand.

The data from the first quarter show that euro-zone factories are back. Italy’s emergence from a technical recession was probably the result of a rebound in manufacturing and entirely due to exports — the economy expanded 0.2% in the first quarter compared to the final three months of last year. In France, where the economy grew 0.3%, manufacturing accelerated significantly. In Spain, production bounced back strongly from a poor second half in 2018, driving a 0.7% increase in gross domestic product.

Meanwhile, there is no sign that the labor market is getting weaker: The region’s unemployment rate fell to 7.7% in March from 7.8% in February, hitting the lowest level in more than ten years.

These improvements, alongside rising wages, will continue to help the services sector, which is more dependent on domestic spending. The vicious circle Draghi feared between external conditions and internal demand may have stopped just in time.

This allows a reassessment of the announcements the ECB made last March to stimulate the economy. These included a new round of cheap loans to the banks and the decision to delay the first hike in interest rates to at least the start of 2020.

This set of measures was probably stingier than what it might have been, and did not include some crucial details such as the price of the loans. There was also no sign that the ECB might want to revive asset purchases after ending them in December. This package now looks broadly adequate and is unlikely to need further adjustments when the governing council meets again in the coming months.

Still, the ECB should be as generous as it can be within the limits policy makers have set themselves. There are signs that inflation is coming back, as price pressures in Germany in April vastly exceeded estimates. Yet these were largely due to one-off factors, partly driven by the timing of Easter. Core inflation in the euro zone, which strips out more volatile items such as energy and food, remains well below the central bank’s target of just under 2 percent.

The outlook also remains uncertain. In Italy the government, including finance minister Giovanni Tria, seized at the news that the country had resumed growth to say that this proved the “solidity” its economy. But the prolonged weakness of internal demand, alongside a deeply uncertain fiscal outlook, are a reminder that Rome remains the sick man of the euro zone — and a cause of concern for its partners. The German economy, while much stronger than Italy’s, is also a big question mark, as its manufacturing sector continues to stutter.

In exactly six months, a new president will take office at the ECB. The mild improvements in the euro-zone economy might be enough for Draghi to breathe a small sigh of relief as he comes close to his exit at the end of October. They should be in no way sufficient to calm down his successor, whoever he or she might be.

 

BLOOMBERG

Discovering the gray market

By Tony Samson

MARKETERS are now paying attention to the growing “gray market.” As a marginalized group, old people with lots of money (OPLOM) may not qualify for party-list inclusion. In the 2015 census, the age group of those over 65 years old comprise only 5% of the population. The wealthy segment of seniors can embarrass their cohort age group, such as old people supported by their offspring (OPSBTO) who may have a better chance of party list representation, with a sprightlier acronym like: Just Old Leftovers and Grandparents Society (JOLOGS).

There are challenges for marketers targeting the OPLOMs. Their closets and garages are already full. It’s a market that already has all it needs or wants. So, they no longer buy suits and jackets on impulse, unless they had a liposuction done or survived a debilitating affliction to evolve into the retailers dream for “wardrobe makeover.”

How do OPLOMs spend their still considerable disposable income?

They buy expensive treats. And they don’t bother to take photos as they have little motivation to post anything on their social media, except chats — have you already seen the Avengers? Purchased experiences include traveling in comfort, flying business and checking in at a nice hotel which serves flaky croissants in their buffet breakfasts. Fine dining that does not require waiting in line is an item in the to-do list.

In a wonderful ad from a budget airline, the billboard features a tag — just because you’re old doesn’t mean you don’t want to try new adventures. The photo is of an unaccompanied senior who looks fit in his tank top, on a beach. Yes, that captures the spirit.

Wellness at an advanced age is distinct from illness, which can also eat up the disposable income, even with insurance and what it does not cover. This classification doesn’t include gym (too much sweat) but pampering that is supposed to reward age. Body scrubs, hot oil scalp massage, and coffee and cakes are trivial pursuits worth considering. There is too the no-longer-fashionable ballroom dancing session that comes with a regular dance instructor. More au courant is yoga, pole dancing, or, for the less nimble, taichi — push the mountain; part the clouds.

Downsizing lifestyles for empty-nesters can involve moving to a smaller space. To unburden the clients from paying for all sorts of support staff like gardeners and pool cleaners, the big house can be sold. This is called monetizing the assets — let’s enjoy the money while we can. Ancillary services here include property swaps and trade-ins, as well as storing or selling of surplus house accessories like furniture and art works. The latter is fueling a growing art auction market.

Banks look at high net worth individuals, like OPLOMs, for wealth management. A financial adviser with empathy for clients who repeat themselves is a prized talent for banks. They defend their customers from elderly abuse to which they may be subjected by relatives and caregivers — is that thing I signed a gate pass or the deed of sale for my proprietary club membership?

“Gray market” has another meaning, referring to market activities that are under the GDP radar, but not necessarily illegal. It’s the “black market”, a darker shade of gray, that is off-limits. Transactions in the gray market may not issue receipts and are conducted mostly in cash. Such activities comprise a whole range of services from pet grooming to online sale of cookies.

The gray-to-gray market refers to oldies availing themselves of services in the gray sector. This may entail inter-generational activities, such as an old male accompanied by a much younger female, who is referred to in confectionary terms, such as “eye candy” which is sugar-free. It is a term used for an attractive human accessory applicable to both genders. The expiry date is usually years away.

Curiously, eye candy only refers to an escort accompanying a very much older companion. Attractive and same-age pairs (two eye candies) are called a power couple with their names abbreviated and fused together like a shop that serves iced cappuccino — Jejune? For Jeff and June.

With the growing gray market, restaurants that hope to attract this niche are advised to keep the music low, explain the menu twice, and keep the draft from the aircon aimed at the empty spaces.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com