Category Archives: unemployment

Another World is Possible! Reject the Policies of Neoliberalism! Protect the Economy, Protect the Working Class!

Together with 800 delegates of the World Social Forum on Migrant Labor, the Nagkaisa broad labor coalition would march on November 30 to call on the Aquino administration to reject neoliberal policies and to pursue the policy of labor and economic protectionism.

In two decades, Philippine governments have swallowed hook, line and sinker the policies endorsed by foreign institutions such as the International Monetary Fund (IMF), World Bank and the Asian Development Bank (ADB). Now, it must be said again, the Filipino people are not better off with the policies of liberalization, deregulation, privatization, and flexibilization of labor. Workers are fed up and we demand immediate action.

The proof of the pudding is in the eating. The Filipino workers took the bitter pills of neoliberal policies. But instead of recuperating from crippling poverty, they suffer even more from the following conditions:

Low Wages and Cheap Labor Policy. The minimum wage is not even half the “cost of living” – the necessary costs for a decent life for a working class family. Workers are forced to go on overtime because of starvation wages. Even with the Philippine putting up a “baratilyo” or “bargain sale” of its workers, foreign direct investments have not picked up as fast as it did in our neighbors in the Southeast Asian region.

Outsourcing and Contractualization. To promote cheap and docile workers, employers have restricted the regularization of its workers even for those who perform usually necessary and desirable work for six months. The scourge of contractualization ravaged not only our security of tenure but also our rights to self-organization and bargain collectively.

Lack of regular employment and cheap labor policy force our kababayans to migrate and seek greener pastures overseas; hence, its by-product, the tacit policy of labor migration, which have made our economy dependent on dollar remittances from overseas Filipino workers.

High Power Rates and Privatization of the Power Industry. With the passage of the Electric Power Industry Reform Act or EPIRA on June 2001, power rates in the country have gone up. The cost of doing business in the Philippines is among the highest in Asia due to the high cost of electricity.

Spiraling oil prices. Government insists on the oil deregulation law despite the indisputable fact of unabated oil price hikes and incessant protests from civil society groups including workers’ organizations. The Noynoy Aquino regime put up a review committee on this issue. But instead of drafting proposal to reverse deregulation, it became a mere mouthpiece of the oil oligarchs.

Neoliberal economics is pro-foreign capital and anti-labor. It not only serves the interest of foreign monopoly capital, in the persona of transnational companies. It is a recolonization of the Philippines by foreign powers.

On November 30, the Nagkaisa broad coalition is in unity with regional and global movements against corporate greed. People before profit! Another World is Possible. We call on Noynoy Aquino to adhere to the Constitutional provisions on “full protection to labor” and the “national economy”.

Economic struggle at the factory and shopfloor level must extend to the political arena. The labor movement must transcend traditional localized unionism to lead the discourse on policies and laws that affect the Filipino masses. We challenge the contending parties in the 2013 elections – especially the Liberal Party Coalition (LPC) and United Nationalist Alliance (UNA) to present concrete proposals on how to alleviate poverty and resolve the everyday problems of the masses.

Workers band together for a stronger labor front, Vows to fight for wages, secure jobs and other long-standing issues

As the labor movement gears up for their actions towards May 1 in celebration of the International Labor Day, a new labor center was formed with membership of at least 80,000 workers covering major industries and sectors nationwide.

Sentro ng Progresibong Manggagawa (SENTRO) was launched today in a press conference as they declared April 16 (Monday) as a National Day of Protest with simultaneous rallies to be held in Quezon City, Department of Labor and Employment (DoLE), Welcome Rotonda and Mendiola in the National Capital Region. Regional actions will also be conducted in Cebu, Davao, General Santos City, Cotabato City, and Cagayan de Oro City.

Coming at a time when trade unions are weakened by internecine fights, contractualization and the repressive labor environment, the formation of SENTRO is a breakthrough labor center that promises to help rejuvenate the labor movement through industry and sectoral unionism and by consciously working for broader unities.

“This is the first time that a labor center is formed covering the different industry unions from the hotel and restaurant industry, beverage, metal workers, automotive industry, broadcast media network, transport, energy, postal, banking and the public sector. It also includes national sectoral groups in the informal sector and urban poor, youth and women,” said Daniel L. Edralin, chair of the Alliance of Progressive Labor (APL).

According to group’s Declaration of Unity, neo-liberal capitalism has died many deaths around the globe but continues to exploit the workers because the labor movement is weak and fragmented.

“We bear the brunt of the failure of this neo-liberal globalization. Trying to keep itself afloat, this flawed economic system veered towards even more virulent cruelty and blatant forms of exploitation – contractual employment, decreasing real wages and increasing costs of utilities and public services as a result of privatization and deregulation,” said Frank Mero, president of the Philippine Metalworkers’ Alliance (PMA).

The industry and sectoral unions vowed to reverse the “reign of blood-sucking terror of a failed system that sustains the concentration of wealth and political power amongst the elite of big business, both foreign and local, and their political henchmen.”

SENTRO is deeply committed to work with other major labor groups in forming a broad labor unity that would equal the record of the great Crisanto Evangelista when he founded the Congreso Obrero de Filipinas together with Herminigildo Cruz in 1913 to unite the labor movement.

SENTRO’s nationally-coordinated actions on April 16 will call for the passage of Security of Tenure bill now pending in Congress to stop contractual employment, and increase in minimum wage of workers as initiated by several groups while calling for reforms in the wage fixing mechanism under the regional wage boards.

SENTRO will collectively campaign for the removal of EVAT in oil products and power rates to help bring down prices. “Removing EVAT is only the first step, ultimately we have to scrap the Oil Deregulation Law,” Ernie Cruz, president of the National Confederation of Transportworkers Unions (NCTU), said.

When the labor center marches to Mendiola on Monday, they will remind President Benigno Aquino III that it is in his power to implement practical solutions that would lower the cost of electricity: stop the indexation of the prices of natural gas to international prices of oil and pegging the prices of geothermal steam to the international prices of coal; correct the implementation of ERC’s performance-based rate (PBR) methodology so power firms will not be able to increase rates in anticipation of future expansion and other capital expenditures; and, reform the ERC and insulate it against regulatory capture.

SENTRO will lead the workers’ action in Davao city tomorrow (April 13) on the occasion of the Mindanao Power Summit to protest what they feel are “artificial power shortages”. “The proposed solution to the rolling blackouts – the selling of the Agus-Pulangui Hydro Power Plant – would only worsen the problem,” Jose Apollo Ado, president of the Workers’ Solidarity Network (WSN) said.

“After ten years, it is clear that the Electric Power Industry Reform Act (EPIRA) has miserably failed. EPIRA should be rescinded,” Fatima Cabanag, secretary general of Kapatiran ng Maralitang Obrero (KAMAO), added.

“These are staple workers’ issues. With the commitment of industry and sectoral unions to build up workers’ power and attack this systemic enslavement, we may have hope that the next generations, our offsprings, will not suffer a heavier, more backbreaking and dehumanizing yoke,” said Joann Desiderio, secretary general of the Philippine Independent Public Sector Employees Association (PIPSEA). “We certainly deserve a better Philippines,” she added.

SENTRO is composed of: Alliance of Progressive Labor (APL)– APL Youth –Automotive Industry Workers’ Alliance (AIWA)–Federation of Coca-Cola Unions (FCCU) — Kapatiran ng Maralitang Obrero (KAMAO)– League of Independent Bank Organizations (LIBO)– MARINO– National Alliance of Broadcast Unions (NABU)– National Confederation of Transportworkers Union (NCTU)– National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN)– Philippine Independent Public Sector Employees Association (PIPSEA)– Philippine Metalworkers’ Alliance (PMA)– Pinag-isang Tinig at Lakas ng Anak-Pawis (PIGLAS)– PKI Employees Welfare Union (PEWU)– Postal Employees Union of the Philippines (PEUP)–Workers’ Solidarity Network (WSN)

P-Noy’s Edsa report: Usual ‘straight path’ rhetoric, pro-business bias, palliative reforms

AMID the political circus called the impeachment trial of the Supreme Court’s dubious head, the Edsa People Power 1 uprising’s 26th anniversary was again marked by President Aquino by pouring out his habitual “straight path” rhetoric, his anticipated bias especially for big business, and his naïve trust in superficial social reforms.

This was the scathing remark of the Alliance of Progressive Labor on Aquino’s speech – as well as a critical assessment of his major policies – during the festivities last Feb. 25 at the People Power Monument along the historic Edsa, which was attended by a few thousand people led by top government and security officials.

While correctly admitting that the ousting of the Marcos dictatorship by the 1986 “revolution” has failed to free the vast majority of citizens “from hunger, poverty, injustice, and lack of opportunities to succeed,” Aquino continues to adhere to neoliberal economic programs that have worsened global inequality, the APL said.

Stressing the need to fast-track reforms, Aquino, however, contradicted himself when he commented in his speech that “if the majority of Filipinos do not feel any change, what good is democracy (that was supposedly restored by Edsa 1)?”

The APL clarified that “in the first place, there is no genuine democracy if the nation’s wealth remains at the hands of a very few superrich, who also wield effective political power in our society.”

‘Dismantling the barricades of poverty’ (!)

Aquino has even the gall to proclaim that his “government is dismantling the barricades of poverty” – “binabaklas ng inyong pamahalaan ang mga barikada ng kahirapan” – through the Conditional Cash Transfer program, which is basically an expensive dole-out package first implemented in the country in 2008 by his predecessor, the widely despised Gloria Macapagal-Arroyo, the APL retorted.

Aquino reported that last year an additional 45,000 poor households were added to the CCT’s original target of 2.3 million families from 78 cities, 968 municipalities and 80 provinces in the country. He vowed that these “lifelines” will be provided to at least 3 million impoverished families “before the end of 2012.”

Under the CCT or also called the “Pantawid Pamilyang Pilipino Program (4Ps),” each indigent family identified by the government will be given P1,400 cash at the most a month – P500 for “health and nutrition grant” and P100 for each child (14 years old and below, and a maximum of three every family) for “education grant” – for five years if the beneficiaries will comply with the requirements like sending the children to school and the mothers to undergo regular prenatal and postnatal care.

Admittedly, even the gesture of helping the poor is commendable enough; but the APL emphasized that the government should have focused its plans and resources on long-term and more permanent solutions to poverty like protecting and strengthening the local industries and agriculture, ensuring decent and secured jobs for all, expanding the state’s welfare services for the public, and seriously promoting social justice.

Reliable feedback mechanism, including on whether the program is not fostering dole-out mentality, as well as how to confirm that the intended beneficiaries (not some crooks and politicians) are really receiving the money and they are using it for the intended purposes are not the only problems facing the currently P10-billion CCT program, the APL revealed.

“It’s mind-boggling to think how to squeeze every month P300 for the schooling of three children even in public schools, and P500 for a family’s ‘health and nutrition’ needs. And there’s still much to be desired in the country’s prenatal and postnatal care. Besides, the sheer number of Philippine poor and the enormous amount required to provide each family even a measly P1,400 monthly for five years is staggering,” the APL wondered.

Even the latest (and obviously conservative) government data, the 2009 Family Income and Expenditures Survey (FIES), show that while poverty incidence allegedly declined to 26.49 percent in that year from 35.15 percent in 1988, the ranks of the poor in the same period have still swelled to 23.9 million from 21.3 million.

Income disparity in the country has barely changed since Edsa 1 as the “top 1 percent of families (185,000) have an income equal to the income of the bottom (or poorest) 30 percent (5.5 million),” disclosed a noted ex-government official. He concluded that “since studies show that there is very little of a middle class to speak of, this means that most of the 99 percent are also poor.”

Business confidence, business confidant

Aquino told his audience that under his administration, the country registered “all-time highs in our stock index 16 times.”

And, although trying to be humble, Aquino actually boasted that less than two years after taking office, the country is now enjoying “a refreshing new confidence from the global community,” that is, from ratings agencies closely linked to the international Big Business.

He specifically cited Standard & Poors, Moody’s, and Fitch, the world’s top three credit ratings agencies (the first two are US-based, and the last is headquartered in Paris), as well as Japanese credit ratings companies.

The positive marks the Philippines had garnered were due to “the reforms … in the commerce and trade sector” instituted by his administration, Aquino claimed. He underscored this “achievement” by asserting that: “This is what we call reform. This is what we call results.”

Validating this “business confidence,” Aquino rattled off investment statistics attained in the special economic enclaves run by the Philippine Economic Zone Authority.

Investments in PEZA last year hit P288.3 billion, “the highest in history,” the President enthusiastically testified, adding that since assuming the presidency in June 2010, investments in PEZA reached to P439 billion.

This amount and this early, Aquino announced, already accounts for an astounding 22 percent of the P2.003 trillion total investments put in PEZA in the past 16 years.

Adding to the “list of good news,” Aquino proudly mentioned a study conducted by the Japan External Trade Organization apparently designating the Philippines as “the No. 1 ideal destination of businessmen in Asia, whether in the manufacturing or the services sector.”

This feat is due to the “high quality of work, the skilled and talented workforce, and the low cost of doing business in our country,” Aquino said, quoting the JETRO survey.

Undoubtedly, Filipino workers are among the best not only in Asia but in the world; but, the APL lamented, they are also one of the most exploited highlighted by the worsening job insecurity in the country.

Contractualization is now very rampant, for example, in the burgeoning services sector which is highly coveted by foreign investors, especially in the business process outsourcing or BPO industry, led by the call centers, the APL said.

This rampant non-regular work – hence, in general, with cheaper wages and limited benefits, and trade unions are not allowed – is of course a huge come-on also for foreign investors in many manufacturing firms in the sprawling special economic zones managed by PEZA.

“Thus, both the PEZA report of Aquino and the JETRO survey are not at all surprising; they are expected,” the APL said, adding that “it is precisely because of the official or unofficial state policy of institutionalizing jobs that are cheap, non-unionized and contractual or without security of tenure which caused the outpouring of the so-called ‘business confidence.’”

The APL further pointed out that despite the purported rise in foreign investments and even the claim that the country’s economy is growing, the fruits of this “progress” have failed to benefit the vast majority of the masses.

Prove beyond the rhetoric

Thus, the APL reminded Aquino to go beyond his “daang matuwid” slogan and ensure that concrete steps are made to really address the short-term and long-term needs and aspirations of the majority.

“No amount of feel good statements to describe his administration from the Arroyo regime – like ‘We call this dedication. We call this compassion. We call this the straight and righteous path’ – can truly uplift the lot of the masses unless he go beyond the realm of the rhetoric,” the APL noted.

Workers seek President Aquino’s reversal of decision on PAL case

Koalisyon Kontra Kontraktwalisasyon (KONTRA), a coalition of labor groups against contractual employment sought the reversal of earlier decision of President Benigno Aquino III upholding the outsourcing of PAL workers as they participated on the second day of PALEA’s 3-day Lakbay Hustisya today.

“The presidential intervention in the case of PAL came, not in favor of the aggrieved workers but to protect the interest of Mr. Lucio Tan who is the epitome of corporate greed with a string of tax evasion cases tucked under his belt. President Aquino who claimed to uphold “tuwid na daan” in his leadership sided with the lies perpetuated by Mr. Tan and the PAL management,” said Josua Mata, Alliance of Progressive Labor (APL) Secretary General and KONTRA Co-convenor.

Mata also criticized the management of PAL for continuously spreading malicious claim that former employees are harassing them. “PAL should stop spinning tales and distorting reality. The management is the one who is harassing PALEA. It was PAL which tried to fool the Regional Trial Court to issue a Temporary Restraining Order against a legitimate labor action. Failing that, it utilized goons to attack the picket lines recently, which led to workers being hurt,” Mata added.

KONTRA participated in the 3-day march of PALEA around Metro Manila that started yesterday passing through the PAL offices, Regional Trial Court and the Court of Appeals before retiring for the night at Quiapo Church. On the second day of the protest action, PALEA and KONTRA members went to the house of Tan in Quezon City and passed by the office of National Labor Relations Commission. The groups are set to proceed to Malacañang tomorrow.

Mata explained that the protest action is the only recourse left for the workers as they cannot squarely compete with the well-financed public relations machinery of the PAL management. “PAL has only to blame itself for the current mess it is in. Truth is, the outsourcing program is a complete failure but the airline management is trying to bounce back by relying on dirty public relations trick. That is why, it is in the best interest of the public that we continue to campaign for the people to boycott this airline,” Mata added.

Recalling the historical context of this problem, Mata said that way back in 2009 and behind the public eye, the management is set to terminate employees to prevent the union under its new leadership to begin its negotiations for a new Collective Bargaining Agreement (CBA) which had been under moratorium for the past ten years since 1998. “The management wanted to deny the employees the opportunity to improve their wages and benefits through collective negotiations,” Mata said.

According to PALEA, the terminated employees comprise 70% of the total number of rank-and-file employees who are PALEA members and 62% of the union leadership.

The groups averred that this outsourcing scheme is a strategy to deliberately interfere with the CBA negotiation that is already due after the airline exited the rehabilitation program in 2007.

In 1998, PALEA was constrained to suspend CBA negotiations that the workers said was an attempt to help the nation’s flag carrier to recover from its financial losses. In 2009, PALEA signified its intention to enter into a new CBA but the PAL management responded instead by announcing its intention to “spin-off/outsource” the three departments – airport services, in-flight catering, and call center operations.

“Malacañang, in upholding this wanton denial of workers’ rights, is even worse. President Aquino bought all the lies perpetuated by the airline management jeopardizing the lives and livelihood of PALEA members,” said Mata.

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