Archive for May, 2007

Farcical benefits for workers

Malacañang’s Labor Day announcement of non-wage benefits for workers was, not surprisingly, rejected by labor groups. (Inquirer, 5/2/07) The announcement offered false hopes to workers who continue to face the threat of layoffs and joblessness.

For example, President Gloria Macapagal-Arroyo claimed that her administration was able to create one million jobs in 2006. What she did not say was that she failed to meet her target of generating one million jobs in each of the previous five years.

Secondly, the national government did not actually provide workers with benefits, considering that the money that will be spent will come from contributions, deposits and earnings of members of the Government Service Insurance System (GSIS), the Pag-Ibig Fund and the Social Security System. The fact remains that the workers will have to pay back their loans even as they already have very limited income to cover their families’ basic needs.

What Ms Arroyo deliberately chose not to mention was that the non-wage benefits will be useless to a large number of Filipinos simply because they do not have jobs in the first place; that 30 percent of the public sector employees will not benefit from GSIS loans because they will be laid off under the government’s so-called rationalization program; that the jobs created in the past three years were mere replacements of vacated posts and not really new ones; that most of the jobs available are good for four to five months only, without security of tenure, and in less than six months down the road, the contractual workers will be back in the streets or attending more job fairs, again looking for work.

The non-wage benefits will only drive more contractual workers, who have no real assurance of getting new jobs, to go after loans.

It would be interesting to note that the announcement comes after the Department of Budget and Management and the administration-dominated House of Representatives’ ways and means committee blocked the passage of a bill that would have given minimum wage earners tax exemptions. Filed immediately after the imposition of the expanded value-added tax, the bill sought to increase the amount of non-taxable income to P50,000 annually, with corollary increases in tax exemptions for every wage bracket. The bill was approved on third and final reading last year and a similar measure was approved by the Senate. However, the House ways and means committee refused to hold a bicameral conference to enact the bill.

The public has to know the real score behind these “non-wage benefits.” These are not gifts from the administration but measures that the workers will still have to work for before they get to enjoy them.

DANNY L. EDRALIN, chair, Alliance of Progressive Labor

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this article appeared on inquirer.net http://opinion.inquirer.net/inquireropinion/letterstotheeditor/view_article.php?article_id=65901


Introduction

One of the daily broadsheets a few days ago bannered that the economy was forgotten in the campaign for the 2007 midterm elections. Indeed. And with it, any meaningful discussion on the urgent concern of most voters – the need for decent work for all – was sidelined.

It is disconcerting to know that all the top contenders to the Senatorial post have inadequate solutions to the worsening jobs crisis. Meanwhile those that have a more comprehensive view of the problem hardly make it to the magic circle of 12.

It is a shame that, except for Kiko Pangilinan, all senatorial candidates invited to participate in the series of “job interviews” conducted by the Alliance of Progressive Labor (APL) did not show up. Failing to interview the various “job applicants”, the APL leaders resorted to using the candidates’ written platform, media pronouncements as well as their answers to Newsbreak’s survey (The Candidates and their Stand on National Issues) particularly on questions concerning legislative agenda on job security and employment opportunity.

The labor center launched the said “job interviews” last month to evaluate the Senatorial “job applicant’s” capacity to solve the jobs crisis.

At best, we found some candidate’s platform inadequate. Worst, some are plainly clueless how they would address the jobs crisis!

Had this been a real “job interview”, none of them would have made the cut. And there lies the problem. Workers will vote for people who are may not be qualified for the job!

The Criteria

The APL believes that government should give priority to the objective of attaining full employment. This means that all policy instruments should be coordinated towards the pursuit of a development strategy centered on full employment.

To achieve full employment, the country needs a roadmap for an alternative development paradigm. One that promotes industrialization based on the development of the local economy. This can only be done by breaking with the discredited neoliberal straightjacket of “one size fits all” that successive governments have been implementing these past few decades.

The drive for full employment carries many implications for a whole range of policies: industrial, agrarian reform and rural development, fiscal and monetary, investment, trade, public sector reform, enterprise development and education policies.

The soundness of a candidate’s platform for full employment, if any, was assessed based on the abovementioned policies.

Observations

We would mostly limit our observations to those who made it to the magic circle in the recent SWS survey on the senatorial race (Inquirer, May 10, 2007).

None of the top contenders presented a comprehensive agenda for full employment. Candidates who made it to the magic circle have either inadequate solutions or, worst, are plainly clueless how they would address the jobs crisis! There is a poverty of ideas on how to solve the jobs crisis in all the political camps – pro-administration, opposition and independents.

Most seems to be contented with supporting small and medium scale enterprises. Others offer livelihood programs and increase the employability of workers through trainings. Some would go for pump priming through infrastructure development. These proposals maybe useful in creating jobs, but by themselves, they will not solve the jobs crisis. Addressing the jobs crisis is a complex problem that requires a comprehensive response.

If we want to generate jobs for more than 10 million Filipinos who are unemployed or underemployed, we would need more than a mishmash of palliative measures. As previously mentioned we need a roadmap for an alternative development paradigm that promotes industrialization based on the development of the local economy.

Unfortunately, as we will see, most of the top contenders have given up on industrialization and agrarian reform.

No clear industrial policy. For almost all of those who are in the magic circle, what amounted to an industrial policy would commonly be a program that would support small and medium scale enterprises, expand BPOs and develop tourism.

While these proposals may be important, it will not be able to absorb the surplus labor we have. The quality of jobs generated in these areas is wanting as well. It should also be noted that most sweatshops are found in small and medium scale enterprises. Meanwhile, health problems related to work in BPOs are now slowly being revealed.

To their credit, only Loren Legarda and Chiz Escudero called for industrial development, but even they lacked clear positions on other measures that are necessary to realize any form of industrialization such as agrarian reform, fiscal, monetary and trade policies, to name a few.

Deafening Silence on Agrarian Reform. None of the top contenders mentioned anything about pursuing agrarian reform, a crucial ingredient for industrialization. At best, they called for more farm-to-market roads, a halt to land conversion, increasing budgetary allocation for agri-business centers and cooperatives. But no one dared to call for the completion of agrarian reform!

No Challenge to Neoliberal Hold on Fiscal and Monetary Policies. None of the top contenders are daring enough to challenge the neoliberal hold over fiscal and monetary policy. No one seems to realize that monetary policy should be used more broadly to encompass development objectives. That rather than focus on controlling inflation, this policy must have full employment as its main goal, subject to inflation constraints.

Using the responses to Newbreak’s survey, only Recto and Zubiri have mentioned fiscal and monetary policies, inadequate as they are.

It is interesting to note that only the senatorial candidates of Kapatiran have a clear pronouncement on the repeal of the Automatic Appropriations Act!

Some Interesting Ideas and Some Dangerous Proposals on Investment Policies. Using Newbreak’s survey again, only Lacson, Pangilinan, Recto and Cayetano gave statements on investment policies. Recto said he intends to earmark “20 percent of tax collections of the previous year for infrastructure” while Cayetano calls for the creation of an “OFW’s Investment Corporation.” Presumably, Cayetano intends to mobilize OFW remittances for investments. These are interesting proposals that merit a closer study but should be advanced as part of a comprehensive agenda for industrialization.

On the other hand, Lacson’s proposal for an amendment to the constitution that “will open equity and ownership to foreign investors in domestic corporations to encourage more investments” is dangerous. Investment liberalization will leave domestic corporations vulnerable to hostile takeovers, and their workers defenseless against layoffs. A sound investment policy should allow protection to selected industries. After all, no country industrialized without protective measures against undue foreign competition at the start.

During our dialogue with the staff of Kiko Pangilinan, we raised our concerns regarding the senator’s proposal for an “investment-friendly environment through labor market reforms.” We pointed out that such a proposal can lead to further weakening of labor regulations but would not lead to more investment as the ADB itself, in one of its studies, revealed. We have yet to receive a clarification from the Senator.

Absenc
e of a Clear Trade Policy.
At a time when the Arroyo administration is negotiating free trade agreements left and right, it is alarming to realize that none of the top contenders have a clear policy on trade relations. Believing that the Legislature should provide clear parameters to the Executive on how trade negotiations should be conducted, the candidates’ silence on this area leaves us with a distressing feeling that our future Solons would just allow Malacañang, by default or by consent, to negotiate away all our “policy spaces”, our ability to have the flexibility to use trade policies to promote industrialization.

Lack of an Effective Labor Policy. Again using the Newsbreak’s survey and the policy pronouncements of the top contenders, it appears that worker’s rights and welfare is not on top of their agenda. No one dared mention anything about contractualization and casualization!

Too bad that the only candidate that dared to do so, Sonia Roco, who declared that she intends to “minimize if not totally eliminate culture of casualization and contractualization”, is yet to make it to the magic circle! Escudero seems to recognize the problems with these harmful practices but did not elaborate on a clear proposal on how to address it.

Zubiri, Angara and Pangilinan were the only ones who have included labor policy in their platforms. Zubiri called for the raising of labor welfare standards and law compliance and an increase in both SSS and GSIS benefits while Angara wanted “total overhaul of the labor code to cope up with the changing labor needs and situation.”

Conclusion

All Senatorial candidates included in the magic circle according to the latest SWS survey (May 10, 2007) were measured and are found inadequate. Tinimbang sila, ngunit kulang!

At best, we found some candidate’s platforms inadequate. They may have some good ideas, but none of them have a comprehensive solution to the problem.

Some have simplistic ideas. Villar seems to think that the jobs crisis can be solved simply by ensuring the employability of workers through trainings. What can trainings do when there are no jobs! Meanwhile Lacson seems to believe that one can solve the jobs crisis if only there is no corruption. If only things are as simple as what these Senators think, then workers need not worry about the jobs crisis!

We should therefore remind all workers not to pin too much hope for whomever they vote for the Senate.

“None of the top contenders presented a comprehensive agenda for full employment. Candidates who made it to the magic circle have either inadequate solutions or, worst, are plainly clueless on how they would address the jobs crisis. There is a poverty of ideas on how to solve the jobs crisis in all the political camps – administration, opposition and independent.”

This was the statement of the labor group, Alliance of Progressive Labor (APL) as it looked into the candidates’ written platform, media pronouncements as well as their answers to the Newsbreak magazine’s survey (The Candidates and their Stand on National Issues), particularly on questions concerning legislative agenda on job security and employment opportunity.

“It is a shame that, except for Kiko Pangilinan, all senatorial candidates we invited to participate in the series of “job interviews” did not show up,” said Danny Edralin, APL Chairperson.

The labor center launched “job interviews” last month to evaluate the “job applicant’s” capacity to solve the jobs crisis. Among the candidates sought by the labor center to be interviewed are re-electionist Senators Kiko Pangilinan and Ralph Recto, former Senator Loren Legarda and former Rep. Chiz Escudero.

“Government should give priority to attaining full employment. This means that all policy instruments should be directed towards a roadmap for industrialization based on the development of the local economy,” said Edralin.

Edralin said that the drive for industrialization requires a whole range of alternative policies on industrial, agrarian reform and rural development, fiscal and monetary, investment, trade, public sector reform, enterprise development and education policies.

“Tinimbang ka nguni’t kulang”

“Fulfilling the candidates’ promises of uplifting the lives of Filipinos is doomed to fail if the economy’s inability to provide full, productive and decent work to Filipinos will remain,” said Edralin.

Edralin said most of the top contenders seem to be contented with supporting small and medium scale enterprises, offering livelihood programs and increasing the employability of workers through trainings.
“If only things are as simple as what these Senators think, then workers need not worry about the jobs crisis,” said Edralin.

According to Edralin, generating jobs for more than 10 million Filipinos who are unemployed or underemployed requires a comprehensive response and not a mishmash of palliative measures.

No clear industrial policy.
Edralin said for almost all of those who are in the magic circle, what amounted to an industrial policy would commonly be a program that would support small and medium scale enterprises, expand BPOs and develop tourism.

“These proposals may be important but will not be able to absorb the surplus labor we have. It should also be noted that most sweatshops are found in small and medium scale enterprises. Meanwhile, health problems related to work in BPOs are now slowly being revealed,” said Edralin.

APL found that only Legarda and Escudero called for industrial development but lacked clear positions on the agrarian reform measures, fiscal, monetary and trade policies that are necessary to realize any form of industrialization.

Deafening Silence on Agrarian Reform. “None of the top contenders dared to call for the completion of agrarian reform, a crucial ingredient for industrialization. At best, they called for more farm-to-market roads, a halt to land conversion, increasing budgetary allocation for agri-business centers and cooperatives,” said Edralin.

No Challenge to Neoliberal Hold on Fiscal and Monetary Policies. According to Edralin, none of the top contenders are daring enough to challenge the neoliberal hold over fiscal and monetary policy.

“No one seems to realize that monetary policy should be used more broadly to encompass development objectives. That rather than focus on controlling inflation, this policy must have full employment as its main goal, subject to inflation constraints. Only Recto and Zubiri have mentioned fiscal and monetary policies, inadequate as they are,” said Edralin.

Proposals on Investment Policies. Cayetano calls for the creation of an “OFW’s Investment Corporation” to mobilize OFW remittances for investments.

“These are interesting proposals that merit a closer study but should be part of a comprehensive agenda for industrialization,” said Edralin.

Edralin found that Lacson’s proposal for an amendment to the constitution that “will open equity and ownership to foreign investors in domestic corporations to encourage more investments” is dangerous.

“Investment liberalization will leave domestic corporations vulnerable to hostile take-overs leaving the workers defenseless against layoffs. A sound investment policy should allow protection to selected industries. After all, no country industrialized without protective measures against undue foreign competition at the start,” said Edralin.

During the dialogue of APL with the staff of Pangilinan, the group raised their concern regarding the senator’s proposal for an “investment-friendly environment through labor market reforms.” The group said such a proposal can lead to further weakening of labor regulations but would not lead to more investment. The group is yet to receive a clarification from the Senator.

Absence of a Clear Trade Policy. Edralin said at a time when the Arroyo administration is negotiating free trade agreements left and right, it is alarming that none of the top contenders have a clear policy on trade relations.

Believing that the Legislature should provide clear parameters to the Executive on how trade negotiations should be conducted, the candidates’ silence on this area leaves us with a distressing feeling that our future Solons would just allow Malacañang, by default or by consent, to negotiate away all our “policy spaces”, the remaining flexibility we have to use trade policies to promote industrialization.

Lack of an Effective Labor Policy. “No one dared mention anything about contractualization and casualization. Too bad that the only candidate that dared to do so, Sonia Roco, who declared that she intends to “minimize if not totally eliminate culture of casualization and contractualization”, is yet to make it to the magic circle,” said Edralin.

Edralin said Escudero seems to recognize the problems with these harmful practices but did not elaborate on a clear proposal on how to address it. Zubiri called for the raising of labor welfare standards and law compliance and an increase in both SSS and GSIS benefits while Angara wanted “total overhaul of the labor code to cope up with the changing labor needs and situation.”

“All Senatorial candidates included in the magic circle according to the latest SWS survey were measured and are found inadequate. They may have some good ideas, but none of them have a comprehensive solution to the jobs problem. We should remind all workers not to pin too much hope for whomever they vote for the Senate,” Edralin concluded.

The Alliance of Progressive Labor (APL) and the Confederation of Independent Unions in the Public Sector (CIU) today held a caravan to emphasize the need to put workers’ rights at the forefront of platforms being pursued by candidates in the run up to the polls next Monday.
 
“We call on candidates to address the worsening jobs crisis,” said APL Chairperson, Daniel L. Edralin. “Candidates cannot talk about poverty eradication and a better future for all if they cannot present a clear agenda on what measures they will pursue to provide everyone with a decent work,” Edralin added.
 
Surveys have consistently shown that finding a good job is one of the most urgent concerns of every Filipino of voting age.
 
With at least 10.066 million estimated to be unemployed or underemployed and at least 1.5 million new workers expected to enter the labor markets every year, the country faces the formidable challenge of creating large numbers of productive and better paying jobs to address the lingering jobs crisis.
 
“Workers deserve more than the lip service that most, if not all Senatorial candidates currently pay to the jobs crisis,” Edralin said. “What we need is an economic agenda for full employment backed by time bound, feasible, and credible policies,” he added.
 
The APL and CIU began their caravan from Quezon City. From there the caravan snaked through Manila before going back to Quezon City via España Avenue.
 
The workers distributed leaflets and flyers urging the public to vote for Akbayan party-list. “Akbayan is the only party-list which we believe carries our labor agenda and looks at labor issues through the same lens as us,” Edralin added.
 
APL and CIU vowed to mobilize its combined membership of 120,000 to ensure Akbayan’s re-election.

Workers urged: Vote Against Gloria, Vote for AKBAYAN Party-list

Under the Theme “Manggagawa, mag-AKBAYAN laban kay Gloria,” thousands of workers from the Alliance of Progressive Labor (APL) and the Confederation of Independent Unions ln the Public Sector(CIU) gathered in Metro Manila, Lipa, Cebu, Davao City, Bacolod, Cagayan de Oro City, Zamboanga City and Cotabato City to commemorate the 104thInternational Labor Day, urging other workers to support candidates who would vow to unearth the truth behind the ‘Hello Garci’
controversy.

APL and CIU enjoined the Filipino working class to use the transformative power of their votes to use the May 14 polls as a referendum against the Arroyo administration.

The workers declared their support for AKBAYAN Party-list. APL and CIU command at least 120, 000 workers in the private, public, formal and informal sectors. “Re-electing AKBAYAN, which has consistently championed the rights of workers and other marginalized sectors, would held break the backbone of patronage politics in the country. Its 9-year track record in advancing and defending workers’ rights and welfare proves itscommitment to give voice to workers in Congress,” APL Chairperson Danny Edralin said.

CIU Chairperson Emmako Naldoza, meanwhile, stressed that a vote for AKBAYAN is a vote for full employment. “Inside and outside Congress, AKBAYAN has pushed for full employment. Its agenda is rooted in the aspirations of mass movements and it has championed decent work and meaningful wages for workers. Its employment platform presents a concrete alternative versus the administration’s neoliberal and market-oriented labor policies,” Naldoza said.

AKBAYAN vowed to maintain its independent and oppositionist stance in Congress. The party is confident an anti-GMA sentiment would prevail on election day. “The people’s collective will against rampant corruption, cheating, killings and bad governance would certainly punish the truth-challenged government of Mrs. Arroyo, her electoral riggers and recycled politicians,” AKBAYAN Representative and First Nominee Risa Hontiveros said.

She is also confident that despite the entrance of administration fronts in the party-list race, AKBAYAN will prevail. “No amount of election cheating and bullying from the camp of Mrs. Arroyo will deny AKBAYAN and the people of victory. Despite the continuing harassment and persecution we are encountering from the hands of the military and even from the armed Left, we are confident of the public’s support for
AKBAYAN’s progressive brand of politics. Clearly, the tide is turning in favor of meaningful change, in favor of democratic left parties like AKBAYAN,” Rep. Hontiveros said.

Meanwhile, University of the Philippines Professor and AKBAYAN second nominee Walden Bello challenged the Filipino workers and the electorate to be vigilant against the proliferation of fake party-list groups allegedly being ran by Malacanang. “We must stop the rabid bastardization of the party-list system being committed by Mrs. Arroyo’s political pimps and paid hacks,” Bello said.

“We must not only expose these administration-backed party-lists for what they are but essentially boycott them. Instead, let us vote for full employment. Let us vote for decent wages. Let us vote for the progressive transformation of our economy where the imperatives of the market are not used to undermine the dignity of labor. Let us
therefore guarantee once again the success of AKBAYAN party-list,” Bello stressed.

The nominees of AKBAYAN for the coming 2007 elections are Risa Hontiveros, currently one of AKBAYAN’s representative in the 13th House of Representatives and a well-known peace and women advocate; UP Professor Walden Bello, an internationally renowned and respected author, academic, and political analyst; and Gico Dayanghirang, a legitimate son of Mindanao, committed to issues of agrarian reform and rural development.

Thousand of workers from different federations and unions under the leadership of the Alliance of Progressive Labor (APL) pledged their support for and commitment to AKBAYAN Party-list. They marched from Welcome Rotonda to Mendiola where they finished their program.