ATM fees, other charges must be cheaper under the regime of automation – labor group

The workers’ group Partido Manggagawa (PM) won’t let the bad idea of higher ATM fees die down despite assurances made by the Bangko Sentral ng Pilipinas (BSP) and the Department of Trade and Industry (DTI) that they will oppose the banks’ plan to increase their ATM charges.

“Truth must be revealed by the banks on this issue: That the more the system is becoming smart and efficient, which is what automation achieves, the more the services become widely available and cheaper, if not free. The banks’ plan to impose higher fees on ATM transactions and other charges simply violates the economics of automation,” asserted PM Chair Rene Magtubo.

The group argues that under the regime of Industry 4.0 or automation, robots, artificial intelligence (AI) and other smart machines displace humans in the workplace to achieve more economy and productivity. In the case of banks, human tellers were replaced by ATMs and AI, thus, labor costs were saved. 

“So where has the economics of automation gone under this scenario? Truth is, after human tellers were robbed of their jobs, these banks were planning to rob their depositors more to depreciate the robots and to compensate their CEOs. This is corporate greed, plain and simple,” lamented Magtubo.

The planned hike will affect approximately 6 to 8 per cent of minimum wage in NCR and Calabarzon areas, according to PM.

The groups argues further that much of these ATMs must have already been depreciated over time since it was utilized by the banking system and therefore the cost of capital recovery must be very minimal at this point in time.  Other than cost of capex, operations and maintenance the group said, the planned hike is for greed if not outright highway robbery.

15 August 2019

Labor group slams ATM fee hike

 

The labor group Partido Manggagawa (PM) declared its opposition to the planned increase in ATM fees. “Charging P15 per withdrawal is already burdensome. Doubling the fee would be onerous on workers receiving their wages through payroll ATM accounts,” stated Rene Magtubo, PM national chair.

He explained that “P15 is almost 3% of the daily minimum wage in NCR. Worse it is around 4% of the daily of a minimum wage earner in the Cavite economic zone. Doubling the ATM fee would mean banks taking 6 to 8% of the minimum wage of workers per withdrawal. This is highway robbery.”

The group called on the Bangko Sentral ng Pilipinas to use its regulatory power to freeze once more any ATM fee hikes. PM also supported the congressional inquiry on the issue.

“We call on the bankers to moderate their greed. Unlike workers’ wages, banks’ profits are higher by 26% compared to last year,” Magtubo opined.

He reminded the banks that workers are forced to withdraw from ATM’s since salaries are now commonly received through payroll accounts. “It is no fault of the workers that they have to transact through ATM’s. And of course, the most convenient way is to access your account is from the nearest ATM which is not necessarily one from their payroll bank. Workers would not want to waste time and fare by going to their own bank’s ATM if is one or several rides away.”

August 13, 2019

Labor Day strike in Cebu? DOLE asked to respect KEPCO workers right to strike over low pay, union busting

Press Release

April 29, 2015

The labor party Partido Manggagawa (PM) today called on Labor Secretary Rosalinda Baldoz to “stay” its use of assumption of jurisdiction powers as requested by the management of KEPCO-Salcon Power Corp. in Naga, Cebu. “We call on Secretary Baldoz to give a reprieve to the KEPCO unions so that they can exercise their right to strike against low pay and union busting. We hope Sec. Baldoz will remain true to her word that government intervention in labor disputes is now a thing of the past,” asserted PM chair Rene Magtubo.

Energy Secretary Carlos Jericho Petilla has said that a power outage may hit Mactan City and the island of Negros should a strike push through at the 200MW KEPCO power plant. However, PM avers that KEPCO is refusing to meet its workers demands as it expects that the planned strike will be stopped through an assumption of jurisdiction (AJ) order.

The rank-and-file and supervisory workers who are affiliated to WSN-Sentro can hold a strike as early as tomorrow but the unions will still attend a mediation hearing scheduled tomorrow morning. They are also meeting the Cebu Governor Hilario Davide III today.

“The rank-and-file and supervisory KEPCO unions have already offered to avert a strike by narrowing its main demand to the reinstatement of union leaders fired because of union activities. But we suspect management is still playing hardball as it expects an AJ order against the unions,” insisted Magtubo.

He added that “We ask KEPCO to moderate its greed. The power industry is the most profitable sector of the economy with the richest Filipinos and foreign investors like Korea’s KEPCO engaged in an industry that is structured in such a way that there is no possible way to lose money. Every cent of business expense is passed on to consumers, mainly the middle class and the working poor, thus we have one of the most expensive electricity rates in world.”

PM avers that productivity in the power sector is the highest of all industries yet the fruits of labor appear not as wages for workers but as profit for capitalists. “According to the Census of Philippine Business and Industry in 2012, the power industry’s labor productivity is at PhP 4 million annually per worker. In contrast, KEPCO rank-and-file workers receive an average of just PhP 13,000 per month or PhP 169,000 per year. Thus workers wages at KEPCO amounts to just 4% of the industry’s labor productivity,” Magtubo explained.

He asserted that “The meager wages of KEPCO workers was the motive for them to unionize and bargain as a means of enhancing their working and living standards. But rather than respect labor’s right to self-organization and collective negotiations, KEPCO is busting the supervisors union and harassing rank-and-file workers whose union has already been certified as the sole and exclusive bargaining agent.”

Labor group to Petilla: Ask KEPCO to grant workers demands to avert strike

Press Release

April 23, 2015

The labor group Partido Manggagawa (PM) called on Energy Secretary Carlos Jericho Petilla to ask the management of KEPCO-Salcon Power Corp. in Cebu to grant the demands of its workers in order to resolve the labor dispute. Petilla was quoted a few days ago as appealing to KEPCO workers not to proceed with a planned strike.

Yesterday KEPCO workers voted to hold a strike. PM announced its solidarity with the KEPCO workers and that the resolution of the labor dispute is among the demands for the coming Labor Day mobilization.

“If Secretary Petilla wants to solve the problem at KEPCO, he must focus on the cause not the effect. KEPCO workers’ legitimate use of the right to strike is simply a reaction to the union busting and unfair labor practice of its management. Petilla’s energy is better used exerting moral suasion on KEPCO to respect labor rights and start bargaining with the unions to improve workers wages and working conditions,” argued Rene Magtubo, PM national chair.

He added that “We ask KEPCO to moderate its greed. The power industry is the most profitable sector of the economy with the richest Filipinos and foreign investors like Korea’s KEPCO engaged in an industry that is structured in such a way that there is no possible way to lose money. Every cent of business expense is passed on to consumers, such as the middle class and the working poor, thus we have one of the most expensive electricity rates in world.”

Last week KEPCO workers together with supporters from PM and the labor center Sentro held a protest at the Naga, Cebu plant of KEPCO. The rank-and-file union KEPCO Cebu Employees Association and supervisors union KEPCO Cebu Supervisors Association, both affiliated to WSN-Sentro, filed notices of strike for unfair labor practice and union busting respectively last April 8.

PM avers that labor productivity in the power sector is the highest of all industries yet the fruits of labor appear not as wages for workers but as profit for capitalists. “According to the Census of Philippine Business and Industry in 2012, the power industry’s labor productivity is at PhP 4 million annually per worker. In contrast, KEPCO rank-and-file workers receive an average of just PhP 13,000 per month or PhP 169,000 per year. Thus workers wages at KEPCO amounts to just 4% of the industry’s labor productivity,” Magtubo explained.

He asserted that “The meager wages of KEPCO workers was the motive for them to unionize and bargain as a means of enhancing their working and living standards. But rather than respect labor’s right to self-organization and collective negotiations, KEPCO is busting the supervisors union and harassing rank-and-file workers whose union has already been certified as the sole and exclusive bargaining agent.”

Protests vs. Meralco rate hike spreads outside Manila as coordinated picketing staged

Press Release

December 16, 2013

The militant Partido ng Manggagawa (PM) staged a coordinated picketing of Meralco branches as protests against the huge power rate hike intensified at the grassroots level and spread outside Metro Manila. Meralco branches in Paranaque, Rizal and Cavite were picketed this morning and afternoon by several hundred workers and urban poor.

Also today, the PM spokesperson together with leaders of other groups formally asked for an anti-competition inquiry on Meralco’s rate hike. The request was filed with the Office for Competition which is under the DOJ and was created by E.O. 45 series of 2011.

“If competition exists in the power industry then business interests would collide but under EPIRA, the players collude,” stressed Wilson Fortaleza, PM spokesperson, as he joined the filing of the request for inquiry on unfair competition against Meralco and generation companies.

He added that “It is futile to pursue an honest scrutiny of Meralco’s huge rate hike through the ERC which is totally captured by monopolists in the power industry. Instead we hope the Office from Competition can give a fair hearing to the complaint. If PNoy is serious about investigating Meralco’s hike, then he can do something through the Office for Competition which is under his authority, unlike the ERC.”

At 10:00 am today, PM members trooped to the Meralco branch in Tambo, Paranaque and Antipolo City in Rizal. Later at 3:00 pm, other PM members in Cavite picketed branches in the towns of Rosario and Dasmarinas.

In the next few days, PM will continue the series of protests with pickets in Marilao, Bulacan and GMA, Cavite.

Advisory: Anti-competition inquiry vs Meralco; coordinated picketing of Meralco branches

Groups to ask for anti-competition inquiry

as pickets to be held in outlying Meralco braches

WHAT: Picket-protests and request for anti-competition inquiry vs. Meralco

WHEN: Tomorrow, December 16, 11:00 am

WHERE: Department of Justice (DOJ), Faura, Manila

DETAILS: Members of the Partido ng Manggagawa will have a picket-protest tomorrow at the DOJ as their leaders together with other groups and personalities formally ask for an anti-competition inquiry on Meralco’s rate hike. The request will be filed with the Office for Competition which is under the DOJ and was created by E.O. 45 series of 2011.

Also tomorrow the protests vs. Meralco’s fare hike goes to the grassroots and expands outside Metro Manila with a coordinated picketing of branches in Paranaque, Rizal and Cavite. Between 10:00 am and 11:00 am tomorrow, workers and poor will picket Meralco branches in Tambo, Paranaque; Antipolo, Rizal; and the towns of Rosario and Dasmarinas in Cavite.

“It is futile to pursue an honest scrutiny of Meralco’s huge rate hike thorugh the ERC which is totally captured by monopolists in the power industry. Instead we hope the Office from Competition can give a fair hearing to the complaint. If Pnoy is serious about investigating Meralco’s hike, then he can do something through the Office for Competition which is under his authority, unlike the ERC,” according to Wilson Fortaleza.

P4.15/kWh power hike is bonus for doing nothing – labor group

PRESS RELEASE

09 December 2013

Just for doing nothing, Meralco and several generation companies (Gencos) were rewarded a whooping bonus of P4.15/kWh, the labor group Partido ng Manggagawa (PM) said in a statement.

 

According to PM, the impending increase, the highest in the country’s history and in the world, could have been avoided had Meralco and gencos planned for replacement power to address the expected load gap from Malampaya’s scheduled regular maintenance.

 

“But in a privatized industry regime under EPIRA, power utilities earn handsome profit just by doing nothing and even during times of calamities. Power utilities like Meralco control the whole industry from generation to transmission to distribution and can thus exercise monopoly pricing limited only by what the market can absorb, meaning what the consumers are willing to pay in exorbitant electricity costs,” said PM spokesman Wilson Fortaleza.

 

About 2,700 MW of power from Sta. Rita, San Lorenzo, and Ilijan plants were lost due to the shutdown of Malampaya. Luzon needs at least 6,000 MW to meet its peak load demand.

 

“Imagine a deficit of 2,700 megawatt, an anticipated crisis, yet Meralco and Gencos did nothing but wait for the billing period and impose their new and adjusted rates,” lamented Fortaleza.

 

The group, which joined the Freedom from Debt Coalition and Nagkaisa in a picket held at the ERC this morning, added that the crisis is made worse when the government, particularly the Department of Energy (DoE) and the Energy Regulatory Commission (ERC), “stood idle in the face of the surging tsunami of price hikes in the electricity market.”  The government should have disallowed other power plants to shutdown simultaneously with Malampaya to ensure stability of supply in the Luzon grid.

 

Fortaleza explained that replacement power is a global template for every power supply contract since outages, both regular and forced, is routine in the power system. In many PSA’s the obligation to find replacement power or plan for alternative set up belongs to Gencos since they have contracts to comply in ensuring reliable supply of power to their customers. 

 

Unfortunately, said Fortaleza, most of ERC-approved PSAs assigned replacement power to Meralco and the Wholesale Electricity Spot Market (WESM), where spot prices which as of yesterday range from P17/kWh to P52/kWh.

 

Fortaleza added that Gencos have options to avoid the instability and he cited the case of Sta. Rita and San Lorenzo.  Based on First Gen’s submission to the Philippine Stocks Exchange (PSE) on March 20, 2012, it explained that,“Although the Sta. Rita plant is intended to operate on natural gas, if delivery of natural gas is delayed or interrupted for any reason, the plant has the ability to run on liquid fuel for as long as necessary without adverse impact to its operation or revenues.” The same business model goes with San Lorenzo.

 

Now did Gencos, Meralco, and the government considered this option?

 

“No, they just did nothing,” concluded Fortaleza.

Predatory MERALCO price hike slammed by NAGKAISA

Press Release

December 6, 2013

Nagkaisa

Meralco already insured against maintenance shutdowns, Power Supply Agreements cover Meralco risk with power providers

The NAGKAISA labor coalition denounced the December P3.50 per kWh rate increase as an immoral imposition and an unconscionable predatory move in the face of our massive national suffering and despair. Instead of moderating its greed, MERALCO and the generating companies First Gas (Sta. Rita), South Premier Power Corporation (Ilijan) and Therma Mobile, Inc. (San Lorenzo) – which are its cohorts – chose to further impoverish hardworking Filipinos and complicate the already difficult road to national recovery.

MERALCO residential rates currently pegged at Php12.46 per kWh will now be hiked to Php15.96 per kWh, representing a 28% increase. The new rate is equivalent to US$ 37 cents per kWh. That is the highest residential rate, bar none, in the WORLD. Its consequences for families coping with the triple whammy of NAPOLES-scale corruption, spiralling oil and LPG prices, and natural calamities are immense.

For industry, where power rates already constitute 45% to 55% of operational costs, particularly for Small and Medium Enterprises (SMEs) and BPOs, the rate increase will greatly affect their business viability. For the national economy, it compromises our regional competitiveness in the ASEAN and will be a disincentive to locators remaining and to the entry of foreign direct investments.

NAGKAISA pointed out that before a new tariff formula called Performance-Based Rate-making (PBR) was implemented by the Energy Regulatory Commission (ERC), MERALCO only made an annual net profit ranging from Php3 to Php6 billion. Under PBR in 2012, MERALCO declared a net income of Php16.25 billion. For 2013 MERALCO expects a consolidated net income of Php17 billion. NAGKAISA decried this overly-generous rate of return allowed by ERC which allowed MERALCO to earn in just one year what it used to take them 3 years to earn.

NAGKAISA also countered the MERALCO assertion that the maintenance work on Malampaya and resorting to the more expensive sources of WESM would result in a power rate increase of anywhere from Php2 per kWh to Php3.50 per kWh. NAGKAISA argues the following:

·       The scheduled maintenance of Malampaya and other plants should or was already imputed in the MERALCO rate. If MERALCO management did not prudently build this into their rate then the owners and management of MERALCO should bear the loss, not the consumers. The maintenance was scheduled way ahead of time and the cost consequences should already have been placed in the power supply agreements which MERALCO entered into.

·       If there is a forced outage, MERALCO and the power producers First Gas (Santa Rita), Therma Mobile (San Lorenzo) and SPPC (Ilijan) from which MERALCO buys its power are insured against possible spikes in costs. Why is MERALCO passing the burden to consumers when there is insurance for forced outages. Again, if MERALCO did not enter into any form of insurance or contract stipulation as to who will pay for the alternative supply in case of an outage (the alternative supply in this case is WESM), then MERALCO again has acted imprudently and should bear the cost of its imprudence.

·       MALAMPAYA is providing only a certain percentage of the power needs of MERALCO. Why are the entire costs of the downtime of Malampaya being borne by MERALCO consumers? How did it amount to a possible P3.50 per kWh increase?

·       Why has the ERC as regulator not stepped-in to validate the current claims of MERALCO when there are Commission on Audit findings of overcollection in 2004 and 2007 in the generation charges of MERALCO? Does ERC take the manifestations of MERALCO and the generation players as gospel truth?

·       Why has the DOE – or the Palace for that matter – not addressed the possibility of resorting to the MALAMPAYA FUND to reduce rates and to cushion the impact if indeed there is a problem not anticipated in the power supply contracts entered into between MERALCO and the generators?

THE TRUTH OF THE MATTER IS THAT CONSUMERS ARE BEING MADE TO ADVANCE WHAT THE MERALCO WILL BE COLLECTING FROM ITS INSURERS EVENTUALLY. When MERALCO entered into its supply contracts, it inputted and covered against all projected events and the cost consequences. These costs were built into the original power supply agreement and are therefore built into the rate. Further, MERALCO insured against all risks. MERALCO IS TRYING TO COLLECT FROM ITS CUSTOMERS BECAUSE IT THINKS IT CAN FOOL THEM. ENOUGH IS ENOUGH.

NAGKAISA has warned that the Wholesale Electricity Supply Market (WESM) does not and cannot work where you have insufficient supply. Given inadequate power supply, there will be no competition to drive down rates because it will be a sellers market. NAGKAISA, as a disinterested party, had already warned the government of this in its meetings with the economic cluster of the Cabinet in April and May 2013. NAGKAISA notes that notwithstanding the notable failure of WESM to bring down electricity prices in Luzon and Visayas, the DOE is currently piloting it in Mindanao where power supply is also inadequate.

NAGKAISA warns that the general public are beginning to realize that the Palace is a defender of MERALCO by its statements that there is “regularity” to the rate increase because it was “in accordance with the law.” NAGKAISA reminds the Palace that it is not for the NAGKAISA or the Palace nor the DOE to determine regularity. That is a function that clearly lies with the ERC. It is the ERC which must determine the course of action to be taken: to set the increase aside or to cushion its impact through rate increases staggered over a longer period of time.

NAGKAISA also reminds the Palace that perhaps something is deadly wrong with the EPIRA Law and that it is time to take a second hard look on how to ensure affordable power and supply that is reliable. We reiterate our call for the creation of a Presidential Task Force to bring down power rates. The Palace should talk to disinterested parties – not the power cartel.

Finally, NAGKAISA reminds the Palace that if in its fight against corruption, it brought down an Ombudsman and a Chief Justice, it can certainly do something about a certain ERC Chairperson named Ducut. Consumer and labor representation in the ERC is long overdue.

Groups say ADB harms workers in the Philippines

Press Release

May 4, 2012      

More than a hundred members of Partido ng Manggagawa (PM) and the Philippine Airlines Employees’ Association (PALEA) joined the newly-formed Nagkaisa labor coalition in a rally workers rally against the Asian Development Bank (ADB) annual meeting this morning as President Benigno Aquino II was due to give as speech.

“PNoy should not cover up the number of poor in the Philippines and the ADB should not wash its hands off the worsening poverty in the country. The ADB is an instrument of corporate greed that has aggravated the destitution of the 99% in Asia,” asserted Rene Magtubo, PM national chair. “ADB’s privatization intensifies poverty,” the workers chanted as they assembled in Harrison Plaza and then tried to make their way to the PICC, the venue of the meeting.

Magtubo explained that “The ADB meeting’s theme of inclusive growth is mere doubles-speak for its policies of privatization are tailor-fit to facilitate the fire sale of state-owned assets to giant multinationals and big capitalists. As a result of ADB-funded privatization, the costs of electricity and water in the Philippines have skyrocketed and as a result workers real wages have fallen despite yearly increase in nominal wages.”

The ADB pushed for the passage and provided loans for the implementation of the Electric Power Industry Reform Act (EPIRA). In 2000, Magtubo exposed a P500,000 payola for members of the House of Representatives to ensure the legislation of the controversial EPIRA.

The Nagkaisa-led rally of several hundred workers today follows the coalition’s historic 20,000-strong May Day mobilization which brought together the country’s main labor groups for the first time since the 1980’s. “The unity of labor last May 1 has made government listen to our concerns. The rally today is part of the next step—the struggle of workers to make government grant our demands,” Magtubo insisted. Among the list of demands that Nagkaisa submitted to Malacanang last Labor Day is the repeal of EPIRA and the lowering of power costs to consumers.

Magtubo expressed fear that the ADB also has a hand in the proposed privatization of the Agus-Polangi hydroelectric plant in Mindanao as a purported solution to the power crisis in the island. The proposal has been temporarily shelved due to widespread opposition in Mindanao.

He added that “The ADB’s shadow can also be seen in the scheme to sell off to private interests the provision of water services in municipalities. The ADB is Asia’s mini-IMF and mini-WB, and its public relations pitch is a result of the discrediting of the policies of privatization, deregulation and liberalization worldwide.”

Fil-Am groups call for boycott as PAL refuses to fly PALEA member and family

Representatives from Partido ng Manggagawa-USA and Filipino-American groups BANTAY Pilipinas-Los Angeles, Alliance Philippines and Echo Park Community Coalition called on the public especially Filipino-Americans to boycott Philippine Airlines (PAL) as the groups condemned the harassment tactics of the company against members of the Philippine Airlines Employees’ Association (PALEA). Last November 6 (US time), PAL refused to board a PALEA member and her family despite holding tickets for the Los Angeles-Manila flight because she was supposedly on “blacklist of PALEA members.”

“We condemn, in harshest terms, the violence and other harassment tactics employed by PAL against PALEA. Just last week, a gang of goons hired by PAL violently attacked the PALEA protest camp. Now, PAL issued a memo unjustly rescinding the earned travel benefits of these employees. Clearly all of these are meant to harass protesting workers. We call on the public to continue supporting the struggle of PALEA for decent jobs,” asserted Ian Seruelo, PM’s liaison officer in the US.

Members of the Fil-Am groups accompanied PALEA member Belle Savellano to the Los Angeles airport last Sunday as she and her family tried but was refused to be boarded on a flight back to the Philippines. “We need to go back to the Philippines since my husband has to go back to work on November 8 and my children also starts school on the same day. My family is suffering because of what PAL is doing,” she said of the urgency of her case.

Savellano, a PALEA member who worked for PAL for more than 28 years, is one of some 2,400 employees locked out after their protest last September 27. Savellano and family flew to the US on October 19 to visit their relatives in San Diego using her travel benefit that was approved before the lock out. On October 23, PAL issued a memo that renders Savellano’s return ticket useless.

“PAL’s action is shameless. Not only is it engaged in violating the rights of these workers to collective bargaining and decent employment but now it is even engaged in tactics intended to trample upon the freedom of these workers to be heard and their fundamental right to express their legitimate grievances. We appeal to everyone especially to our Filipino brothers and sisters to boycott PAL!” added Jerry Esguerra of BANTAY Pilipinas-LA.

“We are here today to support Belle from this obvious effort to bully her and her family. Allowing Belle and family to fly to the US last October 19 using her travel benefits and then disallowing them to use the same tickets to return to the Philippines is plain sabotage and harassment. In the very first place, PALEA employees are deserving of these benefit as they already worked for and earned these benefits,” said Art Garcia of Alliance Philippines.

The Fil-Am groups vowed to increase its efforts to campaign for the boycott of PAL until the flag carrier has heeded the demands of PALEA for the return to their regular jobs. They believe that the fight against corporate greed is exemplified in the struggle of PALEA. They jointly declared that “The oppression of PALEA is a reflection of the plight of ordinary workers all over the world. We have to fight back as we are all PALEAns!”