Government or employers asked to shoulder hike in SSS employee share

Amid the criticism over the scheduled 1% hike in Social Security System (SSS) contributions starting this year, the labor group Partido Manggagawa (PM) called on either the government or employers to shoulder the increase in employee share for the current year.

 

“The increase in employee share for SSS contributions will result in lower take-home pay at a time when workers face extreme economic difficulties due to the cost-of-living crisis. In contrast, the government and capitalists have the capacity to pay. The least they could do is to lighten the burden for workers in the new year,” stated Rene Magtubo, PM national chair and a Marikina City councilor.

 

Several groups and individuals have called for the suspension of the scheduled SSS contribution adjustment in view of the economic burden on workers and pending reforms in SSS, such as the failure to collect unpaid remittances from employers.

 

It was reported yesterday that the Commission on Audit (COA) cited SSS for its inability to gather some PhP 89 billion in collectibles from almost half a million employers. The COA called this “weak performance by the SSS in collecting premiums.”

 

Magtubo said that “These employers who deduct social security contributions but do not remit them to the SSS are misbehaving and criminal, or pasaway. Simply, it is wage theft. It is time that SSS wage a war on pasaway employers.”

 

He added that “Capitalists are more than solvent as they have increased their share in the fruits of production in the last 15 years of robust economic growth. Real wages have been stagnant in that period of 50% labor productivity rise. This implies an expansion of capital share, or profit in other words.”

 

Magtubo concluded that “Alternatively, the government can also subsidize the employee share in the meantime. A large share of government revenues come from workers’ withholding taxes anyway. Formal workers disproportionately bear the burden of taxation in the country. Workers’ payroll taxes are automatically deducted while corporate taxes are dependent on the declaration of capitalists. This is a double standard.”

January 6, 2025

Nagkaisa statement on sovereign wealth fund

Wealth fund should come from wealth tax: 

Pera naming mga manggagawa yan, bakit kayo ang nag-uusap?

 

Sovereign Wealth Funds (SWFs) are essentially profit-driven state-owned investment funds. Some of our neighboring countries who want to make the most out of their surplus—usually foreign exchange generated from exports—established state-owned entities to invest their excess capital on various instruments. Singapore, Indonesia, Malaysia, among others, created their own SWFs.

 

With the potential of SWFs to grow, they can distort incentives in an economy where they are invested enough to favor specific economic activities and enterprises. Although SWFs usually invest in foreign instruments, there is nothing stopping them from pouring investments on profitable economic activities and enterprises at home, thus, making SWFs a strategic tool for industrial policy. But this is not necessarily the motivation for the proposed Maharlika Wealth Fund.

 

Now, should workers support the government’s attempt to create an SWF?

 

That public pension funds are identified as sources of financing for the SWF already earns the proposed fund minus points. Public pension funds are fragile. There is a reason both SSS and GSIS are very careful in their investment decisions and that is because that is how they secure future generations of Filipinos. GSIS should know the risks involved especially in foreign money market, after all, their exposure to the 2007-2008 Global Financial Crisis may have costed the pension fund some of its resources.

 

Can politicians pushing for SWF guarantee the security of workers’ retirement funds while exposing it to potential losses from profit-driven, speculative investment decisions? House representatives who back the SWF argue that pension funds are guaranteed by government funds anyway, and that the SWF will come with sufficient safeguard measures.

 

But NAGKAISA has a better idea to secure workers’ pensions, and that is by not exposing them to unnecessary risks. If SWF should be pursued, it must be funded by true surpluses generated by the economy—the proceeds from wealth tax!

 

In 2020, NAGKAISA floated the idea of taxing the unused assets of the wealthiest in the country. The tax revenue from the wealth tax could have funded pandemic recovery measures of the government. Now that the Philippines is gradually recovering, potential revenues from wealth tax can now be used to fund ideas such as SWF without risking workers’ funds.

 

And what is this obsession about the term “Maharlika”? If the proponents want to connect SWF to a concept from Philippine history, then they should have kept in mind that the Philippine government does not have a good record in managing public funds. That fact is also historical. Unless the proponents have concrete plans about protecting the SWF from turning into a Maharlika Wealth Scam, House Bill 6398 cannot just be allowed to pass. In any case, workers remain critical of this proposal especially when their pensions are on the line.

NAGKAISA Labor Coalition

03 December 2022

Labor group alarmed at worsening SSS scandal, asks contribution hike be shelved

The labor group Partido Manggagawa (PM) today expressed alarm at new allegations of bribery hurled at top SSS officials. In the light of these, the group reiterated its demand for a stop to the planned hike next year in SSS contributions.

“We view with increasing concern the worsening allegations of bribery and profiteering by top SSS officialls as the financial safety of the workers social security fund is at stake. We ask that labor groups be invited to the congressional inquiry to be called on the matter so that we can air our views and proposals,” declared Rene Magtubo.

PM had earlier demanded that the proposed rise in SSS contributions be shelved pending the investigation of the scandal and internal reforms by the institution. The administration of President Rodrigo Duterte is pushing for annual hikes starting next year up to 2020 that will raise contributions from 11% to 17%.

The House Committee on Banks and Financial Intermediaries is scheduled to conduct an inquiry. PM is also asking the Senate to initiate its own investigation.

Magtubo explained that “Instead of the 32 million private sector workers forking out more for social security deductions, we suggest cutting perks and privileges of SSS officials and increasing the fund coverage by running after employers who do not remit contributions. All these must form part of internal reforms that should include firewalls against corruption and illegal transactions.”

“We come across numerous abusive employers who do not remit contributions withheld from the wages of their employees. Non-remittance of social security contributions is a frequent complaint of workers. Not enough enforcement and remediation is being done by the SSS on this grave issue,” he insisted.

November 8, 2017

Fact Sheet: DirectAccess Corporation (DAC) in Cebu

Direct Access workers assembly at Cebu City public library

Rampant Labor Standard Violations

1.      DirectAccess Corporation – a BPO (Business Process Outsourcing) or in layman’s term “Call Center” which is a corporation owned by several Filipinos through with the main support of the foreign company in Salt Lake City, Utah namely “Revocalize”. The way DAC operates is considered as a telemarketing company because it solicits interest of customers from different states in America with the product/services we have. There are non-voice accounts and voice accounts. Either voice or non-voice agents, both are required to provide leads daily to its client and every lead DAC will produce it is always convertible into specific amount of dollars. Roland del Rosario is one of the owners of DirectAccess Corporation. While Jeffry Newman is the COO/Chief Operating Officer of DirectAccess and the bosses of Mr. Newman are Ben George-President and Jody Rokstool-CEO of Revocalize in Utah.

  

·        Employees were not informed ahead of time that the company will undergo temporary closure last July 30, 2012.

·        Employees did not received the ff:

A.     Total overtime pay including RDOT or rest day OT from June20-July5, 2012 cutoff which was scheduled to be released on the 15^th of July. But then Mr. Newman appealed and announced that instead it will be paid out on the 23^rd of July or within that week but still unpaid.

B.     Basic pay, allowance and cash incentives as well as the overtime pays covering the 16-day working period (July 6-20) and from July 21-30,2012.

·        Government benefits deducted from the salary that were not completely remitted which includes the following:
a. tax remittances
b. Social Security System (SSS)
c. PAG IBIG
d. PhilHealth

·        Leave credits convertible to cash

·        Separation pay

·   Money claims total PhP 6.4 million for 638 employees left jobless

Heads and their Designations:

Ben George-President, Revocalize

Jody Rokstool-CE0, Revocalize

Jeffry Newman- COO/chief operating officer

Roland del Rosario- IT Manager

Atty Beryl Dyesabelle- company lawyer

From Zylun Staffing to DirectAccess -transfer- September 1, 2011.

Mr. Kit Quiseo- HR Head of Zylun

Started cutting down benefits July 15, 2012-July31,2012.

Why shutdown: company declared temporary closure due to bankrupty.

Why not losing: DAC has multiple clients and campaign/accounts that were running.

PM calls on Congress to regulate contractualization schemes

Press Release
December 8, 2010

In the wake of the overwhelming vote for a strike by members of the Philippine Airlines Employees’ Association (PALEA), the militant Partido ng Manggagawa (PM) called on the House Labor Committee (LaborCom) to legislate restrictions on various contractualization schemes that have become widespread business practice. “Congress should read the writing on the wall. Contractualization is worsening the conditions of workers and is provoking labor unrest. It is high time to strictly regulate this pernicious practice that is subverting Constitutionally-guaranteed rights to security of tenure and freedom of self-organization,” stated Renato Magtubo, PM chair.

PALEA members voted decisively in favor of a strike in balloting that started yesterday morning and ended at midnight. The LaborCom held a hearing this afternoon at the Batasang Pambansa on the various pending bills on security of tenure that was attended by labor leaders including officers of PALEA and PM. Later at 6:30 pm hundreds of PM and PALEA members and supporters trooped to the UP Diliman Film Center for the film screening of the indie movie “Endo” about the life of a temporary worker.

PM is advocating that contractual work only be allowed for seasonal work and project-based employment. Magtubo explained that “Contractual employment must be prohibited if the work is already done by regular workers, or in the words of the Labor Code, if the work is necessary and desirable to the business of the company. At present, more and more contractual workers are displacing regular employees and doing the same work but for cheaper wages, less benefits, worse conditions and without the protection of a union. The Philippines is becoming a nation of contractuals.”

“We further call on PNoy to make a policy statement by declaring the security of tenure bills as priority legislation and make a model out of the PAL case by striking a settlement that meets the demands of PALEA for job security,” Magtubo asserted.

“The real aim of outsourcing and subcontracting is not efficiency and productivity. Its hidden agenda is to lessen labor costs and compete on the basis of cheap labor. The ulterior motive of contractualization is go around the protection for workers presently provided in the Labor Code such as the minimum wage, social security, employee benefits, separation pay and the freedom to have a voice and representation in the workplace through a union,” Magtubo argued.

The labor group also opposed the lobby of employers groups calling for more liberal policy on outsourcing and less restriction on termination of workers. Magtubo claimed that “Liberalization of outsourcing, subcontracting and termination will lead to the further oppression and destitution of workers. It will accelerate the race to the bottom in wages and working conditions that contractualization is fostering. Just as an example employers are now turning to manpower agencies masquerading as labor cooperatives in order to pay below minimum wages through the fiction of dividends.”

“Congress is mandated to enact laws that operationalize the mandate of the Constitution. The elegant phrases of the Constitution providing for protection to workers cannot be dead letters through inaction by solons. We ask them to expedite the passage of the pending bills,” Magtubo insisted.

Labor party-list study show cost of living in Calabarzon is P800 a day

Press Release
May 3, 2010

The labor party-list Partido ng Manggagawa (PM) released its own study of the cost of living for a family of six in Calabarzon as of April this year that reveal it has already reached P808 a day. "This survey shows that the gap between the P320 minimum wage in the most urbanized part of Calabarzon and the present cost of living is a yawning P488 or 153% of the ordinary wage. Even if both parents work—which is the buy one, take one policy of the government—then their combined income will not be enough to feed the entire family," stated Raquel Monzon, a trade union leader of PM in Rosario, Cavite.

The group’s computation is an underestimation since it did not provide for savings and social security which in the government’s basket of goods and services constitutes 10% of the cost of living. Furthermore, PM's study did not include items such as leisure and recreation, and the family budget for health excluded medical expenses. Monzon said that "If we include such items, and we must in a more comprehensive survey, then the cost of living may reach P900 per day or more."

In reaction to Malacañang’s order to all regional wage boards to deliberate on a wage hike, PM doubts that the Region IV-A wage board will grant a substantial salary increase. “Since the Calabarzon wage board was established in 1989, no basic wage increase ever granted was above P20, which today is not even enough to buy an additional kilo of the cheapest commercial rice. The wage boards must be abolished for being inutile. Its wage orders are always delayed, stingy and benefits merely a small section of workers because it is not across-the-board and riddled with exemptions, deferments and creditability clauses," declared Monzon.

The group is advocating for the establishment of a National Wage Commission. “The National Wage Commission is different in that its mandate is to fix wages based on the single criterion of cost of living. And despite the huge gap between the present minimum wage and the current cost of living, the National Wage Commission can equalize the two by a host of mechanisms among which are direct wage increases, tax exemptions, price discounts at social security subsidies for workers,” Monzon explained.

She added that “The formation of a National Wage Commission should be on the agenda of the next Congress and must be certified as urgent by the new President, if his administration will bring real change to workers lives.”

Monzon also argued that "Since we should not impose the burden of household chores and child rearing to the female parent, then the basket of goods should provide for a house-help. That is not anymore a luxury especially in the light of the insistence of the state that both parents must work instead of having just a single breadwinner."

Workers protest SSS fund diversion for GMA stimulus plan

Press Release
February 1, 2010

Members of the party-list group Partido ng Manggagawa (PM) picketed the main office of the Social Security System in protest at the plan of SSS President Romulo Neri to channel P12.5 billion of SSS funds to the economic stimulus package of the Arroyo administration.

Chanting “Neri, Gloria: Hands off our funds!” and “Additional workers benefits not more GMA projects is the right stimulus plan!” some 50 workers from PM gathered at the East Avenue office of SSS around 10 a.m.

Renato Magtubo, PM chairperson, argued that “It is not just illegal but illegitimate for Neri to divert billions in SSS funds to infrastructure projects that will benefit capitalists first and workers last, if at all. A pro-labor stimulus plan must put money in workers hands through additional SSS benefits for workers, including an unemployment subsidy for displaced SSS members.”

The group also revealed that they are studying the option of filing a class suit of SSS members against Neri for the alleged fund diversion. The workers also voiced support for Senate Resolution 850 directing the committee on government corporations and public enterprises to investigate the plan to channel the P12.5 billion for the government’s "economic resiliency plan."

Among the protesters were workers who are SSS members with complaints about their benefits. Among them is Tomas Piroy, a resident of Tanza, Cavite but who works as a security guard in Paranaque. Piroy recently secured a loan from SSS but objects to the P200 service charge automatically deducted from his loan. “The SSS is our money yet we are charged for accessing our benefits,” Piroy stated.

Dennis Sequena, leader of PM in Cavite raised the prospect that due to the lack of transparency and corruption in the administration, “Workers funds might be used for the electoral campaign of the regime-backed candidates if not of GMA herself in Pampanga. Neri is apparently confused that as administrator of the SSS money his real boss is the workers who have put their hard-earned money in the insurance fund not GMA who wants to dip her hands in the piggy bank of the working class.”

He added that “If instead of funding infrastructure projects, the P12.5 billion in SSS funds is used as unemployment subsidy for workers laid off due to the economic crisis, then some 200,000 will benefit. This will be enough to cover the 40,000 laid off, according to the conservative figures of the DOLE, since the start of the global recession and the tens of thousands more to be displaced in the coming months and years as the economic crisis shows no sign of abating.” PM is pushing for an unemployment subsidy at the minimum wage rate of P10,000 for up to six months for workers who are recently displaced.

Militant labor calls for Neri’s resignation as SSS head

Press Release
March 8, 2009

The militant Partido ng Manggagawa (PM) called for the resignation of SSS Administrator Romulo Neri in the wake of his declaration that the social security fund will not release loans to laid-off workers. “Neri does not deserve the post of custodian of the workers’ retirement and social security fund. He is not simply stingy but is insensitive to the workers,” insisted Renato Magtubo, chairperson of PM.

“If Neri cannot tell the people the truth about the NBN ZTE deal, then how can we trust him to reveal the real condition of SSS funds? In the interest of transparency and accountability, the SSS Board must reveal to the workers the state of the workers fund. So workers can validate Neri’s declaration that the 10 per cent ceiling allowed by law has already been reached,” Magtubo argued. He also asked that the SSS open its books for an audit by representatives of organized labor other than those already sitting in its board.

He added that “Workers have sacrificed part of their daily pay for social security contributions in preparation for a rainy day. Now is that rainy day. In fact this is bound to be a rainy season. To deny workers this social protection and safety net in their hour of need is cruel and coldhearted.”

PM is also asking Congress to study an amendment to the SSS law in order to lift the 10 per cent ceiling and the necessity of a government infusion of money to the workers’ fund so it can provide benefits for the estimated hundreds of thousands of workers that will be displaced.

“This 10 per cent limit should not be a concrete ceiling but a movable elevator that can be adjusted as the conditions necessitate. In this historic crisis that the world is going through, arbitrary limits such as the 10 per cent ceiling should not be hard-and-fast rules that cannot be changed for workers lives are at stake,” Magtubo elaborated.