Economic managers moonlighting as employers’ spokespersons—labor group

 

The labor group Partido Manggagawa (PM) slammed National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan and Finance Secretary Benjamin Diokno for “moonlighting as employers’ spokespersons” with their doomsday predictions about a P150 legislated wage hike is approved by Congress.

 

“Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. also warned of job losses, price hikes and economic slowdown if wages are raised. Government’s economic managers and employers’ representatives are both painting the same apocalyptic scenarios without any substantiation,” stated Rene Magtubo, PM spokesperson and Marikina City councilor.

 

He added that “Our own economic modelling shows that salary increases will have an insignificant impact on both employment and inflation contrary to Balisacan and Diokno’s claims. Empirical studies for other countries also show similar results.”

 

PM cited that Indonesia, which is similarly situated as the Philippines as a middle-income country with a large informal economy, raised wages by some 50% in 2011 and 2012 without negative effects on prices, employment and GDP. In comparison, a P150 wage hike redounds to just a 25% boost in the minimum wage in Metro Manila.

 

“Raising wages improves living standards and has a secondary effect of increasing worker motivation and morale and thus labor productivity. Further, salary hikes in the formal sector also increases incomes in the informal economy through the so-called lighthouse effect. That is, the rise in formal sector wages signal to the rest of economic actors what a socially acceptable income should be. Finally, Balisacan’s own NEDA admits that GDP growth in the Philippines is primarily driven by household consumption and thus increasing the purchasing power of workers will have a positive effect on the economy,” Magtubo explained.

 

He furthered that “Balisacan and Diokno conveniently forget that government’s own data confirm that from 2001 to 2016, real wages were stagnant but labor productivity grew by 50% while GDP doubled. In other words, the economic pie expanded but the slice given to workers remained the same and employers monopolized all the growth. Why are they silent on this?”

 

PM contended that the P150 legislated wage hike seeks mainly to recover the lost value of workers’ wages and not yet to partake of the increased labor productivity. “Even a P150 will not raise workers’ wages to the level of a living wage, which today stands at around P1,300 per day and increasing due to unabated inflation,” Magtubo insisted.

Press Release

August 17, 2023

Adidas and Sports City should be up front about the reason for the closure of Mactan Apparel

 Workers rejoinder to the response of brand and supplier   

We call on the global brand Adidas and one of its tier-1 suppliers, Sports City, to be up front to the workers about the reason for the closure of Mactan Apparel and its two printing facilities. At the very least, transparency is the foundation for corporate social responsibility.

 

We demand honesty from Adidas and Sports City since it is as clear as day that they contradict each other in their separate replies to inquiries from the Business and Human Rights Resource Center. Adidas claims that the closures are due to the decision of Sports City to consolidate its supply chain in the Philippines. Meanwhile Sports City alleges that the shutdown was prompted by the supply chain consolidation of its buyer. In sum, nobody wants to accept responsibility for a decision that led to the loss of livelihood of some 4,000 workers. So, what is the real score?

 

Corporate social responsibility dictates that brands and suppliers must be transparent to workers who have been loyally making their garments and producing profit for the companies.

Labor group asks garment exporters group to name brand leaving the Philippines

Retrenched Mactan Apparel worker. Photo from PIO Lapu-Lapu City

 

The labor group Partido Manggagawa (PM) called on the Confederation of Wearables Exporters of the Philippines (CONWEP) to name the global brand which it said pulled its orders from the Philippines. A few days ago, CONWEP Executive Director Maritess Jocson-Agoncillo was quoted in a news story that the unnamed global brand is shifting all its orders to Vietnam and Cambodia.

 

“We ask CONWEP to name the brand so that the 4,000 workers who have lost their jobs can demand an explanation from this multinational company. Corporate social responsibility dictates that global brands be transparent to their stakeholders, especially workers who have been loyally making garments for multinational companies,” stated Dennis Derige, spokesperson of the PM Cebu chapter.

 

Last month, the PESO of Lapu-Lapu confirmed that more than 4,000 workers were retrenched by the factories Mactan Apparel and First Flory. Both are locators in the Mactan Economic Zone (MEZ) in Lapu-Lapu City, Metro City. Mactan Apparel is part of the Sports City conglomerate, the biggest employer in MEZ. Another 4,000 workers were laid off across the different Sports City garment factories at the height of the pandemic in September 2022 and then 4,000 more in September 2020.

 

“While we welcome the assistance of the Lapu-Lapu PESO and the Department of Labor and Employment (DOLE) so that the laid-off workers can engage in livelihood projects, we cannot hide the bitter truth. Shifting from formal regular work to vulnerable, insecure informal work is a huge step backwards. The normative goal is transitioning from informal to formal work. The decent work diagnostics of the DOLE and the International Labour Organization clearly states that for growth to be inclusive, the country needs to increase formal regular employment,” explained Derige.

 

PM has been pushing for a public employment program to generate jobs and a more robust unemployment insurance provided by the Social Security System. “For workers of Mactan Apparel and First Glory, guaranteed public employment is a better option in the short-term to self-employment as home-based workers, which is the livelihood program of DOLE. In the long-term, it is imperative that we have industrial policy that promotes the domestic economy instead of dependence on foreign investments which is footloose and unregulated. As CONWEP themselves admit, global brands can shift their orders on a whim thereby upending the jobs of thousands of workers overnight,” Derige insisted.

Press Release

August 7, 2023

 

“Logo lang ang nagbago sa SONA ni BBM”--labor group

  

The militant labor group Partido Manggagawa (PM) asserted that only the logo has changed as President Bong Bong Marcos is set to deliver his second State of the Nation today. “Walang bago sa Pilipinas. Logo lang ang nagbago. All the social problems—poverty, inequality, low wages, high prices, unemployment and insecure jobs—remain unresolved and without any clear solutions under this administration,” stated Rene Magtubo, PM national chair and Marikina city councilor.

 

Hundreds of PM members will join other workers organizations under the Nagkaisa labor coalition in assembling around 9:00 am today at Philcoa. By 11:00 am, the group will merge with more labor groups and other civil society organizations along Commonwealth Avenue and in front of the Commission on Human Rights. They will march to Tandang Sora where the People’s SONA will have a program from 11:30 am to 1:30 pm.

 

In Cebu City, PM along with groups SENTRO and Akbayan will assemble in Plaza Independencia at 8:00 am today. Then they will march onto the Cebu City Freedom Park and finally merge with other organizations for the main program in Metro Colon. In Iloilo, PM is joining other workers organizations for the counter-SONA rally today under the coalition United Labor.

 

Magtubo cited the loss of more than 4,000 jobs as two big garment factories are shutting down in the Mactan Export Processing Zone as an example of the failures of the Marcos Jr. administration, along with the price of rice that remains double the promised P20 per kilo. He insisted that “Dahil walang trabahong regular and walang murang bigas, bigo ang Pilipinas sa pamumuno ni BBM.”

July 24, 2023

The poorest who need housing the most are left out in the 4PH Program

Photo by Rappler

 

Urban poor groups, on the eve of President Marcos Jr.’s second State of the Nation Address (SONA), criticized the administration’s social housing program for its being “overly dependent” on private developers and “downright discriminatory” against the poorest of the poor.

 

Declared as the administration’s flagship program, the Pambansang Pabahay Para sa Pilipino (4PH) aims to produce one million “affordable” housing each year to address the cumulative housing backlog of some 6.8 million.

 

But leaders of urban poor organizations in a joint statement declared: “The program is neither affordable nor equitable for the poorest among the homeless Filipinos. Pagkatapos ng anim na taon, maaring nagkabahay ang mga naka-aangat pero ang mahihirap ay hindi,” stated the groups.

 

The urban poor network explained that under this private-led housing development program, only the lower to middle-income families can avail of the ₱1.1 - ₱1.5 million housing loan from Pag-ibig as the poorest of poor, estimated to be 1.7 million of the 6 million beneficiaries, cannot afford a monthly amortization of at least ₱4,000.

 

Housing loans under 4PH is significantly higher than the current loanable amount of up to ₱750,000 for socialized housing under Pag-ibig, with a monthly amortization of ₱2,445/month available for minimum wage earners and low-income families.

 

But informal settler families (ISFs) live under vulnerable conditions of unemployment and underemployment as most of them work in the informal economy with irregular income, the groups said.

 

The ₱4,000 estimated monthly amortization the groups said was based on the 1% interest rate which is the only cost that will be assumed by the government. Pag-ibig imposes a 3% interest rate for socialized housing loans but under the 4PH, only 1% shall be paid by the applicant. The rest of the costs in building the units will be assumed by private developers but which shall also be charged to household beneficiaries through Pag-ibig.

 

But because the proposed housing design is high rise, the urban poor leaders said additional costs for the maintenance and operations of said buildings like elevators and other amenities shall be borne collectively and may incur additional monthly dues of ₱2,000 per household. This would mean a family’s total monthly expenditure for housing at ₱6,000.

 

“Records would show, however, that even for existing NHA projects, only 22% of informal settlers are able to meet the monthly amortization of ₱300. ₱6,000 is twenty times higher than the current NHA cost, making the 4PH an impossible dream house for the poorest of the poor. Hindi pa nagsisimula ang proyekto ay disqualified na ang mahihirap,” said the group.

 

Alternatives

 

Citing a dire need to address the burgeoning housing crisis, the urban poor leaders said they are willing to work with the government with an alternative mechanism that they would like to propose.

 

These include a major proposal for the government to make land acquisition and site development for socialized housing a grant to drive down the cost further and make the program more affordable for the poorest of the poor.

 

The groups also want the framework of “People’s Plan” adopted by the government through the enactment of the People’s Plan bill filed in Congress to ensure that ISFs are not merely treated as “market” in the socialized housing industry but as major partner and participants for realizing the social objective of eliminating homelessness in the country.

 

It is in the People’s Plan, they said, that a flexible housing program can be formulated democratically which may include, among others, lower cost and mixed-use development of the housing estates.

 

Lastly, the groups are also opposed to extending the NHA Charter because of the agency’s failure to solve the housing problem for decades and the recent creation of DHSUD. As an alternative, they propose that the housing projects under the NHA be distributed free for the beneficiaries in the same way lands were condoned for agrarian reform beneficiaries (ARBs) in the rural areas.

 

“Kung ang ARBs sa kanayunan ay nabigyan ng Pangulo ng condonation at emancipation sa kanilang mga utang, maari din itong gawin para sa mga ISFs ng kalunsuran,” the group concluded.

23 July 2023

Urban Poor Leaders Network

For more info you may contact:

 Ver Estorosas

Alyansa ng Maralitang Pilipino

09423690337

 

Rodel Rubias

HOA Resettlement Alliance

0928 729 6269

 

Jonathan Chua

Laban ng Maralitang Sektor

09610230159

 

Nestor Yaranon

Kilos Maralita

09239770681

 

Vicente Barlos

President

Alliance Peoples Organization in  Lupang Arenda (APOLA)

09437091266

 

Jonjon Elago

President, ULAP-Confed

09218202998