Nagkaisa dismayed over Duterte’s non-mention of security of tenure in SONA

Nagkaisa Labor Coalition expressed dismay over the SONA of President Rodrigo Roa Duterte for failing to address the issue of contractualization. "His silence is a great disappointment for workers as we were expecting him to announce the release of an executive order prohibiting all forms of contracualitzation," Nagkaisa said.

"For two hours, we were waiting for President Duterte to certify as urgent House Bills 4444 and 556 on Security of Tenure, but no announcement came," Nagkaisa added.

It could be recalled that during a dialogue with Nagkaisa and other labor groups on Labor Day in Davao City, President Duterte vowed to look into releasing an executive order. "That issuance would have superceded DOLE DO 174 released in late March that not only failed to prohibit all forms of contractualization, but abetted it," Nagkaisa said. He set a deadline of May 10 for labor groups to submit a draft EO.

"Nagkaisa, the National Anti-Poverty Commission, KMU and other labor groups submitted a common, unified draft two days before the deadline. Two and a half months later, we still haven't gotten any feedback," Nagkaisa said.

Nagkaisa also expressed deep concern over President Duterte's announcement of right-sizing in government.

"How can they talk about right-sizing when there are 595,000 job orders and contracts of service workers performing essential functions in government? They are the overworked and underpaid in government, many of whom are health workers and teachers," Nagkaisa said.

Nagkaisa is not pleased with the Tax Reform Package Bill in its present form, so it did not welcome President's Duterte's endorsement of it.

"Tax Reform Administration should be the first tax measure that Congress approves in order to improve tax collection and prosecute tax evaders. We also support the reduction of Personal Income Tax (PIT), but reject the lowering of Corporate Income Tax (CIT). It is the taxes on profits that should be increased," Nagkaisa added.

"Besides, adding on to the tax burden of workers at this point in time would be a double whammy as it seems our taxes will be used to fund the war in Mindanao," Nagkaisa said.

The President defended the extension of Martial Law for much of his SONA. NAGKAISA reiterates its opposition to the extension or expansion of Martial Law based on the following grounds:

1. It is not necessary;

2. It will be very expensive;

3. It is unproductive and is a disincentive to economic progress;

4. It weakens our democratic institutions; and

5. It strengthens the hands of the totalitarians.

"We believe that lawlessness in many forms can be addressed by a highly professional and effective military/police leadership. Ensuring professionalism and quality armed services is where Presidential powers are best exercised," Nagkaisa said.

Martial law extension or expansion will be a very expensive, unproductive experiment

The battle of Marawi has already entered its 9th week. And it won't be over until everything gets back to normal.  In fact, it is the normalization and rehabilitation part of this conflict which is a bigger war to win since failure in this aspect, we believe, will only create more conflict in this highly stratified region of the country.

We anticipate, though, that Marawi will ultimately fall back into the hands of our government forces.  War ultimately ends even without a victor. What it leaves, definitely, are the enormous humanitarian costs that will be very difficult to measure.  The Marawi war has already claimed at least 500 lives and created more than 200,000 bakwits.  Thousands of livelihoods were also lost as the city was razed into the ground by aerial bombings and fierce ground battles. Furthermore, the declaration of martial law has endangered civilians' free exercise of human rights in the entire island of Mindanao.

The Supreme Court has already ruled on the legality of the declaration of Martial Law in Mindanao but the 60-day duration of Proclamation 216 is set to expire on July 22, 2017.  Hence, the President, Congress and the entire nation now face a bothering question on whether the Martial Law in Mindanao should be extended or be expanded to cover the entire Philippines.  The House leadership, when asked, is even willing to extend and expand Martial Law for the entire term of the President or until 2022.

NAGKAISA labor coalition declares its opposition to the extension or expansion of Martial Law based on the following grounds: 

1.     It is not necessary;

2.     It will be very expensive;  

3.     It is unproductive and is a disincentive to economic progress;

4.     It weakens our democratic institutions; and

5.     It strengthens the hands of the totalitarians.

We find no compelling reason to warrant its extension or expansion at this point in time.  We believe that lawlessness in many forms can be addressed by a highly professional and effective military/police leadership. Ensuring professionalism and quality armed services is where Presidential powers are best exercised.  

Furthermore, extending this kind of war for a much longer time and carried out on a nationwide scale will become a very expensive experiment for a country whose development is highly dependent on loans and regressive taxes. It is therefore unacceptable to see the proposed expansion of VAT and imposition of excise taxes on oil, automobiles and sugar drinks funding not a social program but infrastructure for war. 

Lastly, it will be very unproductive for the President to spend his remaining years in office for this costly war.  War is both destruction and political distraction.  It neither creates nor equally redistributes social wealth that is now concentrated in the hands of oligarchs.

The President, in other words, has a better war to wage and win against contractualization, low wages, and high prices of basic goods and services.  If you want peace, Mr. President, build social justice and economic inclusion first. 

Dito ka namin gustong maramdaman.

Isang Bigong Taon: A failed one year for Digong – labor groups

File photo

Contractualization did not stop; wages remained low and regionalized; the unemployment and underemployment problems continue to weigh down on a large number of Filipino workers.  "In sum, it was "Isang B(D)igong Taon" on the labor front for President Duterte's first year in office," stated various labor groups in their one year assessment of the President's performance.

It can be recalled that the President made a campaign pledge that contractualization will stop the moment he becomes the President.  He also vowed to raise wages and abolish the system of provincial rates.

"We tried to rate the President's performance as objective as we can, but the outcomes for labor over his first 365 days have been generally wanting, have given us false expectations and given us many unfulfilled promises," said the workers groups in a joint statement distributed to media during a demonstration held at the Boy Scout Circle in Timog Quezon City, Friday.

The mass action was organized by the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro), Partido Manggagawa (PM), Federation of Free Workers (FFW), National Federation of Labor Unions (Naflu) and the Philippine Airlines Employees Association (Palea).  Members of the World March of Women and Ateneo University's Union of Students for the Advancement of Democracy (USAD) also joined the rally.

 

No end yet to endo

 

In a meeting on Labor Day, President Duterte asked labor groups to draft an Executive Order that would use prohibition of all forms of contractualization as a framework.  This was after the unanimous rejection of labor groups of Department Order 174 issued by Labor and Employment Sec. Silvestre Bello III sometime in March.  He also instructed the labor department to resolve with dispatch the years of dispute between PAL and PALEA on the issue of contractualization.

In response the labor groups submitted a unified draft together with the formal labor sector of the National Anti-Poverty Commission. But almost two months from its submission, the President has done no executive action to address the rampant contractualization.

 

"We have always advocated for a prohibition of all forms of contractualization and a stop to the abusive operations of manpower agencies and manpower cooperatives. The President himself at his assumption to power and in his first meeting with labor groups early this year openly expressed disgust over these as they 'abused workers,' using his words," said the groups.

 

According to labor groups, DO 174 continues to permit contractualization and allows manpower agencies and manpower cooperatives to take a cut from workers' salaries each payday.

There was also no certification issued by the President on pending anti-endo bills filed before the Congress. The PAL-PALEA dispute is not yet resolved.

 

The only token victory they got on this respect, the groups said, is the planned deputization of trade unionists as labor inspectors, the first batch of which are now undergoing training at the labor department.  

 

Freedom of Association is also one of the areas where the President has a failing mark from the groups as organizing remains extremely difficult particularly in Economic Zones as workers get harassed and get fired for trying to organize unions.

 

Wages, power, employment, OFW fees, new taxes

 

With the regional wage setting mechanism still in place, discrimination in terms of wages still persists across the country. The President said he was for a national minimum wage, but such policy pronouncement has not translated even to a working paper from DOLE that they can discuss with workers.

 

"In the meantime the real value of wages continues to drop, power rates and prices of basic goods and services continue to climb, making it more burdensome for the working class. Meanwhile, the collection of exorbitant placement and other fees for OFW have not been addressed sufficiently if at all," added the group.

In addition, the planned imposition of excise taxes on oil and the expansion of VAT coverage on goods and services under the Tax Reform for Acceleration and Inclusion (TRAIN), the group feared, will lead to further erosion of workers purchasing power especially those earning the minimum wage and below.

  

ILO Convention 151 ratification, the saving grace

The President, however, got a passing mark for being the first chief executive to endorse for Senate concurrence International Labor Convention 151 on Labor Relations in the Public Sector. The treaty, once ratified by the Senate, would guarantee the right to organize of public sector workers and allow them to bargain for better working conditions, among others.

Wrong war

 

Asked why the President failed to satisfy workers' clamor for change during the last 365 days, the labor groups said, "It is expected when a leader quickly descends into a wrong war that only resulted to thousands of unsolved killings.  While surveys have consistently showed that inflation, wages, and employment remain the top concerns of every Filipino." 

On Tax Reform for Acceleration and Inclusion (TRAIN) Package 1

Labor coalition welcomes lower tax on personal income but rejects regressive impact of excise taxes.

Workers have long been demanding for higher tax exemptions, hence, the approval by the House of Representatives of Package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) is a welcome relief.

Under the TRAIN, income lower than P250,000 per year will be tax free while higher income brackets, except for those who earn more than P5 million, will be charged a lowered tax rate of 25% from the current high of 32%.

This is surely a welcome development. But for the labor coalition Nagkaisa, the workers' gain in Personal Income Tax (PIT) will be offset in a regressive manner by the imposition of excise taxes on fuel products and the lifting of VAT exemptions in the sale of specific goods and services.

"Everyone knows, not just workers, that it will increase prices of goods and services that would affect mostly the poor and those at the lower income brackets," said Nagkaisa spokesman Renato Magtubo.

Magtubo said the TRAIN's objective of shifting the tax burden from the poor to the rich, "Seems to be scheming if not tricky as forgone revenue on the side of the government, which is equivalent to individual savings derived from lower PIT of specific income group, shall be recovered in a universal manner through excise taxes and expanded VAT."

The group explained further that the tax base can never be expanded through exemptions in PIT and corporate income, making indirect taxation through excise taxes and VAT expansion the main strategy in generating new and more revenue. "Otherwise, nobody is going to pay for the lost revenue," added Magtubo.

Under TRAIN's package 1, a P3.00-P6.00 excise taxes will be imposed per liter on fuel and P10 for locally produced sugary products while several VAT-exempt products and services will be lifted, including cooperative income exceeding the P3 million thresholds. Likewise, sale of real estate for socialized housing will now be covered by VAT.

According to the group, even the simulations made by staffs of the finance department showed the inevitable impact of increase in VAT payments by decile group – 43% for the richest 10% and 35% for the bottom 80%. Increase for the second richest 10% is 22%.

"An increase of 43 and 22 per cent respectively may mean nothing for the richest 20% who got significant savings from PIT exemptions. But a 35% increase is surely a burden for the bottom 80% who includes the majority in the formal and informal sector, employed and unemployed, of the working class. In the same manner everyone will be paying for the direct and indirect impact of excise taxes on fuel," explained Magtubo.

The labor leader added that those living in SPUG areas which rely on diesel as their single source of power will be absorbing a "minimal" impact, according to DOF. But that would mean additional P84 for those who consume 100 kWh per month and P106 for those who consume 300 kWh.

"These are the immediate impact that will hit everyone while the poor wait for the promised transfers contained in the proposed expenditure programs of the government," said Magtubo.

The group said it will intervene in the continuing deliberation of the tax package in Congress especially on the proposed lowering of income taxes for corporations from 30% to 25%.

"Our main question for this is why a tax rate on corporate income, which is supposed to be a tax on profit, is being lowered down to the same level of personal income which is a tax on labor? A uniform rate on business and personal income can never be considered progressive taxation," concludes Magtubo."




PRESS RELEASE
NAGKAISA
13 June 2017