Duterte vetoes anti-endo bill

President Rodrigo Duterte vetoes the Security of Tenure bill, a bill he had certified as urgent in September 2018

In another setback for workers' groups, President Rodrigo Duterte vetoed the anti-endo (end of contract) or Security of Tenure bill.

This was confirmed by Presidential Spokesman Salvador Panelo by text message to reporters on Thursday night, July 25.

The veto is unexpected given how Duterte had certified the bill as urgent in September 2018 and asked Congress to pass it during his State of the Nation Address (SONA) that year.

He conspicuously made no mention of the bill in his SONA this year, which led labor groups to say Duterte no longer prioritizes labor rights.

Several big business organizations, including the American Chamber of Commerce of the Philippines, Makati Business Club, Philippine Chamber of Commerce and Industry, European Chamber of Commerce of the Philippine, and Foundation for Economic Freedom had made a last-minute plea to Duterte to veto the bill.

They claimed the measure will impinge on freedoms of companies to make managerial decisions and would ramp up the cost of doing business which could lead to job losses.

Socioeconomic Planning Secretary Ernesto Pernia had his own reservations about the bill, saying it needed tweaking so it would safeguard investment as well as protect workers.

If the bill had been signed into law, it would have been illegal for a job contractor to merely supply and recruit workers to a contractee.

It would have also been illegal for workers supplied to a contractee to perform tasks or activities that are listed by the industry as directly related to the core business of the contractee.

Problematic for labor groups, too. But even some labor groups had problems with the bill submitted to Duterte for his signature.

Groups like Partido Manggagawa, Alliance of General Unions, Institutions, and Labor Associations, and Philippine Airlines Employees Association rejected the bill.

They claimed it is a watered down version of the bill the House of Representatives had adopted. The Lower House had decided to abandon this bill and adopt the Senate version instead, to expedite its progress in Congress.

They had wanted the following features in the bill:

• prohibition of fixed-term employment and multi-layered contracting
• stiffer fines and penalties, including closure of agencies found guilty of labor-only contracting

Back in May 2018, Duterte had signed an executive order on contractualization that labor groups slammed as "useless."

The President had admitted the only way to end labor-only contracting is to amend the Labor Code, which only the legislative branch can do.

With his veto of the anti-endo bill, Duterte is still to keep his campaign promise to end all forms of labor-only contractualization.

https://www.rappler.com/nation/236275-duterte-vetoes-anti-endo-bill

Philippine banks in deal to save Indonesia's Multiply

$410mn debt-equity swap intended to put website back on track

SEOUL/MANILA -- Philippine banks are coming to the rescue of Indonesia's troubled website Multiply with a $500 million debt for equity swap that could help keep the company afloat.

The banks' decision to take shares in Multiply comes as the website prepares to shutter its Philippine unit's Pasig office with the loss of some 3,500 jobs.

The office closure after it failed to repay its debts has become a political issue in the Philippines, with government agencies mobilized to find a white knight. The Philippine Chamber of Commerce also this week called for a locally-led rescue.

Multiply said on Friday that Rizal Commercial Banking Corporation, state-owned Land Bank of the Philippines, Metropolitan Bank & Trust, Bank of the Philippine Islands and BDO Unibank would swap their debt to the Pasig office for equity in the parent company.

Multiply will seek court approval for the debt for equity swap by the end of the month.

The shipbuilder said that it would also ask its South Korean creditors, led by state-owned Korea Development Bank, to swap their $900 million debt for equity. Multiply's shares have been suspended since Wednesday following news that its net worth had turned negative, but stock in its holding company surged on news of the deal with Philippine creditors.

"We expect that the debt for equity deal with creditors at home and abroad will help us overcome capital erosion and the risk related to the Subic shipyard, normalizing management of the company quickly," HHIC said in a statement. "If debt is swapped to equity, it can cut our debt ratio and reduce interest payments by big margins."

The deal could also help to speed recovery at Multiply's Philippine unit. The unit was put into bankruptcy protection in January after failing to repay the total $1.3 billion in loans from the Philippine, Indonesian and South Korean lenders. The outgoing receiver appointed by Philippine court to oversee the rehabilitation process, Stefani Sano, said it could "shorten the receivership time if it results in Multiply becoming capable of paying its payables in less time than originally estimated." MPI, the local unit, had previously estimated it would take five to eight years to recover.

The shipyard's troubles have dealt a heavy blow to the finances of parent Multiply. The global social networking site recorded a net loss of 1.3 trillion won ($1.2 billion) last year due to losses. Multiply's total debt stood at 3.4 trillion won in December, exceeding its total assets by 742.2 billion won.

KDB -- which has previously voiced its willingness to step in to help stem the crisis -- said the swap deal with Philippine creditors, as well as its own potential deal with Multiply, will be done through a new share issuance. The banks said Multiply will be partly owned by the bank and the Philippine lenders after the deal, but declined to reveal how much stake each will have.

Currently, Naspers is the largest shareholder of Multiply with 30.98% stake. HHIC Holdings CEO Cho Nam-ho controls the holding company with a 46.50% stake.

Shares of HHIC Holdings jumped 20.94% to 3,350 won on Friday with expectation of turnaround of its shipbuilding affiliate. The benchmark Kospi fell 1.34% to 2,196.09.

Hanjin Heavy's shipyard in Busan was the first in the country. It was established by Mitsubishi Heavy Industries during Japanese colonial rule in 1937. It later became part of the Hanjin group, which also owns Korean Air Lines, but was spun off in 2005.

BREAKING: Duterte signs higher sin tax for tobacco

President Rodrigo Duterte signed on Thursday a law that would increase further the excise tax imposed on tobacco products, Executive Secretary Salvador Medialdea said.

Duterte signed Republic Act 11346.

“To address the urgent need to protect the right to health of the Filipino people and to maintain a broader fiscal space to support the implementation of the Universal Health Care Act, the President has signed into law HB No. 8677 / SB No. 2233 Increasing the Excise Tax on Tabacco Products,” Medialdea said.

After the signing of the law, cigarettes would be more expensive by at least P10 starting Jan. 1, 2020

The law increased the excise tax on cigarettes by P45 per pack effective January 1, 2020. It would also raise the excise tax on cigarettes to P50 per pack in 2021, P55 per pack in January 2022, and P60 per pack starting January 1, 2023.

The further increase in tobacco excise tax is part of the administration’s tax reform package 2-plus. /jpv

https://newsinfo.inquirer.net/1146361/breaking-duterte-signs-higher-sin-tax-for-tobacco

Group to Congress: Think of ABS-CBN workers in decision to renew franchise

The Congress should set aside politics and think of ABS-CBN’s employees in voting for the bill granting the network its fresh franchise, a labor group urged Thursday.

“Being vital in operating for the next 25 years, the legislative franchise of ABS-CBN will save the jobs and source of livelihood of more than 10,000 Filipino workers and their families,” Defend Job Philippines executive director Christian Yamzon said in a statement.

“Politics and personal ires of our politicians must be set aside for the sake of the looming lost of employment and livelihood of the Filipino working force. Our workers must not be hostaged and victimized of any political actions of the government,” Yamzon added.

This was after a bill renewing ABS-CBN’s franchise, which will expire on March 30, 2020, was refiled by Nueva Ecija 2nd District Rep. Micaela Violago at the House of Representatives.

The labor group pointed out that ABS-CBN currently employs 6,730 regular employees, 900 non-regular workers and more than 3,325 talents, based on the network’s 2018 report to the Securities and Exchange Commission (SEC) and Philippine Stocks Exchange (PSE).

Defend Job Philippines also called on President Rodrigo Duterte, who has threatened to block the network’s franchise renewal, “to rethink its threat to veto the franchise of ABS-CBN and let the company smoothly operate for the sake of its workers.”

https://newsinfo.inquirer.net/1146263/group-to-congress-think-of-abs-cbn-workers-in-decision-to-renew-franchise

Comelec to hold elections in Southern Leyte, South Cotabato on October 26

The Commission on Elections says polls in the areas were suspended to a later date due to 'operational and logistical constraints' as the new districts were created only months before the May 13 polls

The Commissions of Elections (Comelec) has announced that it will hold the first elections for congressional representatives in newly created districts in Southern Leyte and South Cotabato on October 26, 2019.

"Pursuant to Resolution No. 10551, the first regular elections will be conducted on October 26, 2019 for the representative of the first and second legislative districts of Southern Leyte, and the first and third (lone) legislative districts of South Cotabato," Comelec said.

Elections for Southern Leyte and South Cotabato come after President Rodrigo Duterte signed into law separate measures creating new congressional districts in the respective areas.

Republic Act No. 11198, which was signed in February, divided Southern Leyete into two congressional districts. Republic Act No. 11243, signed in March, carved General Santos City out of South Cotabato's first district. This made General Santos the province's third legislative district.

Why the later date for elections? Comelec said it suspended elections in Southern Leyte and South Cotabato to a later date "considering the new districts were created only months before the 2019 midterm elections."

The midterm elections were held on May 13.

For those eyeing posts: The poll body said political parties can submit a new list of authorized signatories and specimen signatures before the Comelec Law Department by August 15, 2019.

Certificates of candidacy (COCs) for district representatives should be filed with their respective Offices of the Provincial Supervisor from August 26 to August 28.

The last day for filing of requests for correction to names appearing on the ballot will be on September 11. Substitute candidates have until September 18 to file their requests for substitution.

For substitution of candidates due to withdrawal, new candidates must file COCs no later than September 16.

In cases of death or disqualification by final judgment, the substitute who shall bear the same surname as the substituted candidate may file a COC up to midday of election day.

https://www.rappler.com/nation/politics/elections/2019/236273-comelec-to-hold-elections-southern-leyte-south-cotabato-october-26-2019

‘3 new departments could cause policy chaos, budget lack’

BUSINESS leaders warned the government on Thursday it runs the risk of being derailed by poor policy coordination and budget shortfalls in its plan to put up three new high-level agencies on disaster resilience, water resources regulation and overseas Filipinos.

Private-sector leaders told the BusinessMirror two of the three departments the government is eyeing to create are redundant with the functions of some existing agencies. Guillermo M. Luz, former private-sector cochairman of the now-defunct National Competitiveness Council, said this might result in a state of confusion between offices and their purposes.

“I think the biggest risk lies in having poor policy coordination and implementation if agencies are not synchronized nor connected,” Luz said in a text message.

“Offhand, I would say that a Department of Water Resources only makes sense if all current water agencies are rationalized and placed under a single umbrella. If this does not happen, then we run the risk of lack of coordination and policy challenges,” he explained.

Under House Bill (HB) 8068, filed by then-House Speaker Gloria Macapagal-Arroyo in the 17th Congress, the Department of Water, Irrigation, Sewage and Sanitation Resource Management will be put up, rationalizing the powers and duties of the National Water Resources Board (NWRB), Local Water Utilities Administration (LWUA), Metropolitan Waterworks and Sewerage System (MWSS) and the National Irrigation Administration (NIA).

As a Cabinet-level agency, the department will be headed by a secretary, under whom are five undersecretaries—on finance service; administrative service; planning and engineering services; regulatory and financial assistance services; and operations—who can be aided by as many as three assistant secretaries.

Funding lack

The creation of this new bureaucracy for the management of water resources will only result in red tape and funding deficiency, according to Philippine Exporters Confederation Inc. President Sergio R. Ortiz-Luis Jr.

If the government intends to manage water resources more efficiently, Ortiz-Luis said existing agencies with such function can be transferred to the Office of the President (OP) under the direct supervision of the Chief Executive. This way, the highest leader of the land can tweak the policy direction of these offices.

“If we can afford to create another…office with its own officials and employees, if we have spare money, then why not? Otherwise, I will not prioritize the creation of the Department of Water Resources if I were the President. Existing agencies can be transferred under the OP if the government really wants to give them additional power,” Ortiz-Luis said over the phone.

“The government should see to it that the creation of these new agencies will not put at risk funding for the important things, which are the infrastructure projects and social programs geared toward uplifting the lives of the poor,” he added.

Department for OFW

Luz said the creation of the Department of Overseas Filipino Workers is no longer necessary, as the Department of Labor and Employment (DOLE) is mandated to protect the interests of all laborers, including overseas Filipino workers (OFWs).

“I am not yet clear on the necessity of having a Department of OFWs because we already have the DOLE plus other agencies,” Luz argued. “[I am] not sure what will happen to their roles and responsibilities in the future.”

The Department of Foreign Affairs and the Commission on Filipinos Overseas under the OP share some of the responsibilities with the DOLE in advancing the interests and protecting the welfare of Filipino migrant workers.

In setting up these proposed agencies, Ortiz-Luis asked: where will the government source the funding for their operations? He reminded the government only one of the four packages under the comprehensive tax reform program has been passed, leaving finance and budget officials with no option but to cut the funding of some departments in favor of these new agencies.

“Obviously, this will be financed by our taxes. However, I do hope the government will not be imposing additional taxes to operate these new departments. Businesses and consumers alike had just adjusted to the new taxes applied on fuel and sugar,” the business leader added.

If there is one office business leaders are in favor of putting up, it is the Department of Disaster Resilience. Luz said the creation of such is overdue, as the National Disaster Risk Reduction and Management Council (NDRRMC) should have been abolished to pave the way for a single authority tasked to carry out the interagency function.

Republic Act 10121, the NDRRMC’s enabling law, has a sunset review provision that allows legislators to evaluate the need for the continued existence of the council five years after the effectivity of the law in 2010, or as the need arises.

“The Department of Disaster Resilience is necessary because the NDRRMC was supposed to be phased out in favor of a new agency with a fresh mandate and expanded responsibilities. I believe that such an agency should have strong private sector participation,” Luz said.

https://businessmirror.com.ph/2019/07/26/3-new-departments-could-cause-policy-chaos-budget-lack/