Herrera no longer TUCP General Secretary;

Father of Labor Contractualization

 no longer TUCP General Secretary

 

Good riddance to the Father of Labor Contractualization- TUCP

“Good bye to the “Father of Contractualization” who betrayed the interest of Filipino workers and who was a traitor to the Trade Union Congress of the Philippines (TUCP)” said Rep. Raymond Democrito C. Mendoza, referring to former Senator and former TUCP General Secretary Ernesto” Boy” Herrera.

The Trade Union Congress Party (TUCP Party-List) dismissed the threats of Mr. Herrera as the “laughable, empty, ridiculous ruminations of a spent political force”. “Mr. Herrera should wake up to face the bleak existence of a politician without a constituency, without a base, and without a future. He is despised universally by Filipino workers as the father of job contractualization. TUCP was greatly damaged by being associated with him. TUCP is glad to end any with association with him now. Good riddance,” said Mendoza.

“Boy” attempted a power grab and failed. He is now misrepresenting himself as president of TUCP. Atty. Democrito Mendoza rescinded his letter of resignation after the majority of the TUCP General Council pleaded with Atty. Mendoza not to resign from TUCP. He remains and continues to be the President of TUCP,” explained Mendoza. “Herrera and his ilk like Alejandro Villaviza of Philippine Federation of Labor do not have any unions and members to speak of. They are spent-forces politically and organizationally who cannot command loyalty from the major labor federations and the unorganized as they have sold out the workers’ interest. They were the ones who practice self-dealing,” Mendoza stressed.

“Herrera mismanaged the TUCP as General Secretary and mishandled the funds intended for TUCP projects as was unearthed by external auditors hired by the TUCP. An ongoing external audit conducted has initially surfaced unliquidated advances of 2.5 million pesos to Herrera drawn from a TUCP account funded through a livelihood grant from the Department of Labor and Employment (DOLE). In the checks Herrera is both the payor and the payee. That is self-dealing of the worst sort and he should be ashamed to even invoke the name of Cory and Ninoy as who Herrera is now and what Herrera is now taints their very memory,” said Mendoza.

“Herrera and his cohorts will face multiple charges of financial wrongdoing after the external audit of TUCP funds is completed. He cannot escape from his criminal acts against the TUCP and the Filipino workers whom he sold to corporate greed by authoring labor contractualization in the country,” he said.

“We are happy to begin anew in TUCP without Herrera, Villaviza and other supposedly labor leaders who do not actually have followers. For the longest time, Herrera was a heavy liability to TUCP as he was tainted with a reputation of corruption and selling out the workers,” Mendoza said.

“His departure opens up a new chapter in history for the TUCP”, said Mendoza.

“For the record, Boy Herrera fielded his own children as party-list nominees under a different partylist and Citizens Drug Watch. All miserably lost because of association with Herrera. They are absolutely shameless in their disloyalty to the TUCP Party-List. Herrera and Villaviza are not the TUCP Party. The TUCP Party are the ordinary workers who are just trying to make a better life for their family through an honest living. TUCP has no place for crooks,” said Mendoza.

“The end of the Herrera period will now energize TUCP to put a stop to job contractualization, by passing stronger laws respecting security of tenure and making labor-only contracting a criminal offense. Herrera used the TUCP badly, by making it a camouflage for his anti-labor and anti-worker biases. He compromised TUCP advocacy if it ran counter to his self-interest. He has used TUCP also, apparently, to unduly enrich himself at the workers’ expense,” the labor solon finally added.

 Source: http://www.facebook.com/permalink.php?story_fbid=305479442836538&id=100001234550604

Committing ‘corporate suicide’ through outsourcing

January 19, 2012

The corporate world is replete with management “fad-ism”—MBO, Six Sigma, benchmarking and leveraging. The underlying clinical concept may be valid. But relevance and organization ‘‘fit” is imperative for these concepts to create a better organization. Managing the change and readily responding to needed adjustment in execution, given the corporate culture, are imperative. Organizations are advised not to fall, hook-line-and-sinker, into evolving corporate fads. Outsourcing is recent addition to corporate “fad-ism.’’

As the new chief finance officer, I knew the formidable, worldwide stature of my organization, a byword in its core business. However, its local operation was wanting. Senior management was segmented, the labor union was restless while the accounting system, about to be computerized, was a mess. The banks were demanding loan repayment, the suppliers were pressing collection even as collections from customers were not enough to bridge the cash flow gap. The receivables were substantial and the major stockholder’s weekly monitoring meetings were not yielding substantive progress.

Basic business model

Copiers and printers are sold outright or on financial lease. Servicing the machines is a major revenue source because said machines need replacement toners, drums and related “consumables.” Customers pay their financial and service charges based on the meter readings billed for the month. Collection followed the traditional First-in, First out (FIFO).

The customers treat these charges as office supplies, with a low priority payment. The collection of “aged” receivables became worse because of the customers’ tendency for statements of accounts and reconciliations.

The collection process undertook a paradigm shift, focusing on current billings to eliminate said statements and reconciliation. Collectors’ commissions were improved for current billings, allowing a higher intensity to collect readily collectible accounts. The collectors undertook “mapping” the customers’ payment process to identity key persons who can accelerate the flow of vouchers and checks.

The collectors comprised a critical “nerve” in servicing malfunctioning machines. Customers released payments on when their machines were made operational. The collectors would link up with the company’s highly competent technicians, a competitive advantage, to rush the needed repairs. The informal system of camaraderie, among the collectors and said technicians as labor union members, ensured amazing speed of execution.

Collections started skyrocketing even as the collectors comprising the bulk of the labor union became more inspired in earning commissions on accounts that were more readily collectible. With the improvement in performance and high commissions, union issues were no longer the priority even when morale was high.

The capital restructuring and the high level of collections provided the funds to rationalize the borrowings in favor of the more stable banks that extended prime interest rates.

Double suicide coming from ICU

At this stage, the company was akin to a heart bypass patient emerging from the intensive care unit, recovering from a near disaster, but still being nursed back to normalcy. Running the marathon would have been suicidal, and our company did exactly that when it decided to outsource both the collection and the service functions.

On the myopic premise that the collectors and technicians are “old,” are highly paid for being with the company for years, can be disruptive as labor union members and outsourced collection and maintenance services can be cheaper, the company retrenched in-house collectors and technicians in favor of out-sourced collectors and technicians.

Despite the use of automated meter readers, billing errors increased even for current charges, thereby slowing down collection. The external collectors had to re-build the intimate linkages made through process mapping of critical customers. The collectors’ role in signalling malfunctioning machines was gone, erasing the means for speedy technical services. Worse, the extensive coordination meetings needed for monitoring and control of collections took too much of senior management time.

At the end, the collections went down to levels worse than at the start of the corrective measures adopted.

Conclusion

Firms can avail of external service providers to perform operational processes more efficiently, faster and cheaper. The intrinsic value of outsourcing, after providing for reasonable adjustment, should be clear and achievable within a reasonable period after implementation.

In the real world, outsourcing allows the service provider to bring down costs because he hires workers at minimum pay and perpetuates that cost model by limiting employment to “contract” workers. The absence of legally regularized workers is anathema to society’s protection to labor. Lowly paid, recycled workers cannot be equated to institutional “expertise” that ensures customer satisfaction.

At the heart of the concern for outsourcing is the need for an organization to chart its business model, define its core business, assess the competencies to create and sustain competitive advantage and design the operational processes, including the availment of outsourced services, ensuring that critical functions are maintained in-house and without any extraneous, sporadic experimentation.

The author teaches Financial Management, Business Law, and Taxation at De La Salle University’s MBA Program. He is currently the executive law dean of the University of Perpetual Help, Las Piñas & Biñan and the former law dean and vice president for legal affairs of the University of Manila. He was also executive vice president and chief finance officer of Fuji Xerox Philippines Inc. –Joe-Santos Bisquera, Manila Standard Today

The views expressed above are the author’s and do not necessarily reflect the official position of De La Salle University, its faculty, and its administrators. Trade Union Congress of the Philippines - Home

Philippines ranks third in lowest salary hikes

January 19, 2012

THE PHILIPPINES is the third country with the lowest outlook for salary hikes this year, two foreign recruitment firms said.

The study conducted by India-based recruitment platforms MyHiringClub.com and NriJobPortal.com said the general salary level in the Philippines would increase by 4.21% in 2012, placing third in the list of countries with lowest outlook, next to Bulgaria (4.03%) and Vietnam (4.13%).

Worldwide average

The country’s salary increment outlook is also far below the worldwide average, placed at 10.19%, foreign news organization Emirates 24/7 reported, quoting the study.

The Philippines was followed by its neighboring countries Thailand (5.16%), Malaysia (5.67%) and Indonesia (5.91%). Others on the list with lowest salary increase outlooks were Portugal (6.19%), Austria (6.21%), Norway (6.37%) and Bahrain (6.86%).

Questionable basis

Sought for comment, Vicente R. Leogardo, Jr., director-general of the Employers Confederation of the Philippines, said an outlook for salary hikes was questionable.

“There are a lot of things that must be considered. Are we computing based on entry-level wages or not?” Mr. Leogardo said in a phone interview.

“As for the ranking, what is the basis of comparison?” he added.

Mr. Leogardo then pointed out that in terms of minimum wage, the Philippines pays higher compared to other countries in Southeast Asia.

“Our minimum wage rate is higher than that of China, Indonesia, Bangkok, Cambodia or Vietnam,” Mr. Leogardo told BusinessWorld.

According to the study, the ranking was based on comparisons of the total annual cash compensation and remuneration information provided by 5,326 companies in 31 different countries from Dec. 15 to 31, 2011.

Despite the euro zone crisis, European countries dominated the list of countries with the highest expected salary hike this year.

Denmark topped the list with a 16.49% rise in salary. It was followed by Ireland (16.27%), the United Kingdom (16.27%), Switzerland (15.76%), Belgium (15.57%) and Germany (15.45%).

Others on the list were Australia (14.79%), the United States (14.21%), Hong Kong (14.19%) and India (14.03%). — Kim Arveen M. Patria, Businessworld

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7 resolutions for retirees in 2012

MANILA, Philippines – Retirees may be past the days of resolving to work out more. Yet when it comes to money in particular, resolutions may be even more important for those living on fixed income. From financial nuts and bolts to more holistic aims, here’s a look at seven worthy resolutions for retirees to commit to in 2012:

1. Get disciplined about money matters.

Retirees should set up a formal budget and stick to it. Being thrifty without a plan only goes so far when unexpected expenses arise, especially at an age when health care costs can start to mount.

It’s also wise to record your financial goals and plans, such as how much money you expect to withdraw from savings every month.

“The more detailed the information about your spending requirements and investment goals, the greater your chances of success,” says Bob Stammers, director of investor education for the nonprofit CFA Institute for financial analysts.

2. Attack your debt.

Along with putting on pounds, new retirees are prone to running up debt with their newfound freedom. Paying off credit card debt should be a top priority.

After the card debt is zeroed out, use only one card and pay off the balance monthly. If an emergency expense leads to a balance, don’t let it linger or it will erode retirement savings.

If your savings are languishing in a money market account or certificate of deposit earning practically nothing, you can put a chunk of it to greater use by paying off a credit card with an interest rate of 15 or 20 percent. Having savings yields at rock-bottom lows presents a rare opportunity to instantly improve your finances.

“There may never be a better time than now to clear up all of your credit card debt,” says Michael Kresh, a certified financial planner in Islandia, N.Y.

3. Invest in dividend-paying stocks.

It’s tough for retirees to get meaningful income on their money from the traditional sources. The best-paying money market and savings accounts yield just one percent, five-year CDs no better than 1.95 percent, according to Bankrate.com. For a bit more risk in the short term, blue chip stocks that pay dividends offer a combination of reliable income and good odds for share price appreciation over the long haul.

Income investors have few alternatives to dividend stocks in this environment, says Howard Silverblatt, senior analyst for Standard & Poor’s.

4. Get your estate plan in order.

Make sure your estate plan and financial documents are updated. Tax laws change and documents may be out of date. Beneficiaries may need to be revised.

Set up a review with an attorney and investment adviser to make sure all of your plans are current. A basic estate plan includes a will, living will, durable power of attorney and health-care proxy or living will.

5. Be more generous.

Resolve to be more charitable, giving to worthy causes for others as well as your loved ones. It’s rewarding and makes tax and financial sense too. Helping a younger family member can also set an admirable precedent that reinforces the importance of charitable giving.

You may want to consider a charitable gift annuity, in which you donate to a large charity and receive regular lifetime payments in return.

6. Check into long-term care insurance possibilities.

Consider getting a long-term care policy. It may already be too expensive if you have health issues or are well into retirement. But note that roughly a fifth of those who sign up for coverage do so at age 65 or older, according to the American Association for Long-Term Care Insurance.

About 70 percent of people over 65 will require long-term care services at some point. And neither private health insurance nor Medicare pay for the majority of the services people need – help with personal care such as dressing or using the bathroom independently.

7. Stretch your body and mind.

Choose daily pursuits that keep you physically, mentally and socially engaged. There’s abundant evidence that continued physical activity helps people live longer, feel better, avoid depression and keep their mental skills sharp.

“Functional disabilities shouldn’t keep you from exercising,” says Dr. Amy Ehrlich, a geriatrician with Montefiore Medical Center in the Bronx, N.Y,

She puts frail elderly patients on a walking program. If they can’t walk, she puts them on a swimming program. And if they can’t swim, she has them take a water aerobics class.

Studies show that people benefit from efforts to stay cognitively sharp — from doing a daily crossword to playing games to reading. Maintaining social ties also is critical. Older people who volunteer in schools, for example, feel happier, more useful and more satisfied with their lives. –AP (The Philippine Star)

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http://www.tucp.org.ph/news/index.php/2012/01/house-body-to-look-into-taxes-levied-on-sss-gsis-contributions/

MANILA, Philippines – The House committee on ways and means will look into another controversial issuance of the Bureau of Internal Revenue (BIR), which imposes tax on contributions to state pension and insurance institutions like the Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Health Insurance Corp. (PhilHealth) and the Pag-Ibig Fund.

The panel arrived at the decision during a hearing approving a motion by Valenzuela City Rep. Magtanggol Gunigundo to conduct an inquiry into Revenue Memorandum Circular 53-2011 issued by BIR Commissioner Kim Jacinto-Henares that taxes optional contributions to pension and insurance firms.

Gunigundo had earlier criticized the directive as anti-poor and in violation of Section 32 of the Tax Code, which exempts employees’ contributions from taxation, be it voluntary or mandatory.

Cagayan de Oro City Rep. Rufus Rodriguez also filed House Resolution 1973 directing the committee to conduct an inquiry, in aid of legislation, into RMC 53-2011 which would make contributions to pension, housing and health funds amounting to more than that required by law subject to income and withholding tax.

Gunigundo said those who would be heavily affected would be the overseas Filipino workers and the self and part-time employees, including the domestic helpers.

Contrary to the BIR’s claim, Rodriguez said these contributions cannot be considered investments hence, should not be taxed.

“These contributions are for social security, not investments, contrary to what they’re saying,” he said.

Earlier, Henares withdrew Memorandum Circular 57-2011 Issued in November that compels individual taxpayers to submit supplemental information detailing their financial transactions including bank deposits, stock trading and property sales.

Lawmakers said the circular was unconstitutional and violates privacy and the Bank Secrecy Law. –Paolo Romero (The Philippine Star)

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Click’ on DOLE for services

January 9, 2012

Labor Secretary Rosalinda Baldoz on Sunday said that almost all available data and performance reports of the Department of Labor and Employment (DOLE) will be posted online this year to enhance government transparency, reduce red tape and boost anticorruption efforts.

“One of our thrusts this year is to develop new information systems…to ensure the fast, extensive and integrated delivery and monitoring of all services being provided by all DOLE-attached agencies, bureaus and services, including regional and field offices,” Baldoz said in a statement.

The Professional Regulation Commission had uploaded a number of its transactions online in 2011. This year, it will make available online verification of academic records, professional identification cards and eligibilities. Applications for board examinations will also be available online this year.

These systems are currently in various stages of implementation, the secretary said.

POEA records

Also, Baldoz said, the Philippine Overseas Employment Administration, under newly appointed Administrator Hans Leo J. Cacdac, is set to computerize its central records.

The National Wages and Productivity Commission would also post wages and productivity issuances online. It would have referencing and browsing capabilities to enable lawyers and researchers, among other users, to update their own databases.

At the DOLE main office, Baldoz said six new information systems will go online this year: foreign labor operations, enhanced labor standards enforcement monitoring, registration of establishments, case docket and monitoring, and human resource information.

Labor attachés

The Foreign Labor Operations Information System would monitor what labor attachés are doing, including work and financial plans and actual accomplishments on a quarterly, semi-annual and annual basis.

The Enhanced Labor Standards Enforcement Monitoring System would facilitate monitoring compliance of establishments with general labor standards, occupational safety and health standards. It would also serve as a database for inspected establishments, monitored cases and corrections of violations. Performance reports of regional offices will also be available online. –Jerome Aning, Philippine Daily Inquire

Trade Union Congress of the Philippines http://www.tucp.org.ph/news/index.php/2012/01/click%E2%80%99-on-dole-for-services/

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The Philippine Star Job Fair, January 24-25, 2012, Megatrade Hall 1, SM Megamall

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SC junks Picop appeal on illegal dismissal case

The Supreme Court (SC) turned down an appeal filed by paper manufacturer PICOP Resources Inc. (PRI) in a labor case involving employees who were fired after they changed allegiances in the labor group which would represent them in the collective bargaining agreement (CBA) with the company.
In its decision, the high court’s Third Division through Associate Justice Jose Mendoza turned down the petition of PRI and its senior vice-president and resident manager Wilfredo Fuentes.
“Their freedom to choose who should be their bargaining representative is of paramount importance.” the SC said referring to the workers who were dismissed.
“Due process must be observed in dismissing an employee, because it affects not only his position but also his means of livelihood. Employers should, therefore, respect and protect the rights of their employees, which include the right to labor.” the tribunal explained as it ordered backwages as well as lawyers fees.
Other members of the Third Division are Associate Justice Diosdado M. Peralta,Roberto A. Abad, Ma. Lourdes P. A. Sereno and Estela M. Perlas-Bernabe.
The employees, Ricardo Dequilla, Cesar Atienza and Aniceto Orbeta were regular rank-and-file employees of Picop Resources, Inc. (PICOP) and members of the NAMAPRI-SPFL, a duly registered labor organization and existing bargaining agent of the PICOP rank-and-file employees.
PICOP and NAMAPRI-SPFL had a collective bargaining agreement (CBA) which would expire on May 22, 2000.
On May 16, 2000, the late Atty. Proculo P. Fuentes, Jr. , then National President of the Southern Philippines Federation of Labor(SPFL), advised the PICOP management to terminate about 800 employees due to acts of disloyalty, specifically, for allegedly campaigning, supporting and signing a petition for the certification of a rival union, the Federation of Free Workers Union (FFW) before the 60-day “freedom period” and during the effectivity of the CBA.
Such acts of disloyalty he claimed maybe construed to be a valid cause for termination under the terms and conditions of the CBA. Based on the CBA, the freedom period would start on March 22, 2000.
Acting on the advice of Atty. Fuentes, Atty. Romero Boniel , Manager of the PICOP Legal and Labor Relations Department, issued a memorandum directing the employees concerned to explain within seventy-two (72) hours why their employment should not be terminated due to alleged acts of disloyalty. Upon receiving their explanation letters, Atty. Boniel endorsed the same to Atty. Fuentes who then requested the termination of 46 employees found guilty of acts of disloyalty.
On October 16, 2000, PICOP served a notice of termination due to acts of disloyalty to 31 of the 46 employees.The respondents were among the 31 employees dismissed from employment by PICOP on November 16, 2000.
Enraged at what management did to them, private respondents filed a complaint before the NLRC Regional Arbitration Branch No. XIII, Butuan City, for Unfair Labor Practice and Illegal Dismissal with money claims, damages and attorney’s fees.
On June 9, 2001, the Labor Arbiter rendered a decision declaring as illegal the termination of the private respondents.
The arbiter was however reversed by the National Labor Relations Commission (NLRC) which in turn was reversed by the Court of Appeals prompting Picop to bring the case to the high court.
“The fact that there already exists a bargaining representative in the unit concerned is of no moment as long as the petition for certification election was filed within the freedom period. What is imperative is that by such a petition for certification election the employees are given the opportunity to make known of who shall have the right to represent them thereafter. Not only some, but all of them should have the right to do so. What is equally important is that everyone be given a democratic space in the bargaining unit concerned.” the SC said in upholding the workers’ position.### Benjamin B. Pulta, Daily Tribune

http://www.tucp.org.ph/news/index.php/2011/12/sc-junks-picop-appeal-on-illegal-dismissal-case/