A4 Tuesday, April 30, 2019 • Editor: Vittorio V. Vitug
Economy BusinessMirror
DOLE sees long-term jobs demand amid ‘BBB’ boom By Samuel P. Medenilla @sam_medenilla
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HE Department of Labor and Employment (DOLE) on Monday assured that the Duterte administration’s “Build, Build, Build” (BBB) program would generate employment opportunities even beyond the construction sector. In a interview, Labor Undersecretary Ciriaco A. Lagunzad III said this is expected as the BBB program also raises demand for construction-related materials. “If you look at the backward linkages [of the BBB], you will see business like hardware selling nails, cement and steel are also booming,” Lagunzad said. This was supported by the fullyear 2018 Labor Force Survey (LFS) analysis of the Philippine Statistics Authority (PSA), which showed significant growth in the construction and manufacturing sector. “The share of both construction and manufacturing subsectors showed an increase from 8.5 percent in October 2017 to 9.5 percent in October 2018, and 8.7 percent in October 2017 to 8.9 percent in October 2018, respectively,” PSA said. This is equivalent to 328,000 jobs in the construction subsector and 144,000 in the manu-
facturing subsector.
Service-sector potential
LAGUNZAD said the labor impact of the BBB program will also extend to the service sector, especially once its big-ticket infrastructure projects are completed like highways and trains. “The demand [for service workers] will come in once maintenance for the highway and train start,” Lagunzad explained. The labor official issued the clarification after IBON Foundation Inc. criticized the projected labor gains of the BBB to be limited to construction jobs. The independent think tank lamented how the said jobs in the said subsector are not only temporary, but also low paying. Rather than the government spending on construction, IBON said the government should directly spend the amount in the manufacturing and agriculture sector. As of 2016, PSA’s occupational wage survey (OWS) showed the average median wage of construction workers was pegged at P11,612 a month, or about P387 per day. The OWS is conducted every two years. The result of its 2018 edition is yet to be released by PSA.
Overall effect
LAGUNZAD, however, said the pay
of construction workers may already have already improved amid the increasing demand for their services. He noted shortage of construction workers is now more prominent, especially in Metro Manila. “They [construction industry representatives] are telling me they have to go as far as Bicol to get workers since their workers are employed in the Build, Build, Build,” Lagunzad said. In terms of employment generation, Lagunzad said the BBB is already doing its intended effect. Citing the road map of the Department of Trade and Industry (DTI), DOLE’s Bureau of Local Employment Director Dominque R. Tutay affirmed Lagunzad’s observation of the job generation impact of BBB. “The road map targets 3 million additional jobs until 2030 from the current stock of 4 million,” Tutay told the BusinessMirror in an interview. “Based from my computation between now until 2030, that is an annual requirement of 250,000 construction workers,” she added. Measuring the overall impact of BBB, Lagunzad said, involves considering all of these factors. Our judgment [of the BBB] should not be based on a snapshot [observation] but understanding its effects to the entire economy,” Lagunzad said.
DTI vows price cap if cement price hits P240/bag
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HE Department of Trade and Industry (DTI) will impose a price cap on cement should retail prices hit P240 per bag in light of the
delay in Tariff Commission hearings. Trade Secretary Ramon M. Lopez said he will enforce a suggested retail price (SRP) of P225 per bag on
cement if proven the prevailing price of the commodity is now at P240 per bag. He vowed to look into the situation and verify the figures, as well as assess how the delay in Tariff Commission hearings could affect cement prices. “Say, P240 per bag of cement is prevalent, then we come in [and reduce] it back to P220 per bag to P225 per bag,” Lopez said in an interview with reporters on Monday. The Tariff Commission is investigating the merits of imposing a definitive safeguard measure against imported cement as endorsed by the DTI in January. Further, it is hearing the arguments of cement manufacturers and importers on whether there is a need to protect the local industry.
However, the tariff body last week decided to postpone public hearings from May 6 to 10, asking for more time to complete its plant visits and data verification. Laban Konsyumer Inc. President Victorio Mario A. Dimagiba said the delay in investigation will lead to the extended implementation of the safeguard duty on cement. Without an SRP in place, he argued, cement producers can take advantage of the situation and jack up prices at their will. “Laban Konsyumer feared then [the safeguard duty] could be used to increase prices, coupled with [the] DTI’s inaction on their own order to set SRP,” Dimagiba told the BusinessMirror. Elijah Felice E. Rosales
www.businessmirror.com.ph
Whistle-blower protection and its impact on business By Henry J. Schumacher
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HE European Parliament finally voted on April 16, 2019, to approve groundbreaking legislation that will harmonize and strengthen whistle-blower protections across the European Unions (EU) member-states. Given the fact that business in the Philippines has requested both Houses of Congress to pass whistle-blower protection bills into law also—so far without success, it is essential for both lawmakers and business executives to be aware of the implications. The implications of this new law in the EU are significant, as whistle-blowers will enjoy a wide range of legal protections that should make it dramatically easier for employees to speak up when they see misconduct inside an organization. Moreover, all employers with at least 50 employees will be required to run internal reporting channels of a high standard. In light of this development, businesses are well-advised to consider the strong benefits of thinking about how they can ensure their corporate culture is firmly centered around strong morals and ethical practices. Indeed, if companies fail to drive the message of ethics to the core of their organization, they can no longer expect employees to keep quiet in the face of harsh consequences, as is commonly the case now. The whistle-blower directive is a major moment for businesses in the EU (and hopefully soon in the Philippines) and a great opportunity to ramp up the focus on ethics in all organization as the best defense against misconduct and its many consequences.
What does the whistleblower protection mean for businesses?
IN practical terms, all employers in the public and private sectors with at least 50 employees will be required to set up internal reporting channels. At a minimum, the directive requires that internal reporting channels contain the following elements: 1. Internal channels and procedures for reporting which: Are secure and guarantee confidentiality of the reporting party and any other mentioned
third party; Allow for acknowledgment of receipt within seven days; Have clear and easily accessible information on reporting to external authorities; and Allow for reporting in writing and/or orally through telephone lines or other voice messaging services. 2. The ability to receive reports both from the organization’s employees and other persons in contact with the entity in a work-related context. Such persons could be third parties, suppliers, partners, etc. 3. Recordkeeping in line with confidentiality requirements for an appropriate time frame, either as a stored audio recording or in the form of detailed minutes signed by the reporting person. The introduction of the directive is a major opportunity for companies to push for a strong ethical culture that will prevent misconduct, but also encourages employees to use internal channels in order to build trust. Whistle-blowers are free to elect to bypass internal reporting channels. What does this mean for businesses? Crucially, whistle-blowers will now feel emboldened to bypass internal reporting channels if they do not feel confident that their notifications will be taken seriously, handled confidentially, or that they will face retaliation of any sort as a result of their decision to raise their concerns internally. T he introduction of legal protection for whistle-blowers bypassing internal reporting channels is clearly a strong argument for a focus on developing your internal ethics culture. However, t h is development does not stand alone; other quest ionable pract ices t hat stifle reporting of misconduct have come under fire recently. Consider mandator y arbitration clauses: a widely used means of alternative dispute resolution. It is common in the
corporate world to include mandatory arbitration clauses in employment contracts. This means the employee’s claims regarding harassment, discrimination, and other related topics may not be fought in court but have to be settled in private arbitration. Another practice that is subject to heavy criticism at the moment is the use of nondisclosure agreements (NDAs) struck between employers and whistleblowers that attempt to raise concerns internally. A lot of criticism has been directed at the treatment of Howard Wilkinson, the former head of Danske Bank ’s Baltics trading unit, who blew the whistle on what is suspected money-laundering said amount to over €200 billion. The EU whistle-blower directive contains a provision requiring states to ensure that the rights and remedies provided for in the directive may not be waived or limited by any type of agreement, including a predispute arbitration agreement. This provision should in effect, depending on implementation, ensure that NDAs such as the one Wilkinson had to sign will no longer be upheld in court.
The bottom line
FOLLOWING the adoption of the whistle-blower directive on April 16, 2019, EU member-states will now have two years until the directive will enter into force in April 2021. Organizations with more than 50 but less than 250 employees will have an additional two years to make sure they are compliant. The whistle-blower directive is a groundbreaking piece of legislation. Whistle-blowers throughout the European Union are set to enjoy wide-ranging protections from retaliation when they report their concerns, regardless of whether the concerns were raised internally or not. The only answer to this development for business is to double down on their efforts to implement a strong ethics and compliance culture. Indeed, the best defense against misconduct is to ensure that employees feel supported to voice their concerns internally without fear of retaliation. If business fails to ensure employees feel confident their concerns will be handled carefully and diligently, they may just elect to approach the authorities directly, which means business misses out on a chance to handle the concerns internally, as much as possible. Feedback is more than welcome; email me at Schumacher@eitsc.com.
Same set of unmet workers’ demands on Labor Day dialogue–TUCP, KMU
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T is still the same set of demands from labor groups even after two years of consecutive Labor Day dialogues with President Duterte. Trade Union Congress of the Philippines (TUCP) Spokesman A lan Tanjusay said the President still has yet to fulfill many of his Labor Day promises to labor groups. T he said commitments include the implementation of the International Labor Organization (ILO) Convention 151 or the Right of Public Sector Workers to Unionize, or form Unions. Despite already being ratified by the Senate in 2017, the convention still needs a corresponding law to be fully implemented. Tanjusay also cited the passage of the much-awaited Security of Tenure (SOT) bill, which seeks to further restrict the practice
of contractualization. While Duterte has already included this in his list of priority bills, the legislation remains pending in the Senate. T he K i lusang Mayo Uno (KMU), for its part, also raised the same concern on the apparent lack of government guarantee in the SOT of workers, as well as restoring the national minimumwage rate. “He does not even pretend anymore to want to fulfill the promise he made to workers,” KMU stated. The KMU, together with other labor groups, has been demanding for the abolition of the minimum-wage rates set by the regional wage board for supposedly not being responsive to the needs of workers. The labor group is pushing for the legislation of P750 national minimum wage.
The issues raised by TUCP and KMU were among those raised by labor leaders in their Labor Day dialogue with Duterte in the last two years. As of Sunday, the TUCP and the Federation of Free Workers (FFW) have yet to receive any invitation from the Department of Labor and Employment (DOLE) for another similar dialogue with President Duterte on the next Labor Day on Wednesday. Leaders from TUCP, FFW and other affiliate groups of the labor coalition Nagkaisa are the groups usually invited by the DOLE for the event. The BusinessMirror tried to get the reaction of the DOLE i f t h e r e i s a l r e a d y a no t h e r planned Labor Day dialogue this year, but it has yet to reply on the quer y as of press time. Samuel P. Medenilla