Revoke Meralco Franchise, Pull the Plug on EPIRA

On Valentine’s Day, the Power to the People Coalition tell Meralco, “It’s Over.”









Meralco has failed the Filipino people. They promised cheap, widespread access to electricity, yet the only thing they mustered thus far are scandalous electricity rates that they expected ordinary Filipinos to meekly comply with.

Meralco has consistently regarded ordinary Filipino consumers with the heartless, corporate greed for profit. The most recent spike in power rates proved this. Meralco made the absurd argument that it is not responsible for the record-high electricity rates simply because it had no power over the forced outages their power suppliers implemented. It became even more ridiculous when Meralco played the victim by claiming that it had no choice but to source power from the Wholesale Electricity Spot Market (WESM) for the power deficit.

Nothing could be farther away from the truth. Documents submitted to the Supreme Court showed that it was Meralco’s order to power supplier Therma Mobile, which it controls, to bid at the maximum allowable price of P62.00 per kilowatt hour no less than 25 times during that period that was responsible for the skyhigh clearing price at the WESM. In short, Meralco gamed the market to benefit itself and other power producers. By doing so it defrauded its consumers whom it is obligated to supply electricity at the least possible cost.

We belie Meralco’s claims that it was powerless over the simultaneous forced outages of its power producers. The shutdown of Malampaya for maintenance, and the shutdown of two other power plants for the same reason, were all scheduled. Meralco saw it coming, and they took the most convenient and profitable course of action. They chose to sit back, game the power industry, and make consumers pay for it all.

That Meralco systematically abused the Filipino people is but a symptom of the failure of the Electric Power Industry Reform Act (EPIRA). We must not forget that EPIRA is the main source of the problem; it put the whole industry under the gang rule of private power – from generation to transmission sectors, all the way to the cooperatives in the distribution sector. Privatization of the power industry has resulted in monopoly control, inefficient power delivery and sky-high prices, in direct contradiction to the promises EPIRA made to attain efficiency and break the monopoly in the electricity industry, and lower power prices. That Meralco’s profits have risen over 100 per cent since EPIRA went into effect in 2001, and that Meralco has the power to game the market at the expense of the people is a monstrous example of EPIRA’s failure.

13 years of Meralco’s greed and EPIRA’s exploitation of power consumers have pushed the people to a deeper level of destitution. To this, we raise our voice and declare that this abusive relations is over. We call on the government to heed the people’s call: it is high time the government revokes Meralco’s mega-franchise and pulls the plug on EPIRA.

Oppose Meralco's Threat to Trigger Brownouts if TRO is not Lifted! Revoke Meralco's License and Repeal EPIRA!

Meralco, the electricity monopoly, threatened its 5.3 million consumers with brownouts if the temporary restraining order (TRO) on its scandalous 4.5 peso per kilowatt hour is not lifted.

The threat was made by Meralco lawyer Victor Lazatin during the Supreme Court hearings on the rate hike on Feb. 4.

Consumers will not tolerate this blackmail.

On the pretext of losing vast amounts of money, this monopoly, which made 17 billion pesos in profits in 2013, is trying to derail the investigation of its role in the suspicious series of events that led to the rate increase. Meralco has put the blame on seven of its power suppliers that went offline when the Malampaya natural gas plant underwent maintenance from Nov. 11 to Dec. 10, 2013, allegedly forcing Meralco to go to the Wholesale Electricity Spot Market (WESM) for its power deficit. But documents submitted to the Supreme Court showed that it was Meralco’s order to a power supplier--Therma Mobile—that it controls to bid at the maximum allowable price of 62 pesos per kilowatt hour no less than 25 times during that period that was responsible for the skyhigh clearing price at WESM.

Meralco gamed the market, to the detriment of its consumers whom it is obligated to supply at the least possible cost. Moreover, Meralco would not have resorted to buying at WESM’s inflated prices had it made provisions for reserve power from its suppliers in the event of a foreseeable event like the Malampaya shutdown. As President Aquino himself has said, ““There is periodic maintenance [of Malampaya] required. That’s a foreseeable event. If you know what producers of fuel will not be able to produce, then you have to find a substitute. So preparation should have been made for foreseeable events.”

But the problem goes beyond Meralco. It goes beyond the Energy Regulatory Commission, which is the classic example of a regulator that is in the pocket of the regulated. It goes beyond the Department of Energy, which has shown itself to be completely incompetent in planning for the energy needs of the country. The main source of the problem lies in the Electric Power Industry Reform Act (EPIRA), which has placed power generation, transmission, and distribution completely in the hands of the private sector.

Privatization has resulted in monopoly control, inefficient power delivery, and sky-high prices, not in more efficiency, less concentration, and lower prices. Meralco, whose profits have risen over 100 per cent since EPIRA went into effect in 2001, is a monstrous example of EPIRA’s failure.

13 years of exploiting consumers is enough! We demand the revocation of Meralco’s license and the repeal of EPIRA.

Workers call for reformatting of the power industry

The power industry needs not just a reboot but a major reformatting to better serve the country’s current and future energy needs and to satisfy the people’s clamour for affordable and sustainable power.

 

This, according to the labor coalition Nagkaisa, should be the new frame in seeking amendments or replacement to the failed Electric Power Industry Reform Act or EPIRA.

 

The group made this challenge as some of its leaders attended the Department of Energy’s (DoE) consultations on EPIRA amendments while its members called for the law’s scrapping in a demonstration held outside the Legends Hotel in Mandaluyong City. 

 

“A bad law like EPIRA may need some amendments to address the current mess.  But a wrong policy such as wholesale privatization can only be addressed by replacing it with a new one, a better one,” stated Josua Mata, one of the convenors of Nagkaisa.

 

Mata, who is also the secretary general SENTRO, told the DoE that workers will engage the amendment process in Congress and at the same time work for its replacement when such is probable amid the incurability of EPIRA and the viability of other options.

 

Another convenor, Louie Corral of the Trade Union Congress of the Philippines (TUCP), said amendments are necessary on issues of cross-ownership; the generation being a ‘non-public’ utility, reforms in the ERC (composition and rate-setting methodology); privatization of the transmission system and the Agus-Pulangi hydro complexes in Mindanao; retail competition and open access; and on electric cooperatives, among others.

 

It can be recalled that in a petition letter submitted to President Aquino during the Labor Day celebration of 2012, Nagkaisa raised the following issues to the Executive, some of these require legislative actions:

 

1. Removal of oil and power from EVAT coverage;

2. Stopping the indexation of/or pegging the prices of natural gas and geothermal steam to international prices of oil and coal;

3. Stopping the ERC’s implementation of Performance Based Rate (PBR) methodology as this allows power firms to increase rates in anticipation of future expansion and other capital expenditures; and,

4. Reforming the Energy Regulatory Commission (ERC).

 

The group also bats for the re-nationalization of the transmission lines and the permanent stay in the planned privatization of the Agus-Pulangi.

 

Partido ng Manggagawa spokesperson, Wilson Fortaleza, another convenor said the country and the people will not accept another 13 years of failed rule under EPIRA.

 

“It’s time to rethink and come up with a new model of public power that is completely different from what the industry is, before and under EPIRA. Fortunately we are blessed with so much national potential to do that.  It is only the government that thinks it can’t be done without the prescribed track imposed by the ADB and World Bank,” said Fortaleza.

Workers ask Senate to declare EPIRA a failure

WITH the committee on energy resuming its probe on the spike in Meralco rate today, the labor coalition Nagkaisa, pressed the Senate as a whole to declare the Electric Power Industry Reform Act (EPIRA) a failure and consider crafting a new policy framework for sustainable energy and energy democracy.

The group, which held another picket outside the Senate building, said that unless there is a declaration to that effect, public hearings and investigations will offer no material relief to consumers.

Nagkaisa explained that since 2008, consumer groups have attended, submitted position papers, and argued against the ills of EPIRA before committee hearings of both houses of Congress, including those conducted by the powerful Joint Congressional Power Committee (JCPC). Yet no actions were made to address those concerns.

"Public hearings end with another scheduled hearing then nothing happens until another controversy arises. Workers are really tired of wishy-washy intervention on a social problem of this scale," Nagkaisa said, referring to the crises of escalating power rates and diminishing supply.

Nagkaisa asserted that since the enactment of EPIRA which led to the deregulation of the generation of generation sector, privatization of Napocor assets, creation of the spot market, and the introduction of performance-based regulation.  Fraud became the norm in the power industry as shown by rising prices and cartelization.

The group reminded the Senate that in 2008, Senator Miriam Santiago who chaired the JCPC then stated in her opening remarks in one of JCPC's public hearings that EPIRA is a failure; the Senate is a failure as well as the Executive.

"That is seven years ago and the people will not accept another decade of unrewarding probes to a mess that has been there since day one of the implementation of EPIRA," said the group.

Nagkaisa has been protesting the power hikes which they believed were caused by flawed policies under EPIRA.

Workers to ‘gods of Faura’: Stop power firms’ blackmail, fraud

While politicians and businessmen have joined President Aquino for the National Day of Prayer and Solidarity to the victims of natural and man-made calamities, workers in Metro Manila belonging to the labor coalition Nagkaisa, trooped to the Supreme Court to seek relief and ultimate deliverance from unjust power rate hikes. 

 

The fifteen (15) justices, also known as 'The gods of Faura', were set to hear oral arguments tomorrow on several petitions seeking injunctions to Meralco's P4.15/kWh rate increase.  Prime in the agenda to resolve are questions on whether or not the Energy Regulatory Commission (ERC) committed grave abuse of discretion in approving Meralco rate hike; whether or not automatic rate adjustment is valid; and whether or not the generation sector is not a public utility and therefore beyond regulation by ERC, among others.

 

"We pray that the justices deliver us from a decade-old fraud and industry blackmail," said Nagkaisa in a statement released during their picket at the gates of the Supreme Court building. The group was referring to frauds committed under the Electric Power Industry Reform Act (EPIRA), including the latest allegations on collusion and market abuse among power firms and the latter's threat of rotating blackouts had they fail to collect rate increases. 

 

Nagkaisa asserted that since the enactment of EPIRA which led to the deregulation of the generation of generation sector, privatization of Napocor assets, the creation of spot market, and the introduction of performance-based regulation, fraud became the norm in the power industry as shown by rising prices and cartelization.

 

"It is no secret that owners of power firms, the so-called Voltage 5 (Aboitiz, Lopez, San Miguel, Henry Sy, and Pangilinan) have been earning record high profits from record high tariffs of their power-related firms," said Nagkaisa.

 

The labor coalition recalled that lowering the cost of power was the pledge of the Arroyo administration when it prodded Congress to pass the EPIRA upon assumption to power 13 years ago today. 

 

Nagkaisa explained further that since 2008, many of its convenor groups have attended, submitted position papers, and argued against the ills of EPIRA before committee hearings of both houses of Congress, including those conducted by the powerful Joint Congressional Power Committee (JCPC).  Yet no actions were made to address those concerns. 

 

It likewise chided the Executive for peddling the line that the only choice for now is between expensive power, or having no power at all.

 

"We hope the Supreme Court brings light to a dark decade of power hikes, naked greed, and blackmail amid unreliability of power supply," concluded Nagkaisa! 

Workers back Pres. Aquino: IPPs, Meralco stop passing the buck to consumers

The Trade Union Congress Party (TUCP), a party-list with broad membership of workers in the country, welcomed the statement of President Benigno S. Aquino III that power firms should not pass on to the consumers unwarranted costs resulting from their wrong business decisions or practices.

Rep. Raymond D.C. Mendoza of TUCP Partylist said that the power firms – both the independent power producers (IPPs) contracted by Meralco and Meralco itself – must exercise prudence in their charges to consumers. 

It is already immoral that consumers are always held hostage and taken advantage of by these power firms. And it is greed at its highest form when these immoral acts are done even under the situation when the country is in a state of national calamity.

Pres. Aquino declared a state of national calamity three days after typhoon Yolanda hit the country in November last year, thereby freezing the prices of basic commodities and services at the level before the disaster or calamity occurred. 

In December 2013, MERALCO began the staggered collection of P4.15 per kilowatthour increase in power rates due to increase in its generation costs, but this was stopped by the 60-day restraining order issued by the Supreme Court before Christmas last year. MERALCO claimed that the scheduled maintenance shutdown of Malampaya from November 11 to December 10 purportedly compelled it to get more expensive power from the wholesale electricity spot market wherein the main sources are diesel plants.

Malampaya provides natural gas to independent power producers (IPPs) which have power purchase agreements with MERALCO. These IPPs which provide 40% of the electricity needs of Luzon are the 1000-MW Sta. Rita and 500-MW San Lorenzo facilities of First Gen Corporation owned by the Lopezes, and the 1,200-megawatt (MW) Ilijan owned by Kepco Philippines Corporation. 

The TUCP party-list solon said that the actions by MERALCO and these IPPs were unacceptable. He cited the following reasons why this should not be allowed:

• The scheduled maintenance of Malampaya was planned ahead of time, thus the cost consequences should have already been considered in the power supply agreements of Meralco with the independent power producers and this was already imputed in the MERALCO rate. If MERALCO did not prudently build this into their rate or in the power supply agreements then it should bear the loss, not the consumers. 

• Meralco has long been in this business to know that it is both unwise and imprudent not to insure against all risks. If there is a force majeure outage, MERALCO and the power producers that it contracted for power supply should be insured against possible spikes in costs under such circumstance. MERALCO must not pass the burden to consumers when MERALCO should actually insurance itself from the force majeure outages as its power suppliers as well as acts of God. If MERALCO did not enter into any form of insurance or contract stipulation as to who will pay for the alternative supply in case of an outage (i.e. such as in sourcing it from the wholesale electricity spot market or WESM), then it has acted imprudently and must bear this cost. 

• The natural gas IPP plants are combined-cycle plants – the most expensive type of plant – thus it is highly doubtful that the true replacement cost such as diesel power can be more expensive than these.

"The fact that some power plants were charging P62 per kilowatthour taking advantage of WESM is evidence of price gauging and gaming of the market," the solon added.
Rep. Mendoza reiterated a wide range of interventions that the President can exercise his police powers when public interest so requires. He can

• Suspend the operations of WESM, to compel recourse so that MERALCO and the power producers enter into cheaper bilateral contracts between themselves. Without WESM, the power producers have no choice but to sell under bilateral contracts to MERALCO which constitutes 70% of the market, and has market dominance. In short it should be a buyer's market – in this case, MERALCO;

• Conduct an independent investigation;

• Ask the power players to lower their profit margins because public interest requires it. 

If Petilla can offer his head, why can’t Ducut and Ocampo do the same?

The news of Department of Energy (DoE) Secretary Jericho Petilla tendering his resignation in the wake of failure to meet his self-imposed deadline in bringing back electricity to areas ravaged by typhoon Yolanda is all over the air.  Whether the President will accept his resignation or not can be part of a ploy. But nevertheless, Petilla had the guts to place his head on the chopping board.

We wonder, however, if other inept officials in the energy family – particularly Energy Regulatory Commission (ERC) Chairperson Zenaida Ducut and Philippine Electricity Market Corporation (PEMC) head Mel Ocampo can do the same.

Petilla who heads the DoE is equally responsible for the government's failure to stop the P4.15/kWh rate increase imposed by Meralco.  But Ducut and Ocampo who are in the frontline and supposed to be the first persons to detect market failure and protect consumers' welfare stood idle before the coming tsunami of power hikes. They therefore should go.

Truth is, throughout their tenures, they have consistently failed to discharge their duties of regulating the power industry properly. The latest fiasco is just the culmination of years of ineptitude and incompetence.

As early as 2012, they were aware of scheduled maintenance shutdown and yet they did nothing to prevent the largest market failure in the power sector to date. In the process they unduly enriched Independent Power Producers (IPPs) to the tune of 10 billion pesos for a month's worth of power outages!

They should go based on the principle of command responsibility. At the least, they allowed the electricity market to be gamed, and at the most, they are a party to the reported collusion among power firms.

Ducut and Ocampo should be investigated for possible charges of economic sabotage.

It's also the time for the regime of Electric Power Industry Reform Act (EPIRA) to go.

- NAGKAISA! Statement

Lawmakers, activists want collusion in power firms investigated by DOJ

Citing possible cartelization or combination by several power firms which led to Meralco’s sharp increase in generation charge this month, a group of lawmakers and social activists filed before the Department of Justice (DoJ) this morning, a petition asking the Office for Competition to conduct an inquiry into the matter.

Executive Order No. 45 series of 2011 has designated the Department of Justice as the Competition Authority in the country. Created under this EO was the Office for Competition which can receive any form of complaint as a basis for inquiry or further study on possible violations of laws prohibiting cartelization, monopolies, or combinations in restraint of trade as defined in competition laws.

The petitioners availed of this remedy after the Energy Regulatory Commission (ERC), with neither public hearings nor conduct of probe into allegations of market abuse, approved en toto the amount of P4.15/kWh that Meralco can recover from its purchase of power this month due to the scheduled shutdown of Malampaya natural gas platform.

Signatories to the letter/petition include Akbayan Representatives Walden Bello and Barry Gutierrez, Representative Raymond Mendoza of Trade Union Congress of the Philippines, economist Maitet Diokno of the Center for Power Issues and Initiatives, Wilson Fortaleza of Partido ng Manggagawa (PM) and NAGKAISA, and Freedom from Debt Coalition (FDC) President Ricardo Reyes.

These groups and individuals were involved in campaigns on the power issue prior to and after the passage of the Electric Power Reform Act or EPIRA. They maintain that the unabated increase in power rates, market concentration and the threat of another power crisis were the results of EPIRA which for the past eleven years produced nothing but escalating rates and diminishing power supply.

In particular, the petitioners pointed to possible collusions by Meralco, First Gas Power Corporation, San Miguel Corporation, Kepco Philippines, Aboitiz Power, Team Energy Corporation, AES Philippines and DMCI Holdings, Incorporated when their plants went into simultaneous and unscheduled shutdown resulting to more load deficits in the Luzon grid and which forced Meralco to buy a more expensive power from the Wholesale Electricity Spot Market or WESM.

“The expected and scheduled maintenance of Malampaya notwithstanding—an event Meralco was aware of more than six months before its occurrence—and Meralco’s claim that such was not anticipated, and the unscheduled shutdown of several power plants that resulted to Meralco’s recourse to expensive electricity from the WESM, are information that point to a contrived scenario of extreme short-term shortage of electricity for the purpose of raising the price of electricity beyond what it would cost to generate it,” said the petitioners.

The petitioners bewailed that the increase in electricity costs can only add to the economic burden of end-users and consumers who, at a time when the whole nation is reeling from the brunt of Typhoon Yolanda and in anxious anticipation of the holiday season, face increases in prices of basic commodities like liquefied petroleum gas, Metro Rail Transit fares and the like.

The group vowed to escalate their campaign for the overhaul of EPIRA next year.

Predatory MERALCO price hike slammed by NAGKAISA

Meralco already insured against maintenance shutdowns, Power Supply Agreements cover Meralco risk with power providers

The NAGKAISA labor coalition denounced the December P3.50 per kWh rate increase as an immoral imposition and an unconscionable predatory move in the face of our massive national suffering and despair. Instead of moderating its greed, MERALCO and the generating companies First Gas (Sta. Rita), South Premier Power Corporation (Ilijan) and Therma Mobile, Inc. (San Lorenzo) – which are its cohorts – chose to further impoverish hardworking Filipinos and complicate the already difficult road to national recovery.

MERALCO residential rates currently pegged at Php12.46 per kWh will now be hiked to Php15.96 per kWh, representing a 28% increase. The new rate is equivalent to US$ 37 cents per kWh. That is the highest residential rate, bar none, in the WORLD. Its consequences for families coping with the triple whammy of NAPOLES-scale corruption, spiralling oil and LPG prices, and natural calamities are immense.

For industry, where power rates already constitute 45% to 55% of operational costs, particularly for Small and Medium Enterprises (SMEs) and BPOs, the rate increase will greatly affect their business viability. For the national economy, it compromises our regional competitiveness in the ASEAN and will be a disincentive to locators remaining and to the entry of foreign direct investments.

NAGKAISA pointed out that before a new tariff formula called Performance-Based Rate-making (PBR) was implemented by the Energy Regulatory Commission (ERC), MERALCO only made an annual net profit ranging from Php3 to Php6 billion. Under PBR in 2012, MERALCO declared a net income of Php16.25 billion. For 2013 MERALCO expects a consolidated net income of Php17 billion. NAGKAISA decried this overly-generous rate of return allowed by ERC which allowed MERALCO to earn in just one year what it used to take them 3 years to earn.

NAGKAISA also countered the MERALCO assertion that the maintenance work on Malampaya and resorting to the more expensive sources of WESM would result in a power rate increase of anywhere from Php2 per kWh to Php3.50 per kWh. NAGKAISA argues the following:

• · The scheduled maintenance of Malampaya and other plants should or was already imputed in the MERALCO rate. If MERALCO management did not prudently build this into their rate then the owners and management of MERALCO should bear the loss, not the consumers. The maintenance was scheduled way ahead of time and the cost consequences should already have been placed in the power supply agreements which MERALCO entered into.

• If there is a forced outage, MERALCO and the power producers First Gas (Santa Rita), Therma Mobile (San Lorenzo) and SPPC (Ilijan) from which MERALCO buys its power are insured against possible spikes in costs. Why is MERALCO passing the burden to consumers when there is insurance for forced outages. Again, if MERALCO did not enter into any form of insurance or contract stipulation as to who will pay for the alternative supply in case of an outage (the alternative supply in this case is WESM), then MERALCO again has acted imprudently and should bear the cost of its imprudence.

• MALAMPAYA is providing only a certain percentage of the power needs of MERALCO. Why are the entire costs of the downtime of Malampaya being borne by MERALCO consumers? How did it amount to a possible P3.50 per kWh increase?

• Why has the ERC as regulator not stepped-in to validate the current claims of MERALCO when there are Commission on Audit findings of overcollection in 2004 and 2007 in the generation charges of MERALCO? Does ERC take the manifestations of MERALCO and the generation players as gospel truth?

• Why has the DOE – or the Palace for that matter – not addressed the possibility of resorting to the MALAMPAYA FUND to reduce rates and to cushion the impact if indeed there is a problem not anticipated in the power supply contracts entered into between MERALCO and the generators?

THE TRUTH OF THE MATTER IS THAT CONSUMERS ARE BEING MADE TO ADVANCE WHAT THE MERALCO WILL BE COLLECTING FROM ITS INSURERS EVENTUALLY. When MERALCO entered into its supply contracts, it inputted and covered against all projected events and the cost consequences. These costs were built into the original power supply agreement and are therefore built into the rate. Further, MERALCO insured against all risks. MERALCO IS TRYING TO COLLECT FROM ITS CUSTOMERS BECAUSE IT THINKS IT CAN FOOL THEM. ENOUGH IS ENOUGH.

NAGKAISA has warned that the Wholesale Electricity Supply Market (WESM) does not and cannot work where you have insufficient supply. Given inadequate power supply, there will be no competition to drive down rates because it will be a sellers market. NAGKAISA, as a disinterested party, had already warned the government of this in its meetings with the economic cluster of the Cabinet in April and May 2013. NAGKAISA notes that notwithstanding the notable failure of WESM to bring down electricity prices in Luzon and Visayas, the DOE is currently piloting it in Mindanao where power supply is also inadequate.

NAGKAISA warns that the general public are beginning to realize that the Palace is a defender of MERALCO by its statements that there is “regularity” to the rate increase because it was “in accordance with the law.” NAGKAISA reminds the Palace that it is not for the NAGKAISA or the Palace nor the DOE to determine regularity. That is a function that clearly lies with the ERC. It is the ERC which must determine the course of action to be taken: to set the increase aside or to cushion its impact through rate increases staggered over a longer period of time.

NAGKAISA also reminds the Palace that perhaps something is deadly wrong with the EPIRA Law and that it is time to take a second hard look on how to ensure affordable power and supply that is reliable. We reiterate our call for the creation of a Presidential Task Force to bring down power rates. The Palace should talk to disinterested parties – not the power cartel.

Finally, NAGKAISA reminds the Palace that if in its fight against corruption, it brought down an Ombudsman and a Chief Justice, it can certainly do something about a certain ERC Chairperson named Ducut. Consumer and labor representation in the ERC is long overdue.

Broad labor vows to carry on with the fight against poverty, corruption, climate crisis

On 150th Day of Bonifacio:

Marching under the theme "Kalayaan Mula sa Pulitikong Kawatan, Delubyong Kahirapan, Trahedyang mula sa Kalikasan", some 5,000 members of the broad labor coalition NAGKAISA (United) took to the streets today to celebrate the 150th birth anniversary of the plebeian hero Andres Bonifacio.

The protest, which assembled in the morning at the Mehan Garden for a short program and wreath-laying, marched to Mendiola at noon to call on President Aquino to urgently address corruption, poverty and climate crisis.

The group also demanded that their hero be declared as the first president of the Philippine republic.

Turning in his grave

Josua Mata, NAGKAISA convenor and Alliance of Progressive Labor (APL-SENTRO) Secretary-General, said the miserable state of Filipino workers and the dark clouds of hopelessness hovering above the nation are enough for Bonifacio to be turning in his grave.

“NAGKAISA thus call on the Aquino administration to address the problems of low wages, contractualization, spiraling electricity and water rates, uncontrolled oil prices, forcible demolition of informal settlers and, political patronage and corruption,” said Mata.

He added that the State not only has the duty of providing full protection but also of raising the dignity of labor. “One step to dignify labor’s role in our struggle for independence is to rectify historical errors and proclaim the late Supremo as the first president of the Philippine republic,” he said.

Corruption and elite rule

Among the issues highlighted at the protest was the controversial pork barrel scam. Bukluran ng Manggagawang Pilipino (BMP) president Leody de Guzman said, “Workers are being made to believe the so-called ‘tuwid na daan’ of the Aquino regime. Yet, despite the all-too familiar critique against the Priority Development Assistance Fund (PDAF) for breeding political patronage, this seemingly anti-corrupt administration doubled it in 2010”. The Supreme Court declared the PDAF unconstitutional last November 19.

De Guzman added, “We owe this victory against the PDAF to the thousands that participated in the anti-pork barrel protests since the August 26 Million People March in Luneta. Although we welcome the recent decision of the Court, we call on the people to remain vigilant. Traditional and elitist politicians like senate president Drilon and budget secretary Abad are now seeking loopholes to retain the legislative largesse and the entire pork barrel system. Don’t expect political dynasties to go down without a fight”.

Poverty, low wages and contractualization

At the NAGKAISA mass action, speakers tackled gut-issues such as contractualization, starvation, wages and high power rates.

Gerry Rivera, president of the Philippine Airlines Employees Association (PALEA) stated, “PALEA has lifted our picket lines because we have won the battle at PAL through the collective solidarity of NAGKAISA and the entire labor movement. But the fight for regular jobs is not yet over, the scourge of contractualization remains as the number one threat to workers’ rights and welfare”.

Last November 14, PAL management settled with PALEA which members have daringly fought and resisted the company’s outsourcing/contractualization program for 26 months. The settlement wins back the union and its members' status as regular employees.

Renato Magtubo of Partido ng Manggagawa (PM), meanwhile, criticized the Aquino administration for preserving starvation wages.

“Wage Order 18 of the NCR wage board is the lowest pay hike for minimum wages in its entire history. Last May 2012, after Labor Day, Noynoy echoed the capitalist blackmail line against wage increases by threatening us with retrenchment and closures. This yellow government maintains wages far below the cost of living in adherence to its tacit policy of cheap labor,” Magtubo avowed.

Alan Tanjusay, Trade Union Congress of the Philippines (TUCP) spokesperson added that the purchasing power of current wages is falling due to spiraling commodity prices and electricity rates. He said, “Electricity rates in the country are among the highest in Asia, causing not only the unabated increase in prices and the decrease in real wages. High power rates are the single most deterrent to investments thereby preventing job creation that is essential to genuine inclusive growth”.

Climate change and man-made calamities

Nagkaisa bewailed that a century and half hence the birth of Gat Andres Bonifacio and the nation is still in shambles. Super typhoons have become the new normal due to climate change and global warming. The recent disasters brought by earthquakes and storms revealed the government’s ineptitude to respond to natural calamities.

“Unless the Aquino administration becomes an active player in the global campaign for climate justice, for lower carbon emissions from advanced countries and for reparations to devastated Third World countries, it will be forever remembered in history as the worst man-made calamity to hit the nation,” Mata concluded.

NAGKAISA! lauds settlement of PAL-PALEA dispute

We welcome with great enthusiasm the amicable resolution of the PAL-PALEA labor dispute this afternoon. We congratulate both the new management of the Philippine Airlines (PAL) and the leadership of the Philippine Airlines Employees Association (PALEA) for coming into an agreement that finally settled the country’s biggest labor dispute in recent years.

The labor movement that we represent considers this as one positive news amid the harrowing devastations brought upon us by typhoon Yolanda. It can be recalled that PALEA members were locked out and outsourced at the height of typhoon Pedring on September 27, 2011. Now after Yolanda and with this final agreement, PALEAns are assured of re-employment as regular workers and getting a much improved financial package than what was granted to them by the labor department and the Office of the President (OP). This is sweet victory, indeed.

Yet this is not just a victory for PALEA. This is likewise victory for Nagkaisa!, in fact the first for the coalition’s campaign against precarious work and contractualization. When we embraced PALEA’s call, “Ang laban ng PALEA ay laban ng lahat!”, we thereby considered this struggle as our own. This is victory to all Filipinos who continue to struggle for decent work.

Nagkaisa! regards this victory as an inspiration in pushing further for the enactment of the security of tenure bill, reforms in wage fixing mechanisms, and other agenda that promote the interest and welfare of Filipino workers.

The NAGKAISA Convenors: Alliance of Free Workers (AFW), All Filipino Workers Confederation (AFWC), Automobile Industry Workers’ Alliance (AIWA), Associated Labor Unions (ALU), Associated Labor Unions – Association of Professional Supervisory Officers Technical Employees Union (ALU-APSOTEU), ALU-Metal, Associated Labor Unions-Philippine Seafarers’ Union (ALU-PSU), ALU-Textile, ALU-Transport, Associated Labor Unions-Visayas Mindanao Confederation of Trade Unions (ALU-VIMCOMTU), Alliance of Progressive Labor (APL), Association of Trade Unions (ATU), Bukluran ng Manggagawang Pilipino (BMP), Confederation of Independent Unions in the Public Sector (CIU), Confederation of Labor and Allied Social Services (CLASS), Construction Workers Solidarity (CWS), Federation of Coca-Cola Unions (FCCU), Federation of Free Workers (FFW), Kapisanan ng Maralitang Obrero (KAMAO), Katipunan, Pambansang Kilusan sa Paggawa (KILUSAN), Kapisanan ng mga Kawani sa Koreo sa Pilipinas (KKKP), League of Independent Bank Organizations (LIBO), Manggagawa para sa Kalayaan ng Bayan (MAKABAYAN), MARINO, National Association of Broadcast Unions (NABU), National Federation of Labor Unions (NAFLU), National Association of Trade Unions (NATU), National Confederation of Labor (NCL), National Confederation of Transportworkers’ Union (NCTU), National Union of Portworkers in the Philippines (NUPP), National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN), Philippine Airlines Employees Association (PALEA), Postal Employees Union of the Philippines (PEUP), Philippine Government Employees Association (PGEA), Pinag-isang Tinig at Lakas ng Anakpawis (PIGLAS), Philippine Integrated Industries Labor Union (PILLU), Philippine Independent Public Sector Employees Association (PIPSEA), Partido Manggagawa (PM), Philippine Metalworkers Alliance (PMA), Public Services Labor Independent Confederation (PSLINK), Philippine Transport and General Workers Organization (PTGWO), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), Trade Union Congress of the Philippines (TUCP) and, Workers Solidarity Network (WSN)