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Philippine Business Magazine: Volume 8
No.2 - News & Updates
Philippine Population
76.4 Million and Counting
The Philippine population, as revealed by the completed
May 2000 census, is now pegged at 76.4 million – and growing.
The National Statistics Office says the increase in population represents
an annual growth rate of 2.36%, a big leap from the 2.32% annual
growth rate in the first half of the 1990s. The observed population
growth for the past decade was surprising for many, considering
that in the past decades, the population trend had been on the decline.
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| The difference between 2.36%
and 2.32% may seem insignificant, but not when applied to population
levels. This results in a surplus of labor force who have to
contend with being “contractuals” for a longer time
than required |
The Commission on Population, in its State of the
Philippine Population Report 2000, expressed concern over the high
growth rate. If measures will not be taken to address the problem,
the country’s population is expected to double in the year
2030. This surely puts pressure on the government to raise funds
for social infrastructure and job opportunities in order to achieve
a sustainable growth of national income, which translates to a more
acceptable standard of living for the Filipinos.
The Commission on Population plans on actively promoting
a coherent and comprehensive population policy framework that will
integrate population policy into the government’s broad socioeconomic
development plan. The policy framework the commission will be developing
will take into consideration population management, fertility, family
planing, reproductive health and rights, and equality between men
and women, with the hope of cutting down the rapid population growth
in the years to come. These issues are to be tackled by the commission
and disseminated to the public, because it believes that information
leads to awareness, and awareness leads to action.
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Subcontracting Under Fire
Scrimping on Employee
Privileges
There are two ways by which employers look at
employees – an asset or a cost. For those who treat people
as a cost, employing contractuals is a way of cutting down
on costs. As such, some employers resort to “subcontracting”
which allow them to get some savings but obviously does not
sit well with the labor sector.
Owing to the strong clamor from some sectors – especially
the labor sector — for its revision or repeal, the Department
of Labor and Employment is currently reviewing Department
Order (D.O.) No. 10 on subcontracting. Moreover, during the
Labor Day celebrations, President Arroyo suspended the order
until the completion of its review and the subsequent issuance
of a new order supplanting it.
A well-represented labor sector wants the order on subcontracting
repealed. Labor groups argue that the proliferation of subcontracting
activities — defined as arrangements whereby a principal
agrees to farm out with a contractor or subcontractor the
performance of a specific job within a definite period —
is attributable to the introduction of the said department
order. Specifically, labor groups noted that Section 6 of
the order encompasses a wide range of permissible activities
thereby giving businesses leeway to actively engage in subcontracting
without violating any law. Also, they hold that subcontracting
disenfranchises workers who cannot belong to labor unions.
Business groups, on the other hand, do not want the order
repealed, but just reviewed. Federation of Philippine Industries’
president Raul Concepcion notes that although D.O. 10 has
its faults, it has also encouraged entrepreneurship and the
development of small businesses in the country via enhanced
labor flexibility. Nevertheless, employers want a closer look
at provisions on registry and inspection and monitoring of
subcontracting activities. Fact is, reporting or registry
of subcontracting activities and their resultant contracts
do not cover most businesses because it is not a compulsory
requirement. The order does not impose a criminal liability
for employers who do not report subcontracting activities.
Prior to this Labor Department Order, subcontracting or contracting
activities were regulated by Articles 106-109 of Book III
of the Labor Code.
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Deteriorating Tax Collection Efficiency
Lost Gains
The biggest obstacle to the country’s economic
recovery at the moment is the huge government deficit. So much hinges
on how effective the new revenue officials will be in reversing
the past two years’ decline in tax collection efficiency.
Starting from a revenue effort of 17.7% in 1991, the ratio reached
almost 20% in 1997. Tax effort was raised from 14.4% in 1991 to
its peak of 16.3% in 1997. But since then, both indicators have
gone downhill. The economic slowdown sparked by the Asian financial
crisis was no excuse – the indicators are ratios to GDP. In
2000, GDP had reportedly grown by 3.9%, faster than the previous
year’s 3.3%. Notice, though, that both revenue effort
and tax effort fell.
Breakfast Cereals Before, Infant Nutrition
Now
Another ASEAN Center
Nestle Phils. will expand its operations and build
its ASEAN supply center for infant nutrition and filled milk products
in the country. The said expansion covers its two factories in Cabuyao
— the largest volume producer of infant nutrition products
in the region today — and Cagayan de Oro, which manufactures
filled milk powder. Nestle Phils. Chairman and CEO Juan Santos also
announced that the firm will invest close to P3 billion in both
factories over the next two years in order to supply the needs of
Nestle markets in ASEAN.
For this year, Nestle Phils. expects to export more than 25,000
metric tons of milk powder worth US$72 million to neighboring countries
in ASEAN. This volume is expected to increase by more than 20% in
2002.
As early as 1991, the Philippines became the Nestle ASEAN Supply
Center for breakfast cereal products. The choice of Cabuyao and
Cagayan de Oro factories as ASEAN Supply Center demonstrates Nestle
shareholders’ confidence not only in the country’s competence
but also in the Philippines under the new administration, Santos
states. Besides export opportunities, the expansion is seen to enhance
employment opportunities for some 1,000 people in downstream industries
through local suppliers of packing materials, transport, and other
related services.
| Election Figures |
| In May, the country will
hold its national, congressional, and local elections. Some
numbers to know: |
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36.5
million registered voters, a 7.3% increase over the 1998 elections
435,268
precincts. There are 234,259 (established) and 201,009 (clustered)
precincts nationwide. COMELEC procured 104,000 additional
ballot boxes to augment the shortfall of boxes that were kept
in custody because of pending election protests. Each precinct
will have at least one ballot box
37
Senatorial candidates. COMELEC originally accepted 67 candidates
on 12 February but later narrowed down the list to the present
number
162
Party-List candidates. There were 56 new party-list groups
accredited by the COMELEC in 2001. More sectors are participating
this year compared to 122 during the 1998 elections. Organizations/coalitions,
political parties, and professionals dominate this year’s
party-list groups
53
Congressional seats for Party-List representatives. Only 20%
of the House membership are allotted for the sectoral representatives.
A maximum of three seats will be allowed per party-list representative.
To get one seat, the party should get at least 2% of the votes
for the party-list
209
Congressional seats which 494 candidates are vying for
79
Gubernatorial and Vice-Gubernatorial posts each. There are
238 candidates vying for Governors; 217 for Vice-Governors
742
Provincial Board Member posts
99
City Mayoralty and Vice Mayoralty posts each
1,510
Municipal Mayoralty and Vice Mayoralty posts each
1,098
City Councilor posts
12,100
Municipal Councilor posts
P900
per day allowance for teachers serving during the elections
P5
per voter is the amount a national candidate (member of a
political party) can spend in the campaign
P2.96
billion COMELEC budget for this election
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