TAMBULI Weekly Newsletter The Official e-newsletter of the Federation of Philippine Industries

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1 TAMBULI Weekly Newsletter The Official e-newsletter of the Federation of Philippine Industries Volume 17 Issue No November 2013 FPI SUCCESFULLY HELD ITS 3 RD PHILIPPINE MANUFACTURERS AND PRODUCERS SUMMIT The Federation of Philippine Industries (FPI) had a successful run of its 3 rd Philippine Manufacturers and Producers Summit at the Grand Ballroom Hotel InterContinental Manila, Makati City last Thursday, 14 November The gathering, attended by more than 300 delegates, tendered the theme Inclusive Employment through Industrialization. In an earlier interview with FPI President George Chua, he noted that After raising awareness on the strategic importance of manufacturing and producing in the Philippines in our previous summits, we now need to focus on one of the most important aspects of our country s development, which is employment, in particular, inclusive employment. FPI Director and Chairman of the Summit Organizing Committee, Roberto Batungbacal said that many heeded to the call of FPI for an industrial policy; after which the realization came that labor and employment is an indispensable element to inclusive growth and, thus, the summit has come full circle. Invited as keynote speaker was DOLE Secretary Rosalinda Baldoz. Top economists shared their views, among whom are Calixto Chikiamco, political economist; Dr. Raul V. Fabella, UP School of Economic professor; and Dr. Gerardo Sicat, professor; UP School of Economics professor emeritus. A panel discussion by industry leaders and members of the FPI from labor-intensive manufacturing subsectors discussed and shared their previous and ongoing challenges, as well as the opportunities. The discussion was moderated by Dr. Rene Ofreneo of the UP School of Labor and Industrial Relations. In concluding, FPI Chairman Emeritus Meneleo Carlos, Jr. said that the Federation will work closely with the Department of Labor and Employment (DOLE) to address current concerns from both ends of labor and capital. FPI BAYABAY MEDIA AWARD The Federation of Philippine Industries (FPI) announced during the 3 rd Philippine Manufacturing Summit the first awardees of the FPI Bayabay Media Award which the Federation will give annually starting this year.

2 The recipients of the 2013 FPI Bayabay Media Award were BUSINESS MIRROR and PHILIPPINE DAILY INQUIRER. Chairman Jesus Lim Arranza in presenting the 2013 FPI Bayabay Media Award shared that Long before the advent of the newspapers, radio, television and other modern technology to disseminate news, a town crier in Sorsogon called BAYABAY would go to the town plaza and beat his drum in order to alert the town folks who would then earnestly gather to listen to the major news, important announcements, typhoon warnings that he will make known. The Federation of Philippine Industries (FPI) has chosen BAYABAY to depict its award not only to pay tribute to our history and the countless unsung heroes, but, also to bestow this award to outstanding and deserving contemporary media practitioners. Mr. T. Anthony C. Cabangon of BUSINESS MIRROR and Ms. Amy Remo of the PHILIPPINE DAILY INQUIRER received the award. FPI Annual Sustainable Development Recognition Ceremony The following were the winners for the 2013 FPI Sustainable Development Ceremony during the 3 rd Manufacturers and Producers Summit held which was held yesterday, November 14, 2013 at the Hotel InterContinental Manila, Makati City. 1. Philippine Plastics Industry Association., as the Most Outstanding Industry Association in the practice of Corporate Social Responsibility (CSR); 2. Toyota Motors Philippines Corporation., as the as the Most Outstanding Corporation in the practice of Corporate Social Responsibility (CSR) 3. Holcim Philippines, Inc. as the Most Outstanding Corporation in the practice of Management of Waste. 4. United Pulp and Paper Company, as the Most Outstanding Corporation in the practice of Health and Safety. 5. City of Las Piñas, as the Most Outstanding Local Government Unit in the practice of Health and Safety 6. Lafarge Republic, Inc as the Most Outstanding Corporation in the practice of Optimum Use of Resources; 7. Cement Manufacturers Association, as the Most Outstanding Industry Association in the practice of Optimum Use of Resources; and 8. City of Naga, Cebu Province as the Most Outstanding Local Government Unit n the practice of Optimum Use of Resources. The Annual FPI Sustainable Development Awards are given to Corporations, Industry Associations and Local Government Units (LGUs) who demonstrated exemplary practices in the

3 following categories, namely: Corporate Social Responsibility (CSR), Management of Waste, Optimum Use and Recycling of Resources and Health and Safety. This year s Panel of Sustainable Development Judges: Department of Environment and Natural Resources (DENR) Secretary, Hon. Ramon C. Paje, as the Overall Chair, President of the Solid Waste Management Association of the Philippines, Ms. Grace Sapuay for Social Corporate Social Responsibility (CSR), Presidential Adviser for Environmental Protection, Mr. Juan Romero O. Nereus Acosta for Management of Waste, the President of the Earthday Network Philippines, Mr. Roberto Guevarra for Optimum Use and Recycling of Resources, and former Department of Health (DOH) Secretary, Mr. Jaime Z. Galvez Tan for Health and Safety. FPI lauded swift action of DOF Secretary in addressing cigarette smuggling The Federation of Philippine Industries (FPI) lauded the swift action made by Sec. Cesar V. Purisima in addressing the new modus operandi on cigarette smuggling in the country. Mr. Jesus Lim Arranza the Chairman of FPI and also the concurrent chair of the FPI Anti-Smuggling Committee noted the immediate issuance by Sec. Purisima of an order to both the BIR and the BOC to look into the alleged technical smuggling and tax-evasion schemes of a small player in the cigarette industry which used to corner a miniscule portion of the market, but, has made a meteoric leap and now has 18.7% share of market. The said cigarette company is selling its products to retailers at P16.00 per pack. Simple arithmetic will show that after paying excise tax of P12 and the 12% VAT, the company is left with P2.30 to cover direct material cost, factory overhead and operating margins. Indeed, it is impossible to manufacture low-priced cigarettes at that amount especially for a small scale manufacturer with lower economies of scale. Hence, this unfair practice can undercut the competition thru low prices which is made possible through illicit trade practices. Independent market research study shows that the company s volume in the trade is much higher compared to the actual withdrawals it reports to the Bureau of Internal Revenue. Moreover, there is possible under-payment of customs duties and taxes, under-valuation of raw materials, and diversion of raw materials imported under warehousing entries which were used for domestic production without payment of duties and taxes. If proven true, this practically creates an unlevel playing field. Worse, it is also inimical to the stability of the country in general considering that it is cheating on the excise tax which is due to the government to fund its various sensitive programs, Mr. Arranza added. 12 th FPI Golf Classic, February 06, 2014 The 12 th Annual FPI Golf Tournament will be held on February 06, 2014 (Thursday) at the Tagaytay Midlands Golf Course, Tagaytay City. (Details to follow)

4 LEGISLATIVE COMMITTEE HEARING Senate Monday, November 18 Time & Venue Agenda Agriculture & Food 1:00 P.M. Sen. A.B. Padilla Room 2/F Right Wing, Senate P.S. Res. 233 Inquiry on the claims of certain groups and agencies concerning the actual state of rice supply in the country P.S. Res. 244 Inquiry on the reported claims that the cost of the National Food Authority's latest rice importation from Vietnam was disadvantageous to the government by P457 million Tuesday, November 19 Time & Venue Agenda Public Service Economic Affairs Public Works jt. with Finance 1:00 P.M. Function A The Legend (Hong Kong)) Seafood Restaurant, CCP Complex, Roxas Blvd., Pasay City 1:30 P.M. Committee Room No.1 2/F Core C, Senate 1:30 P.M. Committee Room No.2 2/F Core C, Senate Briefing on the Status of the Philippine Land Transportation S. No Amending R.A. No. 7042, as amended by R.A. No. 8179, otherwise known as the Foreign Investments Act of 1991 S. No Mandating the National Irrigation Administration (NIA) to accelerate National Irrigation Development Program S. No Promoting the rural development by providing for a six-year accelerated Irrigation Program for the construction and rehabilitation of irrigation projects Thursday, November 21 Time & Venue Agenda Cooperatives jt. with House Committee on Cooperatives Development; Civil Service & Government Reorganization; and Finance Government Corporation & Public Enterprises 10:00 A.M. Sen. L.M. Tanada Room 2/F Right Wing, Senate 1:00 P.M. Sen. G.T. Pecson Room 2/F Right Wing, Senate S. Nos. 89, 263 & Cooperative Development Authority P.S. Res. No Inquiry on the mandate, powers, and responsibilities of the Philippine Reclamation Authority (PRA) under its charter, rules and regulations, and other issuances

5 House of the Representative MONDAY, 18-NOVEMBER-2013 Committee/Sub-Committee Time and Venue Agenda/Resource Person ENERGY WAYS AND MEANS Conf. Rms. 1&2 RVM 01:00 PM R. R. Andaya Hall TUESDAY, 19-NOVEMBER-2013 Committee/Sub-Committee Time and Venue Agenda/Resource Person AGRICULTURE AND FOOD jt. w/ FOOD SECURITY BANKS AND FINANCIAL INTERMEDIARIES WAYS AND MEANS LABOR AND EMPLOYMENT Fuentebella Hall, SWA Conf. Rms. 1&2 RVM R. R. Andaya Hall De Venecia Hall, SWA Briefing by the National Electrification Administration (NEA), Philippine Rural Electric Cooperatives Association (PHILRECA), Private Electric Plant Operators Association (PEPOA) and Manila Electric Company (MERALCO) on the electric power industry HR 29 â Inquiry into the reported unremitted tax payments made by large taxpayers to the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) resulting in hundreds of millions of pesos in revenue losses to the government (Rep. Enrique Garcia Jr.) Continuation of the joint inquiry on the countryâ s rice and food security situation, especially in the light of recent calamities in the country Organizational meeting HBs 860, 1692, 2485, 2999, 3021 & 3112 â Amending RA 7653, otherwise known as the New Central Bank Act (Reps. Sergio Apostol, Karlo Alexei Nograles, Marcelino Teodoro, Rufus Rodriguez, Deputy Speaker Carlos Padilla and Speaker Feliciano Belmonte Jr.) Briefing by the Bureau of Customs (BOC) on the following: fiscal performance for the last five (5) years; semi-annual and annual performance in compliance with RA 9335, or the Attrition Law of 2005; fiscal policies/reforms up to 2016; status of the Run After the Smugglers (RATS) project; reorganization of the BOC; and other customs regulations/policies HB 221 â Instituting the Enterprise-Based Education and Training Code in the Philippines, amending the Labor Code, RA 7686 or the Dual Training Act and EO No. 111, and consolidating all policies and programs to afford and to promote employment, protection of trainees/students and to improve the quality and relevance of education (Rep. Cinchona Cruz-Gonzales) HBs 1594 & 2227 â Reforming the National Apprenticeship Program and providing regulatory standards for the training of apprentices, and for accreditation of the programs (Reps. Rodrigo Abellanosa and Emmeline Aglipay)

6 WEDNESDAY, 20-NOVEMBER-2013 Committee/Sub-Committee Time and Venue Agenda/Resource Person TRANSPORTATION AGRARIAN REFORM GOVERNMENT REORGANIZATION jt. w/ NATURAL RESOURCES INFORMATION AND COMMUNICATIONS TECHNOLOGY Nograles Hall, SWA Conf. Rms. 1&2 RVM Belmonte Hall, SWA Nograles Hall, SWA HB 887 â Amending Article 287 of PD 442, as amended, otherwise known as the Labor Code of the Philippines by adding a new Article 287-A reducing the retirement age of race horse jockeys from 60 to 55 years (Rep. Magtanggol Gunigundo I) HB 2052 â Reducing the retirement age of surface mine workers, mill plant workers and support services, such as mechanical, electrical and tailings pond personnel to 50 years old, amending for this purpose certain provisions of the Labor Code of the Philippines and the Social Security Law (Rep. Ronald Cosalan) Technical Working Group meeting on: HB 719 â Establishing the Maritime Industry Authority (MARINA) as the single maritime administration responsible for the enforcement of international agreements/conventions governing maritime global professionals, and appropriating funds therefor (Rep. Jesulito Manalo) HR 347 â Urging the Professional Regulation Commission (PRC), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), National Telecommunications Commission (NTC), Department of Health (DOH), and all other government agencies, which are all mandated by EO 75, to cooperate and support the MARINA as the single maritime administration in the forthcoming audit by the European Maritime Safety Agency (EMSA) in October 2013 (Rep. Jesulito Manalo) HB 471 â Strengthening and institutionalizing credit, guarantee and insurance support of the Land Bank of the Philippines to agrarian reform beneficiaries, small farmers and fisherfolk, amending for the purpose, Chapter IV of RA 3844, also known as the Agricultural Land Reform Code (Rep. Agapito Guanlao) HBs 1981, 2044 & 3109 â Instituting reforms in the land administration system (Reps. Rufus Rodriguez, Diosdado Macapagal Arroyo and Romeo Acop) HBs 353 & 1778 â Mandating the telecommunications service providers to send free mobile alerts in the event of natural and man-made disasters and calamities (Reps. Neri Colmenares and Carlos Isagani Zarate) HB 1030 â Providing for the establishment of the no calls and no text registration system (Rep. Roman Romulo)

7 PEOPLE'S PARTICIPATION Conf. Rm. 6 RVM HR 86 â Directing the Department of Transportation and Communications (DOTC) to look into the scheme of unscrupulous individuals who send out fraudulent text messages in order to dupe unsuspecting consumers and con them of their hard-earned money with the end in view of putting a stop to this sinister activity (Rep. Winston â Winnieâ Castelo) Organizational meeting Briefing by the National Economic and Development Authority (NEDA), Caucus of Development NGO Network (CODE-NGO) and Philippine Council for NGO Certification (PCNC) on their respective functions and on the role and responsibilities of non-government organizations (NGOs) Prepared by the FPI Secretariat Notice: Please be informed that the news articles/write-ups of FPI President George S. Chua and FPI Sustainable Development Committee Chairman Ernesto Ordoñez published and circulated in newspapers may likewise be accessed thru the FPI website: Unit 701 Atlanta Centre Condominium, #31 Annapolis St., Greenhills, San Juan City Tel. Nos , & Fax No fpi@fpi.ph fpi@philonline.com fpi@pldtdsl.net fpi.secretariat@gmail.com Website: