Jinggoy inspects Hanjin shipyard in Subic

A day after Sen. Jinggoy Estrada grilled Hanjin during the Senate inquiry, he personally made a site inspection at the controversial shipyard in this Freeport.

Hanjin has been under fire after it has recorded 19 deaths and a number of accidents involving their workers.

Estrada arrived at Hanjin 1:30 p.m. via boat.

He immediately wanted to do a spot inspection but was told that there would be a brief power point presentation at the fourth floor of the administration building of Hanjin.

The presentation was at its half way when Estrada interrupted and said that he wanted to proceed with the inspection.

Estrada then went to the ground floor, walking towards the direction of the cafeteria but was irked when he was told the door was closed and he could not pass through there.

He then boarded a bus provided by Hanjin then shortly stopped at an assembly area although no workers were there. The senator then demanded to the Hanjin director that he be brought to an area where he could talk to workers. He later realized the workers were reluctant to speak with him.

A worker who requested not to be named told The Times that management was evidently monitoring them during the inspection, which was the reason for their hesitance to speak with the senator. “We might lose our jobs,” the worker noted.

Even members of media were having a hard time getting interviews with the workers.

Another round of inquiry regarding the deaths and accident at Hanjin has been set for Wednesday at the senate. (Anthony Bayarong, Manila Times)

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SBMA chief: Let’s work together for the sake of our workers

Subic Bay Metropolitan Authority (SBMA) administrator and chief executive officer Armand Arreza called for joint efforts in addressing safety issues at the Hanjin shipyard and construction site in Redondo, Zambales.

“Due to the risks inherent in shipbuilding activities, we need to strengthen safety guidelines and build up the safety consciousness of individual workers to ensure their welfare. But we can only do this if all concerned government agencies would work together towards this end,” Arreza said.

At present, at least some 20,000 workers are fielded in shipbuilding and construction work in the 236-hectare facility. This number oftentimes swells, depending on the level of work activities to be done.

In the joint Senate labor and local government committee hearing held last Tuesday, SBMA reported that the majority of the accidents that occurred last year were due to “unsafe acts” or workers’ behavior, while others were caused by both unsafe acts and work conditions.

Arreza said this makes it imperative for the SBMA, the Department of Labor and Employment, and Hanjin not only to look more deeply into the safety conditions of the workplace but also to cultivate a culture of safety among the workers, most of who come from the informal sector.

“Although we’re working together with DOLE to ensure that Hanjin complies with our Labor Code, we need to focus not just on minimum compliance, as this does not seem adequate to protect workers engaged in big-scale shipbuilding activities,” Arreza noted, as he reiterated the need to build a culture of safety, “which cannot be done overnight”.

According to the SBMA chief, the agency is thus going beyond the minimum requirements of labor laws and is in the process of introducing more stringent guidelines based on the standards of the US Department of Labor’s Occupational Safety and Health Administration (OSHA) to ensure the workers’ protection.

“The OSHA has specific guidelines for each industry type, particularly shipbuilding, which it describes as ‘traditionally hazardous with an injury-accident rate more than twice that of construction and general industry’,” Arreza explained.

He added that by addressing workers’ safety effectively, “not only will we be able to prevent work-related injuries, illnesses and deaths but also ensure that the benefits of gainful employment redound to the improved welfare of workers and their families”.

Meanwhile, HHIC-Phil president Jeong Sup Shim expressed Hanjin’s equally serious concern for safety issues plaguing the US$ 1.68-billion company since it began operating in Redondo in 2006.

“We take our workers’ safety seriously,” he said, adding that Hanjin would like nothing more than to ensure that all its workers are well-protected and oriented about safety guidelines.

Shim also disclosed that Hanjin’s annual payroll and workers’ benefits have reached almost PhP3 billion, which go directly to workers and their families.

“Despite the global recession, Hanjin continues to maintain its very big workforce and we hope that this contributes both to the national and local economy,” he said, referring to the revenues and the multiplier effect that its operations here generate.

Nonetheless, the Hanjin executive gave the assurance that Hanjin would continue to cooperate with concerned authorities in addressing safety issues.

“We are doing a lot to comply (with labor and safety requirements), but we are ready to do even more,” he affirmed. (SBMA Corporate Communications)


PHOTO: SBMA Administrator & CEO Armand Arreza

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Senate body eyes brief halt to Hanjin operations

Manila, Philippines - The Senate panel investigating the deaths of workers of Hanjin Heavy Industries and Construction is inclined to recommend the temporary suspension of the Korean firm's operations for failure to comply with the country's labor laws.

Senate Pro Tempore Jose "Jinggoy" Estrada, chairman of the Committee on Labor, Employment, and Human Resources Development, said it was clear that there was neglect on the part of Hanjin that resulted in the deaths of 19 workers in the facility it is building in Subic Freeport.

"[The possible recommendation of the committee would be] temporary cessation of the operations until after all labor requirements have been complied with," Estrada said in a chance interview after the hearing.

Sen. Pilar Juliana Cayetano, former chairman of the Environment Committee that investigated the violations allegedly committed by Hanjin, supported Estrada's recommendation.

"The committee will recommend the temporary suspension of its operation," she said.

A total of 19 deaths at sprawling Hanjin shipbuilding facility have been reported, the latest of which happened on January 25.

A South Korean expat working at an assembly facility of the Hanjin Heavy Industries Corp. Philippines in Subic was killed when a forklift ran over him.

Police reports identified the fatality as Choi Dong Baek, a 51-year-old supervisor at the sprawling shipbuilding complex located at the Redondo Peninsula in Subic Bay. He was ran over by a forklift operated by Menti Dacanay, a Filipino worker, at around 12:45 a.m. at the vicinity of assembly shop C where metal works are done.

On January 23, Raldon del Rosario, 19, from Kalinga province, an employee of Redondo I-Tech Corp. He died of massive head injuries.

Another worker, Camalao Bochie, 24, also from Kalinga, suffered leg injuries. Both victims were taken to St. Jude Hospital in Olongapo City, where Del Rosario was declared dead on arrival.

Initial reports released by authorities said the victims were pinned down by the metal base of a newly installed manual canvass door that fell at one of the assembly facilities of Hanjin.

Last year, government regulators ordered Hanjin to stop its operations in its one of its assembly shops after an 8-ton girder assembly being lifted by a crane fatally struck a worker at the back of his head. Work, however, resumed as the company assured that all safety measures were being undertaken. (Amita Legaspi, GMANews.TV)

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SBMA seeks to unlock Hanjin Subic’s corporate layers

The Subic Bay Metropolitan Authority (SBMA) is now seeking to untangle the interlocking layers of subsidiaries and subcontractors operating at the shipyard of Hanjin Heavy Industries Co.-Philippines (HHIC-Phil) in Subic as part of a plan to address occupational health and safety concerns.

A total of 19 fatal accidents have been recorded at the Hanjin shipyard since February 2007, leading the SBMA to issue several cease and desist orders (CDOs) and notices of violations (NOVs) against HHIC-Phil and some subcontractors.

However, Hanjin’s multi-layered corporate setup had so far frustrated Subic authorities in pinning down parties liable for injuries and deaths arising from the accidents, said SBMA Administrator Armand Arreza.

“In most cases, investigations have pinned the blame on subcontractors who have committed safety lapses. But although we revoked the permits of those who were found liable for violations, safety lapses have become a recurring problem,” he lamented.

“We’re now trying to unlock this tangle of corporations within corporations at the Hanjin shipyard so we’d know exactly who to go after,” Arreza said.

Aside from this, he said the SBMA will implement a stricter registration process for new subsidiaries or subcontractors of HHIC, and follow on previous recommendations and requirements for compliance by HHIC, as well as its subsidiaries and subcontractors.

The SBMA also intends to file legal action against HHIC-Phil and its subsidiaries or subcontractors whose health and safety deficiencies had resulted in the injury or death of workers, Arreza said.

As of now, the SBMA is preparing a database showing an interlocking web of directors and shareholders of several HHIC subsidiaries and subcontractors, said lawyer Ramon Agregado, who is SBMA senior deputy administrator for support services.

According to Agregado, HHIC’s business model is premised on the division of its construction and manufacturing processes into distinct businesses, with the operations of each division undertaken by an HHIC subsidiary. Each HHIC subsidiary, in turn, engages several subcontractors and sub-subcontractors to perform the work.

Agregado said the layering of corporations results “in the insulation of the mother company, HHIC-Phil Inc., from liability arising from employee injury or death, or from collection cases by unpaid suppliers.”

“This structure also circumvents the security of tenure of employees, as employees could be transferred from one subcontractor to another before reaching regular status,” he added.

Agregado also said they have evidence suggesting that these subcontractors and sub-subcontractors, most of whom provide services solely to HHIC-Phil, “are also owned indirectly by either HHIC or by HHIC officials.”

“This type of business model has proven to be disadvantageous to workers and makes it more expedient for HHIC to evade regulatory controls,” he concluded.

Last week, SBMA officials vowed to pursue the prosecution of all parties found liable in the death of another worker Filipino worker on January 23, two days before a Korean foreman became the latest — and the 19th — fatality at the Hanjin facility.

Arreza said he has ordered the suspension of the Korean subcontractor whose operations led to the January 23 accident, but added that the SBMA is also looking into the contingent liability of Hanjin, because it is the general contractor of the shipyard.

SBMA records indicated that aside from the CDOs and NOVs issued to at least 14 erring subcontractors since February 2007, it has issued a seven-day cease and desist order on all Hanjin construction activities in June 2008, after a 52-year old worker was pinned to death by a wall kicker formwork.

The following month, the SBMA formed an 11-man monitoring team that included a safety officer accredited by the Department of Labor and Employment (DOLE). The team conducted weekly monitoring activities at both the Hanjin shipyard and construction site.

In August last year, the SBMA also set up a satellite office at the Hanjin shipyard gate. This is staffed with personnel from the SBMA law enforcement department, labor center, and pass and ID department, who provided on-site labor assistance to workers, received worker complaints, and also prevented unauthorized access by employees of non-accredited subcontractors.

On December 16 last year, the SBMA also required Hanjin to establish an on-site Trauma Clinic to be staffed by medical and nursing personnel, and other technicians trained in emergency medicine, pre-hospital care, and basic and advanced cardiac life support. (SBMA Corporate Communications)

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Hanjin bus crashes barrier, 21 hurt

At least 21 workers at the Hanjin shipyard in Subic were hurt after their shuttle bus crashed a road barrier in Cawag, Subic, Zambales and fell down an embankment in the early morning rush to the worksite on Tuesday.

Miraculously, no one was killed in the accident — the first involving a shuttle bus ferrying workers to and from the shipyard, the Subic Bay Metropolitan Authority (SBMA) said.

Police said the injured workers were brought to the San Marcelino District Hospital in Zambales.

However, four workers who were seriously hurt were subsequently transferred to St. Jude Hospital in Olongapo City for surgery, police added.

They were identified as Darwin Samabella, Joan Jade Guinto, Wilmer Fontillas, and Jaime Legaspina, employed at the Hanjin shipbuilding facility.

All the 21 injured came from Subic town, where they were picked up by the WPH shuttle bus.

WPH, which was contracted by Hanjin to ferry workers to and from the shipyard, operates a fleet of shuttle buses that picked up workers from various locations. The buses take the Cawag road that connects to the Zambales highway at Castillejos town.

Members of the SBMA fire and rescue team who were sent to the accident site said the bus fell down a relatively gentle slope and toppled sideways at the bottom of the embankment. However, no one was pinned by the vehicle, they added.

Initial investigation showed that the mishap occurred at about 6:50 a.m., when the WPH bus lost control while traversing a zigzag road in the Cawag area.

Police said the bus, which was carrying about 55 passengers, was racing with two other buses when the accident happened.

The bus driver, identified as Jerico Liego, survived the accident but reportedly fled the site before rescuers arrived.

Police said they are now coordinating with operators of the bus company to trace Liego and bring him in for investigation.

He will be charged with reckless imprudence resulting to multiple physical injuries, police added. (SBMA Corporate Communications)


PHOTO: The wayward WPH shuttle bus after it was brought out of the crash site.

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SBMA Seaport posts 26.6% growth in 2008

Limping from the ban on the importation of used cars and the slowing global economy last year, the Subic seaport nevertheless finished 2008 with stellar performance as it surpassed target revenue collections by 21 percent and posted a 26.6 percent revenue growth over its 2007 record.

Retired Captain Perfecto Pascual, who heads the Seaport department of the Subic Bay Metropolitan Authority (SBMA), said actual collections by the Subic seaport amounted to P276.24 million versus the P228.21 target for 2008.

This was a record increase of 26.6 percent in seaport revenue compared to actual collections of P218.2 million in 2007, added Pascual.

Pascual said that 2008 could have been a disastrous year for the SBMA seaport, had not officials initiated fiscal reforms to override the effects of Executive Order (EO) No. 256 that banned the importation of used cars.

The Seaport department, he added, got off with a slow start, posting a 20 percent drop in revenues for the first quarter of 2008 compared to 2007.

"Historically, (the importations) brought in a significant income for Subic, but the ban consequently brought down ship calls and cargo. Then the global financial crisis hit us in the second half of the year, and this did not spare the shipping industry," Pascual related.

What saved the day for Subic, Pascual said, was the decision of the SBMA to modify its policy on vessel and cargo charges, including those levied on the Philippine Coastal Corp., whose exemption from paying said fees was cancelled by the SBMA in the fourth quarter of 2007.

This resulted in P3-million worth of additional revenue each month, he said..

Pascual added that the 2008 revenue upsurge was driven mainly by the updating of shipping fees being collected in the Port of Subic, and the April 2008 startup operation of the 300,000- TEU New Container Terminal (NCT-1), which rakes in some P4.3 million into the SBMA Seaport's coffers monthly.

He said the SBMA board also approved in April last year an increase in SBMA's share and cargo-handling fees, from 10 percent of the cargo handlers' gross income, to 15 percent.

This rate is still comparatively lower than those charged by other Philippine Ports Authority (PPA)-administered ports, Pascual said, pointing out that the Port of Manila collects 20 percent, while the Port of Cebu collects 15 percent and 22 percent for local and foreign cargoes, respectively.

However, Pascual said the economic slowdown that began last year left a 20 percent shortage on bulk/break-bulk cargoes as against 2007 records. Still, Hanjin Heavy Industries Inc.-Phil's continuous shipbuilding operations raised revenues for the importation of heavy equipment and steel products by 172 percent, he added.

According to the SBMA Seaport yearend report, total export and import transactions in Subic fell by 19.4 percent last year to a total of 29,730 from 36,451 in 2007.

Ship calls posted a modest 6.3 percent growth — 1,893 compared to 1,781 in 2007. Projection for 2009 is placed at 2,052, with total tonnage of 15 million.

Pascual said that because of the economic slowdown, Subic forecasts a smaller volume of containerized cargo this year, from a total of 29,370 TEUs last year to 28,551 TEUs.

In terms of non-containerized cargo, this year's forecast is 2.19 million metric tons, compared to the 2008 record of 1.87 million metric tons.

Despite the global economic downturn, the SBMA Seaport expects revenue of P316.3 million this year, compared to actual revenue collections of P276.24 million in 2008.

"We could turn this crisis into an opportunity for the Port of Subic," said Pascual, who noted that collections this January already amounted to P30 million, which is bigger than the record P29 million monthly collections made in July and August last year.

"The slowdown in the shipping industry, ironically, turns out good for the Port of Subic since shipping lines began to use Subic Bay as a place to lay by their vessels," Pascual explained.

As of last count, 22 vessels are laid up in Subic Bay to wait out the recession. The SBMA Seaport earns about P6 million monthly from these idle ships, he said. (SBMA Corporate Communications)


PHOTO: A cargo vessel unloads containers at Subic's New Container Terminal-1

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Move to convert Subic as ‘mother port’ lauded

The move to convert Subic Bay as the country’s transshipment hub gained further momentum after businessmen and economic experts proposed that it be developed into a “mother port” to make the Philippines more competitive in the Asia-Pacific region.

Officials of the Subic Bay Metropolitan Authority (SBMA), meanwhile, lauded the proposals, saying it reinforces the agency’s commitments to modernize the Subic sea port, which has posted a remarkable 26.6 percent growth last year despite the onset of recession.

“The picture of a modern, globally competitive and commercially viable Subic seaport gets clearer,” SBMA Administrator Armand Arreza said in reaction to the proposals.

“More and more people realize Subic’s potential in catalyzing further growth in the country’s maritime logistics industry, and that’s great news for the SBMA,” he said.

Arreza added that the SBMA has earmarked $215 million to modernize its port and gear up for a greater role as a logistics and marine services hub. The program included the construction of two container terminal with a total capacity of 600,000 TEUs, and the rehabilitation of several U.S. Navy-built piers that are being turned into specialized ports for passenger and cruise ships, as well as for loading and unloading grains, fertilizers, oil and petroleum products, and other bulk cargoes.

“This clamor to make Subic a mother port, hopefully, should hasten the government plans for Subic,” Arreza said.

Both the National Competitiveness Council (NCC) and the Philippine Chamber of Commerce and Industry (PCCI), the country’s biggest business group, have called for the development of Subic as a transshipment and logistics hub.

According to Meneleo Carlos, NCC Infrastructure Working Group champion, the NCC is now looking at the possibility of moving more cargo through Subic with the use of 50 to 80 twenty-foot equivalent unit (TEU) barges that will carry cargo from Batangas, Cavite, Manila, and Bataan.

He said the use of the Subic Bay Freeport as mother port will result in faster shipment, lower cost, and more profits and jobs.

Carlos added that Subic is closer to most major sea lanes, so it would be easy for mother ships used in transshipment to pass by Subic and pick up cargoes for direct delivery to destinations like Europe.

“Shipment will be faster,” he said, pointing out that cargoes from the country won’t have to be transshipped anymore through Hong Kong or Singapore.

Meanwhile, moving goods between manufacturing centers in the country through water transport could prove to be more economical, provided that adequate systems for handling roll-on, roll-off (RORO) vessels are provided, Carlos added.

The announcement by NCC dovetailed with a call by the Philippine Chamber of Commerce and Industry (PCCI) to develop a transshipment and logistics hub spanning the ports of Batangas and Subic, which is connected to the air transportation complex at the Clark Freeport by the Subic-Clark-Tarlac Expressway (SCTEx).

The PCCI said the proposed logistics center is needed to decongest cargo traffic in Manila ports, reduce the cost of doing business, and improve the competitiveness of the Philippines as a business destination.

At the same time, PCCI officials urged President Gloria Macapagal-Arroyo to expand roll-on, roll-off facilities in the country to reduce wharfage fees to trim transshipment costs for domestic and foreign-bound cargoes.

Similar cost-cutting measures have been endorsed by the NCC, which said that reduced port and shipping charges would make the Philippines more competitive globally. (SBMA Corporate Communications)

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SBMA police bones up on shooting skills

Practice makes perfect. And it deters criminals, too.

Security personnel in this free port now look forward to better shooting skills, thanks to a championship-level marksmanship competition launched recently by the Law Enforcement Department of the Subic Bay Metropolitan Authority (SBMA-LED).

The shooting contest, dubbed as the SBMA-LED General’s Cup, was launched on January 24 by retired Gen. Orlando Maddela, who now heads the security force in Subic. It will be held on a quarterly basis from now on, Maddela said.

A total of 108 officers from the different branches of the SBMA-LED joined the launch of the General’s Cup at the Zambales-Olongapo Pistol and Rifle Association (ZOFRA) shooting stable in Castillejos, Zambales.

For starters, the participants competed under the beginner’s category. Winners were determined based on “accuracy over time” point system.

Edu Grueso from the LED’s disaster management unit was declared champion after garnering 83.47 points. Second place went to Jeffrey Domingo of the LED’s administration section, who got 69.63 points; and the third was Ricardo Eligido, also from administration, with 66.83 points.

Completing the Top 10 shooters list were: Romeo Tolentino, port sentinel branch, with 53.79 points; Bong Grueso, special weapons and tactics, 47.71; Roderic Grueso, disaster management, 46.85; Jose Alquizar, patrol division, 45.83; Nomer Benitez, traffic, 45.08; Lourdesito Cabalo, special reaction, 44.46; and Jomar Ebardo, law enforcement academy, with 42.52 points.

The competition, Maddela said, follows rules of the International Practical Shooting Confederation (IPSC), and aims to develop the individual character of each SBMA-LED personnel.

Maddela has urged all SBMA-LED officers to continually practice and participate in this exercise to hone their skills in reacting to every possible armed threat.

“When the officer has an intimate knowledge of his gun and knows his capability of using it — you have an effective police officer in the streets,” Maddela said.

He added that police visibility in Subic, which will now be complemented by dead-strike shooting accuracy, will further disappoint unlawful elements from pulling their tricks here.

“Security is one of the SBMA’s greatest assets — it draws in investors,” stressed Maddela, who became an avid shooter since he joined the Philippine Practical Shooting Association in 1981.

Maddela, who founded the Aurora Practical Shooting Association (APSA) during his term as police commander in the Aurora province, said he saw that shooting competitions develop self-confidence, boosts camaraderie, and relaxes stressed law enforcers.

“This is hitting many birds with one stone, so wherever I was assigned, I set up gun clubs,” he said.

“Know your men, know your enemy, and you will not fear a hundred battles,” he said, quoting a line from Sun Tzu’s “Art of War”. (SBMA Corporate Communications)

PHOTO CAPTION:
A member of the SBMA police hones his shooting skills.

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Subic locators struggle to stay afloat, join job-shedding club

BUSINESS locators at the Subic free port, particularly those in the manufacturing sector, are now digging in—cutting down on manpower costs, retooling operations to boost productivity and undertaking management reviews—all to fend off effects of the global recession.

Their cost-cutting measures, however, have already resulted in significant job losses, with 530 workers already retrenched and 4,365 placed on forced leave as of January 25, according to reports from the Subic Bay Metropolitan Authority (SBMA).

The SBMA update was the latest in a now-daily tally of shutdowns, retrenchments and other cost-cutting measures, often painful to workers, as Philippine businesses start feeling the impact of a global slowdown. Particularly hit were two key planks of the economy: the exports sector, specifically electronics, and the millions of overseas Filipino workers (OFWs), whose remittances have shored up the country for decades.

The latest bad news in the last week came from Apex Mining in Mindanao, where 150 workers were retrenched; Panasonic, which is cutting 60 jobs in the Philippines as part of a job-slash program for Asia; Intel, which is closing down its Philippine plant in Cavite, laying off 1,800 people; and Texas Instruments, where nearly 400 workers lost their jobs.

On Wednesday, Labor Secretary Marianito Roque told dwIZ’s Karambola hosts that 18,000 workers had so far been laid off since December and nearly twice that number were affected by various forms of cost-cutting moves: reduced work week, reduced work hours and reduced operations.

At the Subic Free Port, industry sources said the continuing job displacement could affect almost half of the 14,500 workers now employed in the manufacturing sector, who make up close to 17 percent of Subic’s 87,500-strong workforce.

Nidec hard-hit

The most number of job casualties were from Nidec Subic Philippines, one of Subic’s consistent top 10 exporters in the last few years, which already laid off some 600 workers as early as November last year.

The firm, which supplies hard-disk drives and motors to clients like Toshiba, Fujitsu, Samsung and Hitachi, used to employ a total of 3,140 workers in three shifts, said company president Toshihiko Miyabe.

However, Nidec’s cumulative worldwide operations output—the firm also operates in an industrial park in Laguna—has declined from 18 million units in 2007 to about 16 or 17 million last year as demand fell, Miyabe said.

Like Nidec, other electronics firms are poised to let go of more workers in the next few months due to an expected 2.2-percent cutback in world electronic equipment production this year, said Ronnie Yambao, head of the SBMA Investment Processing Department.

Forced leave

Sanyo Denki Philippines Inc., which manufactures cooling fans for computers, ATM machines and power supply packs, previously hired 2,284 personnel who worked in three shifts at Subic.

Now 1,200 of its workers have been put on forced leave this month, after production fell from 1.8 million units in 2007 to about 1.2 million in 2008.

The firm’s president and CEO Toshio Shinohara also told the SBMA in December that layoffs are “imminent” for this company, which counts on customers like Intel, Dell and IBM.

Other electronics firms hurting

Another firm affected by recession is Philippine Inter Electronics Corp., which sells diode components to Sony, Toshiba, Nintendo and Panasonic. Yambao said that due to a 30-percent decline in customer demand, the Japanese manufacturer “will resort to reducing manpower by 10 percent.”

Even Wistron Infocomm, the giant Taiwanese computer maker which has consistently topped Subic’s exporters list, is set to retrench 420 workers in February.

In face of massive job cuts in the free port, the SBMA announced a rescue plan, where displaced workers would be “reintegrated” into the economy through alternative livelihood programs.

This will provide workers with safety nets that would include a networking scheme and access to training, livelihood programs and related assistance.

Seipi not shocked

AS reports of closures and layoffs in electronics and semiconductors companies are filed daily, the head of the industry group remained unfazed, saying the job losses are “normal and should be expected” because of the global downturn.

“If it is happening in the United States, Japan, Europe and China, then you should not be surprised if it also happens here. What is happening in the country is not any worse than anywhere else,” said Arthur Tan, director of the Semiconductor and Electronics Industries of the Philippines Inc.

An official of the Chamber of Mines of the Philippines said the mining firms that have so far informed them of downsizing in operation and manpower are Atlas, Oceana and Platinum Group Metals Corp.

The official was surprised that Apex Mining was also affected because gold, the company’s output, is still commanding high prices in the world market at this time.

The BusinessMirror tried to get information from Panasonic Philippines but the company’s Filipino officials said they are “not in a position to say anything.”

Bloomberg, on the other hand, reported that Panasonic Philippine dry-cell batteries factory will lay off 60 workers. Tokyo-based spokesman Akira Kadota said the plant will be shut in March.

Layoff at Apex

Some 150 rank-and-file employees and managers were displaced by the manpower reduction program implemented by listed Apex Mining Co. Inc. at its Maco Mining Project in Compostela Valley, Mindanao.

In a statement to the stock exchange, Apex said the program was needed to “right-size its current personnel to sustain the economic viability of the mine project prelude to a full-swing productive operations.”

Majority of the expatriates have also been released, with only two remaining at the operation to finish their specialized technical work until they are replaced by their Filipino understudies.

OWWA aiding retrenched OFWs

Carmelita Dimzon, Overseas Workers Welfare Administration (OWWA) head, reported that as of January 18, the recorded number of retrenched OFWs back in the country by the OWWA was 4,042; and Dimzon projects this will run to 5,000 by the end of January.

OWWA, she said, will be profiling and mapping the skills of the retrenched workers, in preparation for a microbusiness training and loan package to ease the unemployment status for the thousands losing their overseas jobs.

The agency has signed the memorandum of agreement on the Filipino Expatriate livelihood fund, whereby P100 million from the P11-billion OWWA fund will be committed for the purpose. Loans of as much as P50,000 are payable in 24 months at 5-percent interest.

The OWWA regional units have been given marching orders and will be ready to implement or disburse funds soon, Dimzon said.

The Technical Education and Skills Development Authority (Tesda) is also offering training in preparation for opportunities in critical emerging industries, according to Marilyn Necessito of Tesda-Cordillera. There is a focus on training for call centers, which according to Dimzon is still a viable work opportunity.

Dimzon also said the Department of Trade and Industry has a program for those retrenched workers who want to go into business. ( Henry Empeño w/ M. de Leon, H. Reyes, M. Guieb, Business Mirror)

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SBMA readies workers' rescue plan to mitigate recession effects

While the Subic Bay Metropolitan Authority (SBMA) considers long-term strategies to mitigate the effects of the economic slowdown that primarily hit the manufacturing sector here, the agency is now preparing a re-integration program to provide safety nets to workers who might be displaced as a result of the global recession.

SBMA Chairman Feliciano Salonga said the Subic authority aims to provide laid-off workers with "lifesaver opportunities" that would include a network and access to training, livelihood programs and related assistance.

Among the training areas eyed for laid-off workers are agro-industry, small-scale enterprise, hospitality service, and short technical courses.

"We're doing this to make sure that the free port's human resources are not frozen while waiting for markets to bounce back," Salonga said.

"Filipinos are born survivors, but they still need assistance. And the SBMA will not hesitate to provide opportunities for our people, who have helped make Subic what it is today," Salonga added.

Salonga said the SBMA has begun a skills-set inventory of affected workers as early as last year when the effects of the credit crunch in the United States began to be felt globally.

Initial data from the study indicated that that most of the bigger electronics manufacturing firms here that supply electronic components to major brands like Sony, Toshiba, Panasonic, IBM, Dell, Intel and Samsung, now expect significant cuts in market demand.

In turn, these companies could be expected to cut costs and reduce manpower, Salonga said.

Salonga added the Subic workers inventory will serve as basis for the development of training programs that the SBMA will implement in partnership with Technology Research Center (TRC), Department of Trade and Industry (DTI), Technical Skills and Development Authority (TESDA), and the Philippine Center for Entrepreneurship (PCE), which has successfully trained entrepreneurs under its "Go Negosyo" program.

He also said the SBMA is now raising a P1-million seed fund to jumpstart the re-integration program, including the setting up of an oversight committee, and the establishment of a "one-stop action center" at the Subic Bay Arts Center (SuBAC).

In particular, Salonga places much hope in the agro-industry and tourism sectors to be able to absorb most of the affected workers.

"We will be focusing on existing job markets, but we will also try to create new markets after studies show that they are feasible," said Salonga.

The new markets with potential in Subic include food processing, handicraft and novelty items, as well as spa services, he added.

Salonga also expressed hope that the Subic economy will survive the economic downturn.

"This recession is a cyclic phenomenon," he said. "Eventually, the global market will go up so the SBMA remains aggressive in keeping and boosting the competitive advantage of doing business in the Subic Bay Freeport." (SBMA Corporate Communications)

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Subic exports hit $977.84-M in 2008

Despite the onset of global recession, manufacturing companies in this free port unexpectedly turned out exports worth $977.84 million last year, the biggest export total for Subic in the last six years.

Subic’s 2008 export volume represented a .63 percent increase over the $971.73 million export value recorded in 2007.

The slim gain in export production was attributed by the Subic Bay Metropolitan Authority (SBMA) to the free port’s electronics and maritime industries, which had held on to previous orders to deliver positive export figures last year.

“Our 10 biggest manufacturers provided the bulk of Subic’s exports in 2008 — a total of $849 million, which is roughly 87 percent,” said SBMA Administrator Armand Arreza.

“I believe this is an achievement in itself,” Arreza added. “The fact that we did not turn out a negative figure last year despite the recession speaks so much of the resiliency of our business locators here.”

Arreza said two Subic exporters, the Taiwanese computer giant Wistron Infocom (Phils) Corp. and Hong Kong’s import-export firm Lets Do Mobile Philippines, contributed more than half of Subic’s $977.84 export total last year, with export production of $274.88 million and $234.5 million, respectively.

Two Japanese manufacturers, meanwhile, occupied the third and fourth slots among Subic’s top exporters: electrical machinery and appliance maker Sanyo Denki with $78.08 million, and ATM and cash register manufacturer Hitachi Terminals Mechatronics Phils. with $76.37million.

Korean shipbuilder Hanjin Heavy Industries Co.-Philippines (HHIC-Phil), meanwhile, posted $61.74 million worth of exports to make it as Subic’s fifth biggest exporter last year.

The rest in the top 10 exporters list are: Japanese wood products manufacturer Juken Sangyo (Phils.) Corp., with $44.17 million worth of exports; Taiwanese lock maker Tong Lung Metal Industry, with $27.94 million; Taiwanese aircon manufacturer Hitachi, with $20.31 million; Japanese precision electronics motors producer Nidec Subic Phils. Corp., with $17.78 million; and Japanese electronics sensor maker Nicera Phils. Inc., with $13.26 million.

Last year’s export production was the biggest so far in the last six years, following a continuous slide since 2003 that culminated in a $691.14 million export value in 2006.

Subic exports began picking up in 2007 with a total of $971.73 million, followed by $977.84 million last year.

Importations by Subic Freeport companies, meanwhile, reached a total of $2.27 billion in 2008, with the bulk consigned also to some of the biggest exporters in Subic.

However, SBMA records as of October 2008 indicated that the biggest importer last year was PTT Philippines, which traded in petroleum products, with a total freight on board value of $465.25 million.

Next were HHIC-Phil, with $389.32 million; Lets Do Mobile, with $214.89 million; Wistron Infocom, with $187.84 million; and Korean firm Hanil Engineering and Construction Co., Ltd., with $174.32 million.

Another oil and petroleum products trader, Tri-Solid Movers Services, Inc., was the sixth biggest importer last year, with $65.08 million worth of imports.

This was followed by Sanyo Denki, with $38.42 million; Juken Sangyo, with $29.97 million; Hitachi Terminals, with $28.26 million; and Nidec Subic, with $26.86 million. (SBMA Corporate Communications)

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Senate probes Hanjin Subic deaths on Feb.4

The Senate committee on labor, employment and human resource development will begin on Feb. 4 the public hearings on the string of deaths of Filipino workers at a Korean-owned shipyard in Subic, Zambales, since 2006.

A memorandum by Labor Assistant Secretary Reydeluz Conferido said three officials of the Department of Labor and Employment are attending the first hearing called through Senate Resolution No. 807 authored by Sen. Pia Cayetano.

Dulce Estrella Gust, executive director of the Occupational Safety and Health Center; Ma. Brenda Villafuerte, director of the Bureau of Working Conditions; and Nathaniel Lacambra, DOLE director in Central Luzon, have been asked to shed light on work safety issues at the shipyard of the Hanjin Heavy Industries and Construction Philippines Inc., Conferido’s memo showed.

The public hearing indicated that Cayetano had convinced the other senators to proceed with it despite a request by the Korean Ambassador to the Philippines not to hold one due to its “negative repercussions” on Korean investments.

There have been at least 19 work- or accident-related deaths on the site. Except for one, all the victims were Filipinos.The latest fatality, Korean foreman Choi Dong Baek, 51, was run over by a forklift operated by a Filipino worker identified as
Menti Dacanay.

Lacambra said he was ready to attend the hearing.But Hanjin, he said, had not allowed access to DOLE inspectors in the early stage of the project. (Tonette Orejas, Inquirer Central Luzon Desk)

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SBMA cites 152,700 trees planted under Subic refo program

Subic Bay Metropolitan Authority (SBMA) officials revealed that a continuing reforestation program by the agency has resulted in the massive replanting of trees in about 140 hectares of grasslands and barren slopes in this free port.

Calling the reforestation program "environmentalism in action, not in words", SBMA Chairman Feliciano Salonga said that concerted efforts by various stakeholders Subic has yielded a total of 152,713 new trees in forested areas here under the SBMA reforestation program.

"Laid out in a single row and 10 meters apart, these new trees would cover more than 1,500 kilometers, or about 16 times the whole length of the Subic-Clark-Tarlac Expressway, the longest tollway in the country," he said.

"This is one concrete proof of our environmental commitment here in Subic," he added.

Salonga said that the SBMA reforestation program has been a continuing activity since 1996, under the first SBMA chairman, now Sen. Richard Gordon.

"This has become a legacy project since then, with the SBMA, Subic business locators and civic groups from nearby communities doing their share in replanting grasslands and barren slopes in Subic," Salonga said.

The various groups had actually planted a total of 261,985 trees under the reforestation program. However, some trees died just before they reach three years — the minimum period before seedlings could survive without periodic care, Salonga said.

But even with a survival rate of just more than 58 percent, the 152,713 total number of surviving trees meant that close to 17,000 new trees become part of Subic's new growth forests each year, Salonga added.

The tree count under the reforestation program did not include trees planted by SBMA employees, students and business locators under the agency's annual tree-planting projects that are undertaken along major roads in Subic.

These would account for "another couple of thousands that had survived," Salonga said.

According to figures from the SBMA Ecology Center's Environmental Protection and Community Development Division (EPCDD), an average of more than 29,000 trees have been planted in Subic in the past nine years that reforestation projects were undertaken

The species planted included hardwood like narra and mahogany, as well as fruit trees like mango, cashew, avocado and jackfruit, and ornamentals like agoho and fire tree.

Most of these, Salonga said, have been planted by the Pastolan Forest Conservation Group (PFCG), which is composed of Aeta tribesmen from Subic's upland community of Pastolan.

"This group has become our spearhead in the reforestation effort in the Freeport zone," Salonga said. "After orienting them about the need to conserve forests, both to protect the environment and to create livelihood opportunities, our Aeta brothers have become indispensable as forest protectors."

EPCDD data showed that the Pastolan group had so far planted 102,100 seedlings since its creation in 2005. Of these, a total of 96,152 survived, giving the group's efforts a high survival rate of 94 percent.

Meanwhile, business locators or contractors with the most number of trees planted here included the First Philippine Infrastructure Development Corp., with a total of 15,998 surviving trees it had planted, or an 80 percent survival rate; Toyo Corp., with 13,332, also 80 percent survival; Shell Philippines, with 8,888; and construction firm A.M. Oreta, with a total of 6,888 surviving trees.

SBMA's reforestation efforts also received a big boost with the successful implementation of the "Adopt-a-Forest" program, which had so far yielded a total of 4,345 trees since it was initiated by the Ecology Center in 2005.

This program, which boasts a 100 percent survival rate, tapped Subic companies and various community groups to plant trees and maintain them for three years before turning them over to the SBMA.

Last December, Japanese computer parts maker Nidec Subic Phils., turned over its "adopted" mini forest to the SBMA, the first among the program participants to do so. Twelve other groups are scheduled to transfer their reforestation areas to the SBMA this year.

Salonga, who received Nidec's reforestation project on behalf of the SBMA, said the SBMA invites more business locators and civic groups to join the program.

"This is our brand of environmentalism here in Subic — action, not just words. I hope that more would join us in out effort to leave a green legacy in Subic," he added. (SBMA Corporate Communications)


PHOTO CAPTION: New-growth forests now thrive in most of the low-lying slopes of Mt. Sta. Rita in the Subic Bay Freeport under an SBMA reforestation program that has already covered 140 hectares. Photo shows a mini-forest of narra and some fruit trees jointly planted by the SBMA Public Relations Office and the Subic Bay Press Corps.

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Korean national dies in Hanjin shipyard accident

A Korean national was killed in an accident at the shipbuilding facility of Hanjin Heavy Industries Co.-Philippines (HHIC-Phil) early on Sunday, after he was hit by a forklift while playing with a basketball during the midnight break time.

Initial information from the Subic Bay Metropolitan Authority (SBMA) identified the fatality as Choi Dong Baek, 51, who worked as a foreman for Greenbeach Power Corp., a subcontractor of HHIC-Phil.

According to SBMA investigators, Choi was run over by a forklift operated by a Filipino employee, who was identified as Menti Dacanay, a rigger working for Freeport I-Tech Corp., also a subcontracting firm.

The incident happened at about 12:50 a.m. at the facility's Assembly Shop C in an open area being used as a basketball court by workers during break time.

The victim was brought to a hospital in San Marcelino, Zambales, but he expired at about 1:30 a.m.

Investigators said Choi was playing with the ball, kicking it about like a soccer ball, when it rolled onto the path of the moving forklift.

The victim was trying to retrieve the ball, when he was hit, dragged and run-over by the forklift, SBMA investigators said.

Dacanay, who used the forklift to move away the basketball stand, was not licensed to drive the equipment, it was noted.

Pyeong Jong Yu, deputy managing director of HHIC-Phil, said Dacanay drove the equipment "without getting any instruction from either Korean or Filipino foremen."

"We are still trying to verify how he got the key of the unit, since the key should have been kept in the toolbox container," Yu added.

Choi's death was the 19th fatal accident so far to occur at the Hanjin shipbuilding facility in Subic's Redondo Peninsula, which had claimed its 18th Filipino victim only two days earlier.

Most of the accidents, or a total of 15, were construction-related, said SBMA Administrator Armand Arreza.

Arreza immediately ordered a suspension of work at Assembly Shop C and told SBMA investigators to look at the circumstances surrounding the mishap, including the lighting conditions at the site.

Last Friday, Arreza also ordered the suspension of a Hanjin subcontractor, the Great Steel Construction, whose operations led to the fatal accident involving Raldon del Rosario, a 19-year old worker from Kalinga Apayao.

Arreza said earlier that the Subic authority will pursue the prosecution of all parties found liable in last Friday's accident, when an 800-kilogram curtain door assembly toppled during testing.

Del Rosario's co-worker, identified as Camalao Bochei, 24, and also from Kalinga Apayao, suffered leg injury in the same accident.

SBMA investigators said Del Rosario and Bochei were just passing by the assembly shop where Great Steel workers were installing and testing a rain curtain, when the chain holding the assembly reportedly broke, causing the metal base support to be detached.

"We're definitely taking action on this, and heads will roll," SBMA Administrator Armand Arreza said on Friday as he announced the suspension of Great Steel Construction during a press conference held just a few hours after the accident.

"We will be firm, but fair," he vowed.

Arreza added that the SBMA is "also looking into the contingent liability of Hanjin, because it is the general contractor of the shipyard."

While emphasizing that Del Rosario's death had nothing to do with shipbuilding activity, Arreza said that this does not necessarily clear Hanjin Heavy Industries Co.-Philippines (HHIC-Phil), which operates the $1.7-billion shipyard here.

"We will push through with prosecuting all those who will be found liable," Arreza said.

He also said that the SBMA has recently issued two notices of violation to Hanjin after the SBMA noted in a safety inspection on January 6 that some workers in the shipyard did not have personal protective equipment (PPE), and that some work areas were dimly-lit and not well-ventilated.

HHIC's Yu, meanwhile, said that Great Steel Construction was to blame for the accident on Friday.

"As it is very clear that the incident was caused by either improper installation of chain block, or mechanical failure of some of its components, and no signage was installed by them thereon to prevent incidental use of it before completion of its installation, we will hold them (Great Steel Construction) responsible for the accident," Yu said. (SBMA Corporate Communications)

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Senator urges probe into Hanjin accidents in Subic Bay Freeport

Sen. Pilar Juliana Cayetano on Friday urged the Senate to immediately look into the series of accidents at the construction sites of South Korean shipbuilder Hanjin Heavy Industries Corp. at the Subic Bay Freeport.

Cayetano made the request after getting hold of a letter of Korean Ambassador Choi Joong Kyung to Senate President Juan Ponce Enrile trying to dissuade the Senate from investigating the fatal accidents involving Hanjin.

Cayetano said the ambassador’s letter, dated Dec. 23, 2008, highlighted the virtues of Korean investments in the country despite the global economic slowdown.

But in another part of the letter, the ambassador mentioned that the possible Senate inquiry on the accidents at the Hanjin shipyard could have a negative effect not only on the company but on the Philippines as well.

"The policy implication of all its present actions have deep and far reaching effects within and beyond the boundaries of the Philippines, " read the letter, copies of which were distributed to reporters.

Latest victim

A total of 18 deaths at sprawling Hanjin shipbuilding facility have been reported, the latest of which happened on Friday at 8:30 a.m.

The Subic Bay Metropolitan Authority (SBMA) identified the latest fatality as Raldon del Rosario, 19, from Kalinga province, an employee of Redondo I-Tech Corp. He died of massive head injuries. Another worker, Camalao Bochie, 24, also from Kalinga, suffered leg injuries. Both victims were taken to St. Jude Hospital in Olongapo City, where Del Rosario was declared dead on arrival.

Initial reports released by the SBMA said the victims were pinned down by the metal base of a newly installed manual canvass door that fell at one of the assembly facilities of Hanjin.

Workers of Great Steel Con, a subcontractor of Hanjin, were testing the manual canvass door at around 8:30 a.m. when the accident happened, the SBMA said.

Last year, government regulators ordered Hanjin to stop its operations in its one of its assembly shops after an 8-ton girder assembly being lifted by a crane fatally struck a worker at the back of his head.

Work, however, resumed as the company assured that all safety measures were being undertaken.

Repercussions

In his letter, the Korean ambassador warned that Hanjin may find it difficult to secure overseas financing in case there would be any shadow cast on its credibility as a result of the investigation.

He said overseas competitors of Hanjin might also feel relieved not to follow Hanjin's pioneering into the Philippines.

Competitors might also find an opportunity in the company's misfortune and seize the chance to eliminate it.

Cayetano asked why the Korean ambassador would stop the investigation when "there is nothing to hide."

"The normal reaction would be telling the investigating body to go ahead with the probe and use the forum to air its side," Cayetano told reporters.

Regrettable, misplaced

She said she finds the ambassador's letter as both regrettable and misplaced. "Are we now to be told by a representative of a foreign country what we should and should not inquire into as a national lawmaking body, and even be threatened by 'deep and far reaching effects within and beyond the boundaries of the Philippines'?" Cayetano said.

"Is it not our duty, as lawmakers of the land, to look into violations and put in place measures to exact compliance?" She said she was not against the foreign investment or anything against the investments of Korean companies, adding that she was personally supportive of foreign investments that give the economy the necessary stimulus.

"Indeed, the government should create an atmosphere that encourages business and investments. But at the same time, laws aimed at protecting our people and our natural resources must be strictly complied with by all, whether Filipino or foreign investors," Cayetano said.

She further said the Senate should immediately investigate the construction activities at the project site before another Hanjin accident takes place.

"Let us not be dictated upon by the amount of investments by foreigners in the exercise of our official functions. We must stand up for our people and for our own laws. Let us remain true to our mandate as the Legislature, " Cayetano said. (Amita Legaspi, GMANews.TV)

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