Korean student-volunteers bring hope to former mining village in Zambales

SAN MARCELINO, Zambales – After two devastating events that destroyed their properties, hopes and dreams, the former mining community of Pili in the remote village of Buhawen here is now eyeing a better future.

Recently, student volunteers from the Soongsil University in Seoul, South Korea returned to the village to continue their annual outreach program that has thus far brought villagers their first computers, a new day care center, and their first lessons in information technology.

This year, the Soongsil volunteers helped the community in building a better road to Pili.

“This is the fourth time since 2006 that the Korean volunteers have come to help us,” said Buhawen barangay chairman Edgardo Dueñas, as villagers honored this year’s batch of 33 volunteers in a simple program here late last month.

“Every time they arrive in Buhawen, we give them a warm welcome,” Dueñas said. “We’d like to show them how much we appreciate their assistance and their concern for us.”

Out of the Ashes

Any form of assistance is a cherished commodity nowadays for the people of Pili, who suffered a shattering reversal of fortune when the nearby Mt. Pinatubo erupted in 1992.

Pili used to be the golden village of Zambales after Benguet Corp., one of the country’s biggest mining firms, opened the Dizon Copper-Gold Operation (DCO) in this town in the 70s.

According to Benguet Corp., DCO was one of the most successfully mined ore bodies in the Philippines. In the 17 years that the firm operated DCO, some 750 million pounds of copper, 3 million ounces of silver and almost 2 million ounces of gold were produced in the area.

At its heyday, DCO boasted of one of the biggest mill tailings dam in the Far East, as well as a 900-unit township for its employees. Most of the folks of Pili, virtually awash with cash, had the latest in home appliances — televisions, stereo sets, and refrigerators.

However, the prosperous days for both the mining firm and the residents-miners abruptly ended in June 1991 when Mt. Pinatubo spewed great volumes of lahar and sulfuric ash into Pili and other areas around the volcano.
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Then two years later, Benguet implemented a phase-out program for the Dizon operation. In late 1997, the company turned over the property to Dizon Copper-Silver Mines Inc. (DCSMI), the owner of the claim.
Hope from Afar

The closure further devastated the mining folks of Pili, who had lost most of what they owned to the fury of Pinatubo.

“We did everything just to make ends meet,” Dueñas now recalled.

He said formers DCO workers ventured into gold panning, while Ayta villagers went back to upland farming. Others tried their luck on little businesses in the town market. And because of their remote location, reconstruction efforts by the government were slow in coming.

Then one day in 2006, Dueñas said, another ray of hope visited their village when a dusty jeepney brought in Rev. Pastor David Bang and his first batch of student-volunteers from Soongsil.

The first time they arrived in Pili, the volunteers obviously had no idea how they could help the community, considering the lamentable condition of the village from the ravages of the eruption and the subsequent lahar flows.

Yet villagers said the visitors showed a strong determination to help out and rebuild Pili in whatever way they can.

The first two years saw the Korean volunteers repairing classrooms and other community facilities like the day care center. Then last year, they constructed the computer room that they equipped this year with 10 computer sets. Then volunteers began conducting classes on computer operation and basic information technology.

“Now we have our own IT center that we call the Soongsil University Computer Room,” said Evangelina Yap, the principal of Buhawen High School.

“We have also included the Korean martial arts taekwondo in our curriculum to teach our students not only to defend them selves, but to instill among them the kind of discipline that we see among our Korean visitors here,” Yap added.

Two-Way Learning Rev. Pastor David Bang, who coordinates the Soongsil volunteer program, explained that the student-volunteers aim to assist communities and help promote understanding between cultures.

He added that the assistance is freely given “just as we have it free from the Lord.”

SUIV program coordinator Jimmy King, meanwhile, noted three reasons why the Soongsil volunteers kept going back to the remote village of Pili.

“When I came here the very first time, I noticed that the people around are very happy. And despite that their village is far away from the town, they looked so satisfied” he said.

King said the determination of the residents to adapt to their condition and situation made the Korean students decide to help.

Koreans could learn a lot from the Pili villagers, too, King added.

“I would tell my students how these people here stay happy in spite of their situation,” King said. “I would like to bring to Soongsil University this extraordinary happiness that I have seen among the people of Pili.” (SBMA Corporate Communications)

PHOTO: Korean Volunteers bond with local schoolchildren at the Pili community in Buhawen, San Marcelino, Zambales.

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DOLE seeks ‘win-win’ solution to Hanjin problem

The government and other concerned sectors should be able to come up with a “practical solution” to address safety problems at the Hanjin shipbuilding facility while guaranteeing the jobs of about 18,000 shipyard workers, a top labor official stressed recently.

Nathaniel Lacambra, director of the Department of Labor and Employment (DOLE) in Central Luzon, said that while the Hanjin Heavy Industries Co.-Philippines (HHIC-Phil) may be required to adhere strictly to safety standards, shutting down the facility would not be a good idea.

“Our laws allow the issuance of cease and desist order (CDO) to Hanjin. But to shut down the entire plant, I think, is not a win-win solution,” Lacambra said.

“If we shut down the entire plant just because one unit or one sector has violated labor standards, then we will be starving 15 to 17 thousand Filipinos,” he added.

Lacambra, who accompanied Senator Jose “Jinggoy” Estrada in inspecting the Hanjin facility last Thursday, was reacting to suggestions that work at the shipyard be suspended after 19 deaths had been recorded there since 2007.

Estrada himself, who heads the Senate labor committee, had proposed that Hanjin halt its operations here until it has complied with standards to ensure workers’ safety.

However, Lacambra said that a “practical” solution should be worked at for the benefit of workers.

One way to do this, he said, is to require HHIC-Phil to apply for variation orders to improve health and safety conditions in the shipyard and avoid being penalized.

At the same time, the government will require Hanjin to comply with the DOLE’s occupational safety standards (DOSS), he added.

As an example, Lacambra cited Hanjin’s request for a variation order from the Bureau of Working Conditions (BWC) regarding the 600-ton capacity “goliath” cranes that Hanjin uses in Subic.

Lacambra said that because no professional testing organization in the country could test the cranes, the variation order allowed that testing be made by Hanjin suppliers.

“If they could do that with the cranes, then probably they could do the same with the hospital or the medical facility requirements. That could be the win-win solution,” said Lacambra.

The labor official also pointed out that under the DOSS, firms are required to provide one doctor for every 100 workers they employ. In this case, Lacambra added, Hanjin which has about 18,000 workers should have from 150 to 200 doctors, who are to be assisted by full time nurses, dentists and first aid workers.

As a result, “we might be building a hospital here that is bigger than the (Philippine) General Hospital,” Lacambra said.

“So, we should be looking for the practical aspect and the practical side of it,” he added.

Meanwhile, Estrada said during last Thursday’s inspection that he gave Hanjin a poor rating for its poor implementation of occupational health and safety regulations.

“On a scale of 1 to 10, I am giving them a rate of 5 or 6,” Estrada said. “As you have seen there are some workers without safety helmets, and there are others wearing worn-out shoes.”

“Then there is this serious allegation from workers that they have to finish there work at all cost because they have a deadline to beat, even if it means more accidents. That is not fair on the part of the workers,” he added.

Estrada also noted the lack of regular medical personnel in the area, especially after 5:00 p.m., so that injured workers had to be brought to a hospital in Olongapo City which is about 20 kilometers away.

Estrada reiterated that he would like officials of Hanjin to answer more safety concerns at the shipyard safety when the Senate probe resumes on Wednesday.

Still, Estrada added that he will await recommendations from DOLE officials before taking actions on the Hanjin safety issues. (30)

PHOTO:
Hanjin director Pyeong Jong Yu (left) answers questions from Senator “Jinggoy” Estrada and DOLE Region 3 director Nathaniel Lacambra during an inspection on Thursday. The Senate labor committee headed by Estrada is now investigating unsafe conditions at the shipyard, where 19 workers had died since 2007.

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Sabal, Bayliss win Milo Marathon’s Subic elimination round

Former Philippine marathon king Cresenciano Sabal proved again that he is still capable of ruling the field as he bested 6,000 foreign and local runners in the regional elimination leg of the 33rd National Milo Marathon held here on Sunday.

The 30-year old Sabal posted a time of 1 hour, 9 minutes and 42 seconds to win the 21-kilometer race that also attracted world-class foreign triathletes.

“A lot of self-discipline and preparation went into my winning the gold medal today,” Sabal said after the race.

“It pays a lot if you prepare hard and persevere,” said the Army officer, who first earned his Milo Marathon title in 2005.

Sharing Sabal’s triumph was veteran triathlete Bella Bayliss of Great Britain who posted a time of 1:19:39 to win the gold in the women’s division.

Other winners in the Subic elimination race were: Bernardo Desamito Jr. (Phils.), with a time of 1:10:47 to bag the second place in the men’s division; James Cunnama (South Africa), 1:11:19, third; and Crifrankreadel Indapa, 1:12:50, fourth place.

In the women’s division, the winners were: Erika Csdmar (Hungary), 1:23:13, second place; Angel Naeth (Australia), 1:27:14, third; and Monica Torres (Philippines), 1:27:28, fourth place.

The winners will again try to outrun other competitors in the national finals of the Milo Marathon in Metro Manila on October 4.

Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga, who flagged off the marathon participants on Sunday, said that the Milo Marathon is just one of the many sports events regularly held in Subic Bay.

“Subic Bay is actually not only the best tourist destination in the country, but it is also a favorite place of athletes for their training,” Salonga said.

He added that organizers of local and international sports events are choosing Subic more than any other place in the country because of its superb environment and world-class facilities.

“Subic is actually a sports haven now and soon will be the region’s sports center,” he said.

Meanwhile, Rolen Paulino, the Milo sports director for the Subic Bay-Olongapo area, said that most of the winners in major races now were foreigners who have trained in Subic.

“That I would like to emphasize, puro foreigners ang nanalo and all of them have been training in Subic,” Paulino said.

This only proves that Subic is already an international sports center, Paulino added.

According to race records, of the top nine top finishers in the female division, five are foreigners who have trained in Subic under Coach Melvin Fausto. These include Bayliss, Csdmar, Naeth, Maki Nishiuchi of Japan (6th), and Lucie Zelencova, who placed eighth.

In the men’s division, of the top 10 runners, four were foreigners, namely: Cunnama, Indapa, Stephen Bayliss of Great Britain (7th), and Hiroyuki Nishiuchi of Japan, who placed ninth in the race. (SBMA Corporate Communications)

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Gordon remembers how FedEx was won

Dozens of workers showed up here before dawn Friday to bid goodbye to one of the last Federal Express (FedEx) planes to fly out of Subic.

Senator Richard Gordon, who signed up the US courier giant to set up its Asia-Pacific hub in Subic, was also here Friday to wave goodbye to FedEx for the last time.

“I came here when I heard they were leaving. I said I had to be here. I was here at the very beginning,” he told reporters.

Gordon, the first Subic Bay Metropolitan Authority (SBMA) chair, said that after he signed up FedEx to set up its hub here, DHL and UPS followed suit.

Surrounded by FedEx employees as the planes were taking off, Gordon said: “I remember
meeting one of their executives, Larry Hillbloom, who was quite a character. I was in a meeting with a senator at the time. When I went to the VIP room to meet them, there was a guy in a suit and another guy in jeans, T-shirt and dark glasses. I shook hands with the man in the suit who said, ‘I am not Larry Hillbloom. He’s my boss.’”

With a fond farewell, the government stands to lose P150 million a year after FedEx completes the transfer of its Asia-Pacific hub from the state-owned Subic Bay International Airport (SBIA) to the Baiyun International Airport in Guangzhou, China, this April.

FedEx pays P150 million annually in landing fees and warehousing to the SBMA, according to Armand Arreza, SBMA administrator.

Winding down

The US courier giant on Friday began winding down its Asian hub in the Philippines, shedding 800 staff as it starts full operation of a new regional facility in China, Arreza said.

The closure of FedEx’s operation comes in the wake of an announcement by Intel Corp. last month that it will let go 1,800 workers later this year, when the company shuts down its 35-year-old operation in the Philippines amid waning global demand for computers.

Arreza said the decision to shift the hub to China was made in 2004 and was based on “market reality” — the large cargo volume in China — not on Subic, being unable to meet the requirements of FedEx or the current global slump.

“The move has nothing to do with the financial crisis,” he said. “The volume and market conditions favored China because the volume in China dwarfed those in Southeast Asia, and China has opened the domestic market to FedEx.”

Business decision

Arreza said FedEx preterminated its 2010 contract to April this year, with options
to extend the use of the SBIA on a monthly basis as a back-up plan for its China project.The company will, for now, keep a skeleton operation in Subic.

“We understand that FedEx had to make this business decision,” he said. “Even if the economy is doing well … it’s never a good time if a company as big as FedEx [leaves]. We are sorry to see them go.”

FedEx officials were not immediately available for comment.

Largest tenant since 1995

In 1994, the SBMA obtained a $60-million loan from the World Bank to develop Cubi Point into the SBIA to entice the world’s largest freight-handling firm and attract more cargo and passenger airlines to operate from Subic.

FedEx has been the main locator at the SBIA since April 1995, serving 21 Asian cities.Arreza said the government tried to convince its largest tenant at the SBIA to stay.

SBMA Chair Feliciano Salonga and Arreza went to FedEx’s headquarters in Hong Kong to ask the company’s top executives to reconsider their plan.Trade Secretary Peter Favila also tried to convince FedEx to remain in Subic.

Generous separation pay

Arreza said FedEx would make intermittent flights at the SBIA until April or up to the extension period.

As it is, Subic is on standby, he said. He added that FedEx has not given an official closing date for its Subic operations. “We’re open to their return. We’re giving them the flexibility to extend.”

Arreza said about 800 workers of FedEx and its subcontractors will be affected. He added that the highly skilled workers could easily find jobs elsewhere in the economic zone.

He said the courier company facilitated job placements for former employees and gave “generous” separation pay and bonuses. (Robert Gonzaga & Tonette Orejas, Philippine Daily Inquirer)

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FedEx to maintain standby operations in Subic until April

The Subic Bay Metropolitan Authority (SBMA) said Friday that Federal Express will still have a maintenance component here and will be on standby until April this year.

In a press conference, SBMA administrator Armand Arreza clarified that Thursday night's operations were "the beginning of the transition for the move to China."

"Last night was the last full operations. They will still have standby operations up to the end of April. They have been testing their hub at Guangzhou for the last two months," Arreza explained.

Earlier, employees of Federal Express said the Thursday to Friday flights were the last flights of the Subic hub which has been operating for more than 13 years here.

Around 500 hundred employees will be affected by the move of Fedex to China. They, however, clarified that the international courier giant will still service the Philippines through the Ninoy Aquino International Airport (NAIA) in Manila. (John Bayarong, GMANews.TV)

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FedEx exits Subic

US delivery giant Federal Express (FedEx) closed its Asian hub in Subic yesterday.

FedEx planes began departing the freeport for various destinations for the last time before dawn, with the last taking off at around six in the morning.

FedEx, which used Subic as base for 14 years, is moving its operations to its new hub in Guangzhou, China.

The company, however, will conduct a re-integration program for more than 500 FedEx workers in the meantime it completes a two-month transition.

Armand C. Arreza, Subic Bay Metropolitan Authority (SBMA) administrator, estimated another 300 people, who are engaged in maintenance, food, janitorial, security and other services, would be affected by FedEx’s pullout.

Overall around 800 direct and indirect workers would lose their jobs after the completion of the FedEx transfer in April, at a time when thousands are getting laid off due to the global economic slump.

The SBMA is likewise bound to lose about P150 million in annual revenues from leased airport facilities and daily aircraft landing fees, among others

Mr. Arreza said the SBMA is currently negotiating with other foreign companies involved in regional transshipment, including a Dubai-based firm, as possible replacement for FedEx.

He also clarified that FedEx would continue its local airfreight and courier services through Airfreight 2100, its exclusive licensee in the Philippines.

Mr. Arreza also stressed FedEx’s decision to transfer its hub to China was made as early as 2004 and did not result from the current global economic slowdown. "The Chinese market dwarfs that of the entire Southeast Asia combined," he pointed out, citing how China accounts 60-70% of Asia’s cargoes.

"Another incentive given by China is that FedEx can handle domestic cargo or ’cabotage.’ The Philippine Constitution allows cabotage for domestic companies only," he added. (Rey Garcia, Businessworld)

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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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