TUCP, business and other labor groups meet to prepare for unemployment, retrenchments and business shut down due to power crisis

By TUCP
July 21, 2014

QUEZON CITY – The Trade Union Congress of the Philippines (TUCP) is scheduled to meet Wednesday with various business and labor groups to draw up measures amid the adverse ramifications of the current power crisis to employment and stability of businesses in the country, TUCP executive director Louie Corral announced yesterday.

“We have no national strategy to address the looming power crisis. So, the TUCP, other labor groups, consumer and business organizations will meet on Wednesday with the aim of figuring out a recommendation to the government on how to minimize the impact of a full-blown power crisis precluded by prolonged rotational brownouts currently prevailing in many key areas Luzon and in Mindanao. TUCP wants the government to be prepared when the ‘perfect storm’ caused by lack of power policy hits the country because it’s the workers who’ll be whip hard when the storm comes,” Corral said.

With one of the highest electricity rates in the world, the country remains unattractive to new investments that create quality jobs resulting to a static unemployment of 3.046 million in April 2013 to 2.924 million in April 2014 while underemployed are 11.057 million and 11.501 million covering the same period. With the rotational brownouts in the equation, TUCP fears many jobs might be retrenched with companies affected by inadequate power supply.

TUCP and its labor coalition called Nagkaisa has recommended twice to President Aquino during the previous pre-labor Labor day dialogue since 2013 the creation of a multi-agency, multi-sectoral presidential task force headed by him and composed of the economic and infrastructure clusters of the cabinet, business chambers, labor, consumer and power industry players. The aim of the task force is to address the insufficiency of power and the need to determine affordability and competitiveness of power rates in the country.

Energy Secretary Jericho Petilla responded in May 2014 with the issuance of Department Order DO 2014-05-0009 which creates a study group under the DOE. The TUCP and the Nagkaisa, however, refused to participate because they are asking for a presidential task force and not a study group.

Before the onset of rotational brownouts in NCR before typhoon Glenda wrought havoc last week, Corral said the TUCP has urged Petilla to declare a national emergency on power ‘so that collectively we come up with the right solutions.’ However, Petilla said they are studying the suggestion.

“The fate of all industry roadmaps particularly the employment targets is dependent on how we address the power crisis right now. We need a truthful picture of our future power supply so that we can come up with clear strategies and coping mechanisms and avert companies shutting down and retrenchments of workers. A flawed power industry roadmap will be fatal to the economy. We cannot afford to hinge on the day-to-day weather predicament the fate of the employment of millions of workers,” Corral stressed adding: “we emphasize that without sufficient and affordable power, there will be no investors and there will be no new jobs.”