14,000 Back to Regular Work, DOLE Says

Some 14,021 workers who were temporarily laid off and those under flexible work arrangements in 53 firms are now back to their regular employment, the Department of Labor and Employment (DOLE) reported yesterday.

The Bereau of Labor and Employment Statistics (BLES) reported that the biggest rejoining workforce comes from Calabarzon, totaling 7975 workers in 29 firms.

"Some firms in economic zones affected by the crisis have started to recover as new work orders started to come in," says Labor Secretary Marianito Roque. 

The DOLE chief says that even as the crisis reels in many parts of the world, investors are coming to the Philippines to put up businesses which will subsequently open up thousands jobs for many local workers.

The DOLE reported that there would be around $15-billion in investments to be expected in the mining industry this year alone.

They also say that despite the displacement of 6,000 Overseas Filipino Workers (OFWs), the demand continues to soar.  The Manila Economic Cultural Office reported that the 852 displaced OFWs in Taiwan were rehired this year, coupled by 468 others who found jobs as well.

Source:  Business Mirror

BSP Tightens Rules on E-Money

The Bangko Sentral ng Pilipinas (BSP) has issued landmark guidelines formalizing the use of  electronic money in online transactions, reportedly the first of its kind of electronic innovation in the world.  The new rules sets a maximum monthly load limit of P100,000 (or $2,068) on any e-money instrument such as cash cards, e-wallets and similar products.  The Anti-money Laundering Law will also cover e-money transactions.

Source: Philstar

House Gives Go Signal for Social Security Condonation Bill

Congress has passed a bill that will give a one-time relief to employers on penalties for late or non-remittance of Social Security Services (SSS) premiums of their employees.

Authored by Quezon Rep. Lorenzo Tañada III, with Deputy speakers Amelita Villarosa and Raul del Mar, the Social Security Condonation Law of 2009 was unanimously approved before congress went on lenten break last week.

Tañada called the measure a 'Triple Stimulus Package' because it provides a strong incentive for companies in arrears on their principal payments for their employees' contribution to immediately settle what is due and overdue, gives troubled companies 'breathing space,' and will allow workers to obtain loans and other SSS benefits that would otherwise be denied due to to companie's non-remittance of contributions.

The bill, as promoted and defended by Camarines Sur Rep. Felix R. Alfelor Jr., is expected to encourage employers to be more prompt in paying their SSS obligations. He further said that  thousands of employers that are currently behind in their obligations are expected to take advantage of the opportunity to be freed from penalties.

This measure will help pump-prime the economy because part of the collection will go to the National Treasury.  Employers who will be  paying their arrears in cash or installment will be qualified upon execution of the proposed act.

PLDT Retirement Buys Meralco Shares

PLDT Retirement Fund buys board seats in meralco

Philippine Long Distance Telephone Company, PLDT, bought more than a 10% of the outstanding stock shares of MERALCO, Manila Electric Corporation, enough to bargain for a board seat in the country's biggest power distributor.

The Lopez-led utility firm, in an interview by the Philippine Stock Exchange, PSE, yesterday announced that the PLDT Beneficiary Trust Fund, together with a subsidiary holding firm abroad, bought about 11.3 M shares, which now makes their stake worth P 10.64 B based on March 9 closing prices.

PLDT has no immediate plans of buying more Meralco shares in the coming months, but plans to install its own choice of director to its board this May 26.

This acquisition sent prices skyrocketing to a record close of P 126 last friday. Yesterday's announcement ended weeks of speculation about further confrontation between Pangilinan-led PLDT and Cojuanco-led San Miguel Corporation, SMC, which owns 27% of the power distribution firm.

With the identity of the buyer of MERALCO shares now in the open, the next step is for companies to garner enough proxy votes, if it is indeed true that SMC wants to gain majority control over MERALCO.  But the market has yet to hear reports that SMC is gearing up for a proxy war.

MERALCO stock price dived down to 94 pesos yesterdat after surging more than 30% in the last two trading sessions.  Market talk pointed to a battle for control over PLDT between the Lopezes and Cojuanco, which is currently diversifying out of its core food and beverage business.

BSP Rumored to Cut Reserve Requirements

The Bangko Sentral ng Pilipinas (BSP) said it might be is open to the possibility of lowering down the reserve requirement of banks to increase local liquidity and boost consumer spending, and also to help bring back consumer confidence.  Current reserve requirements for banks remain at 19% of total deposit liabilities and initial cuts by the BSP from 21% last November 2008. They say that this 2% cut in rates helped raise P60 B worth of liquity in loanable funds that banks could infuse into the economic system.

Aside from the rate cut made last November, the BSP has also reduced its overnight borrow rate by 125 basis points last December.  Currently, the borrowing and lending rates stand at 4.5% and 6.75%.