1,200 Customs employees to lose jobs in streamlining

MANILA, Philippines - Around 1,200 Customs employees will lose their jobs once the government implements its plan to streamline the bureaucracy, the Bureau of Customs Employees Association (BOCEA) said Wednesday. In a rally held at the Customs main office in Port Area, Manila, BOCEA President Rommie Pagulayan said Executive Order (EO) 366, which seeks to cut bureaucracy to promote efficiency, is untimely given the global economic crisis that is expected to increase the unemployment rate. Rommel Francisco, BOCEA public relations officer, said the employees up for retrenchment comprise around 30% of the agency’s total work force. "As early as January, affected employees received their notices, officially informing them that they are affected by the rationalization plan after the holiday vacation," he said. Mr. Pagulayan said around 700 employees have received the notices and were given 10-15 days to decide whether to be transferred to another agency or avail of the retirement package, which offers half a month’s salary for every year of service. "These options are not palatable," he said, adding the employees include security guards, warehouse men and storekeepers. Signed in 2004, EO 366 directed all department secretaries to conduct a "strategic review" of their agencies’ operations and organizations to improve quality of service. It also seeks to identify and abolish redundant functions and outdated positions. Earlier, Customs Commissioner Napoleon L. Morales said employees should upgrade themselves by studying or taking the civil service exams to remain relevant and to avoid being retrenched. He noted that the automation of various services have rendered some positions obsolete. But Mr. Pagulayan said this would be hard especially for workers who are too old or have no time to study new courses. He said they will hale the plan to court. But the Finance department, which is the bureau’s mother unit, is bent on implementing the scheme. "The rationalization plan would make operations more efficient... If an organization has a lot of [redundancies] then it is better to streamline it," said National Treasurer Roberto B. Tan, who was tasked to oversee the program’s implementation. He said the Finance Department is still finalizing the extent of the streamlining program. Finance Undersecretary Gil S. Beltran said improved skills would facilitate the automation of Customs processes. "The [Customs] national single window program is part of the computerization. The Customs needs more skills and brains than brawns. It needs less janitors, clerks and messengers. It needs analysts and other professionals," he said. Mr. Beltran said the National Tax Research Center would also be affected by the plan. Performance pay Meanwhile, the Customs bureau and Bureau of Internal Revenue (BIR) have sought to peg their pay based on current rates rather than on performance under a bill exempting them from the salary standardization law. Customs Deputy Commissioner Gregorio B. Chavez told Wednesday’s hearing of the House oversight committee that "base rates would be stable and would not be tantamount to yearly or quarterly adjustments." BIR Assistant Commissioner Leonor V. Rogers said increases in tax collection should be the basis for merit adjustments, but should not be used for the pay structure. Under House Bill 5283 authored by Quezon Rep. Danilo E. Suarez (3rd district), the salary of revenue officials and employees would be pegged on a comprehensive job evaluation based on collections of the preceding year as approved by the Department of Budget and Management, provided that the total personnel budget of the two revenue-generating agencies would not be more than 60% of the total operating budget. "My package is better than what they are proposing, because as they rake in more collections, the higher their salaries will be," Mr. Suarez, also oversight committee chairman, toldBusinessWorld. But he said he is open to amending the bill in a compromise arrangement. The committee has approved the bill in principle last November. The bill seeks to institutionalize a merit-based system where good performance is rewarded by an annual salary upgrade, and higher pay would discourage officials from engaging in corrupt practices. The committee has justified the need to exempt revenue-generating agencies from the salary standardization law, but the details of the pay scheme has yet to be finalized, Mr. Suarez said. — Alexis Douglas B. Romero and Jhoanna Frances S. Valdez, BusinessWorld