Philippines: ''Sin'' Tax Law Hurting Workers of Top Tobacco Manufacturer

Source from:  Business Mirror  01/13/2014

Workers in the biggest tobacco company in the Philippines are complaining that they are already suffering heavily in the first year of implementation of the "sin" tax law.

They said Republic Act 10351, or the "Sin Tax Reform Law of 2012," was signed into law with the intent to restructure the excise-tax collections of the government on alcohol and tobacco products.

However, in the second year of implementation of the gradual increment of taxes, low-priced cigarette brands are now charged a P17 excise tax from P12 last year. Meanwhile, high-priced brands bear a P27 excise tax from P25 last year.

By 2017 a P30 unitary tax shall be imposed on all machine-prepared tobacco products and will increase 4 percent annually after that.

The workers' union of Philip Morris Fortune Tobacco Corp. (PMFTC) claims that they are the ones bearing the full weight of what they called a "fundamentally unjust law," because, according to them, it "is a pass-on imposition and it jeopardizes jobs, livelihoods and ultimately, the entire local tobacco industry."

"The Aquino administration is in seventh heaven for accomplishing beyond their tax-revenue targets and the capitalists are also elated for their sustained takings despite the excise-tax increase, as the ordinary wage earners are diligently bearing the cross and are the ones neglected to the extent of being sacrificed in the altar of profit," said Rodelito Atienza, president of the PMFTC labor union.

Tensions grew between the company and its labor union in the last week of 2013 after the management delayed the release of the plant's production plan for 2014.

This made workers worry that the management was planning to shut down operations after it informed the union a week earlier that the company's market share has plunged significantly.

The management of the tobacco giant initially wanted a five-month shutdown of its operations from January up to May 2014 after the company failed to hit its expected sales in the last quarter of 2013.

The union refused by citing provisions in their collective bargaining agreement, pushing the company to adjust their plans.

Still, the workers claim the management's final offer was still a "heavy price to pay for simply being diligent and productive."

"When the company implemented a stock buildup scheme, forcing us to go beyond the eight-hour-a-day work load for several months, we cooperated, toiled hard and yet, in the end, we are the ones suffering the brunt for the company's dismal production schemes and far-out projections. We are the last to benefit and yet the first to sacrifice," Atienza said.

Atienza said they will continue urging the company to soften the impacts to their already stressed budget since the company has commenced the lessening of work days till the month of May. Enditem