Labor leaders put President on the spot

MANILA, Philippines—Dismayed labor leaders on Tuesday besieged President Aquino with questions on how his administration would concretely address key issues confronting the sector and sought tax breaks and lower power rates during a candid dialogue in Malacañang.

With his Cabinet present, the President was put on the spot over Revenue Commissioner Kim Henares’ refusal not to tax wage increases obtained through a collective bargaining agreement.

“We really are disappointed with Commissioner Kim Henares,” said Joshua Mata, secretary general of the Alliance of Progressive Labor, adding that the demand for tax breaks was not about de minimis [small] benefits.

“We’re just saying, ‘Is there a way the salary increase minimum-wage earners receive through their union efforts will not be taxed?’”

At one point during the dialogue at Heroes Hall, the President appealed to the labor representatives: “Please don’t get mad at me because I’m really trying to be fair.”

Aquino said he would have to check if granting a tax break to a particular sector would violate the Constitution, “when it comes to uniformity of taxes.”

“But I will pledge before all of you that we want to maximize the benefits that will accrue to you. And how do we go about it? Give us a little bit more time,” he pleaded.

On the workers’ demand for lower power rates and a stable supply, the President said he might announce “a bit of good news” soon but declined to provide details.

“Are we in a crisis situation right now? We can be, but I don’t think we are in that crisis mode yet. There is still a reserve,” he said, citing ongoing projects to ensure enough power in the years to come.