PRESS RELEASE
25 March 2009

FFW Supports Unemployment Assistance

The Federation of Free Workers (FFW) supports the initiative to adopt an unemployment insurance scheme for displaced workers.

FFW Acting President Atty. Sonny Matula said, “President Gloria Macapagal-Arroyo’s endorsement of an unemployment insurance is timely.”

The proposal emanated from Economic Planning Secretary Ralph Recto who is contemplating between Php 5,000 and Php 10,000 in unemployment insurance for workers who have been displaced as a result of the global financial crisis.

“Unemployment insurance is one of the schemes lacking in our social security system,” said Matula. “Unemployment insurance is one of the key features of many social security systems abroad,” he added.

“Fears that implementing such a scheme during a crisis will cause the downfall of the social security system are unfounded,” clarified Matula.

“As a matter of fact, the contrary holds true. Sweden and the U.S. adopted this scheme at the time they were facing unemployment crisis in the 1920s and 1930s, respectively.” Matula added.

Matula expressed that the ball is now in the hands of Congress.

The Social Security Commission alone cannot adopt it – It needs congressional action,” Matula opined.

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Contact: Atty. Jose Sonny Matula
0918-9352782

Julius H. Cainglet
0917-8553279