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FFW Slams PPA


The moderate Federation of Free Workers (FFW) has joined the clamor to scrap the anti-worker and anti-consumer Purchased Power Adjustment (PPA) charged by electric companies and the National Power Corporation (NPC). They are set to march to Congress during the State of the Nation Address (SONA) of the President on Monday to air their sentiments.

Ramon J. Jabar, FFW President said that as early as Labor Day this year they have denounced the PPA. While he mentioned that the reduction in the PPA of as much as P1.26 per kilowatt hour this month will immediately ease the burden of workers and consumers, he is wary that we will eventually pay for it just the same. “The NPC admits that they will lose around P5 billion this year for cutting down on the PPA. How will they rebound from that deficit?” Jabar asked. The NPC recently loaned US$100 million from a foreign bank. “By 2003 we are afraid that a new universal charge may actually incorporate the PPA into our electric bills!” he said.

Meanwhile, government studies revealed that 29 of the 35 contracts with Independent Power Producers (IPPs) are with legal, financial and technical anomalies. “Instead of stopping the PPA being passed on to the consumers, government is settling for renegotiation, re-engineering and refinancing of IPP contracts, without even holding the government agents accountable for entering into onerous pacts,” Jabar lamented.

“Besides, why should workers pay more for electricity, petroleum products, water and other basic commodities when their wages remain low?” he argued. Minimum wage in the National Capital Region is pegged as P280.00. “The salary a worker receives is way beyond the living wage needed to live a decent life,” he added.

Late last year, the 200,000 strong FFW and its allies from the Labor Solidarity Movement petitioned for a 77-peso across-the-board wage increase to no avail.

Jabar also lambasted the International Monetary Fund (IMF) for issuing a warning to the government against reducing power rates. Last month, an IMF statement declared that the Philippines must fulfill its commitments for loans incurred while trying to solve the power problem of the 90s. “They (IMF) should not meddle with the affairs of the State; the report of the committee that studied all the IPP contracts was not even out when they issued the statement,” he said.

The FFW is a free and independent labor federation with local unions, sectoral organizations and various associations from the whole country as affiliates. Since its establishment in 1950 it has advocated for the rights and welfare of Filipino workers.

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