‘Rollback in cargo fees to result in massive job losses’

Labor leaders warned yesterday of possible massive job losses with the impending implementation of 20 percent rollback in cargo handling and stevedoring fees.

Five organizations of port workers led by the Associated Workers Union (AWU) bonded together to oppose moves to recall port charges which they said would result in the displacement of 300,000 workers.

AWU executive vice president Roberto Oca III said hundreds of port workers have already lost their jobs since December and the number is expected to rise tremendously if port charges are drastically reduced.

"At least 140 port workers have been laid off because of a decline in vessel arrivals and the retrenchment is still going on," Oca said as he expressed fear that more dock workers nationwide would be adversely affected.

He noted that port workers are getting restive because of alleged efforts of shipping operators, exporters and importers to pressure the Philippine Ports Authority (PPA) to enforce the fee reduction.

On Labor Day Wednesday, President Arroyo ordered the PPA and other concerned government agencies to look into the plight of port workers and act immediately on their problems.

Port workers claimed that shipping companies, importers and exporters are demanding a rollback of the 10 percent increase in port charges that were supposed to have taken effect last February.

It was also said that the government was mulling the demand of shipping companies that would cut down the cost of rice and other essential products.

But the port workers claimed that cargo handling cost is just a small percentage of the total overhead expenses and reduction would have little effect on prices of commodities.

Oca said reduction in port charges would force owners of cargo handling firms to cut daily wages and other benefits being provided to workers.

"Port workers are receiving P360 in daily income among other benefits that are barely enough to support their families," he pointed out.

National Federation of Labor Unions (NAFLU) vice president Manuel Arias said the displacement of port workers is not yet the worst scenario that could result from the rollback. It could also lead to the entry of more imported products into the country.

"If they reduce the port charges, more imported products will come in and that will kill our local industries, including the services, which are the only remaining earning sector at this time," Arias explained.

The group thus called on national government to study the matter seriously and consult the port workers before issuing directives that will affect port operations in the country.