‘TRAIN 2 to result in job losses? Government prepared’

MANILA, Philippines — Contrary to its new name, the second package of the proposed Tax Reform for Acceleration and Inclusion (TRAIN) Law will result in job losses although the national government is making contingency plans for such eventuality. 

“To us, this is really rebranding, that is why they renamed this Tax Reform for Attracting Better and High quality Opportunities (Trabaho) Law because TRAIN 2, as we know it, stinks,” ACT Teachers party-list Rep. Antonio Tinio told “The Chiefs” aired over Cignal cable’s One News Channel. 

Quirino Rep. Dakila Carlo Cua, chairman of the ways and means committee of the House of Representatives, admitted that he still does not have an idea as to how many people will be jobless with its implementation. 

“I still have to consult with (Albay Rep.)  Joey Salceda because it was he who proposed it,” Cua said.

Tinio said people deserve to know the reason why the economic managers are allocating P500 million in “annual structural adjustment fund,” another P500 million for “retraining” and a separate P5 billion for the business process outsourcing (BPO) industry should TRAIN 2 get implemented.

“In the interest of transparency, the public should know about this: how many job losses does the government anticipate in this case?” Tinio asked.

The subsidy or “cash grant” on a yearly basis means there will be “job losses” during the five-year period, Tinio noted.

The Duterte administration’s massive Build, Build, Build program will last until 2022. 

But Cua explained the P5 billion allocation for the BPO is to prepare them for the worst. “The experience all over the world is that call centers will naturally taper off because of artificial intelligence. So we are already earmarking for the future.” 

“It’s not really for displacement or anything, but it’s really to adapt to the challenges of tomorrow. We’re reacting to the trends of the time. We need to help them so that they can level up by way of upgrading their skills,” Cua said. “It’s for capacity building.” 

Job losses unlikely

In a press briefing at Malacañang, Finance Undersecretary Karl Chua said the Trabaho bill is not likely to cause job losses but the government is ready to implement measures that would assist workers who may be affected by the measure.

Chua cited Congress’ proposed contingency funds to help workers who may be displaced once “unnecessary” tax incentives are removed. 

“Unlikely. No, everything is possible but it is improbable. Everything is possible,” Chua told reporters in Malacañang when asked whether Trabaho bill would cause job losses.

“It’s Congress who proposed the fund just in case because I cannot guarantee 100 percent. But based on the reform we presented, it doesn’t seem to be the case. At least we have something to offer. It’s like a contingent fund in case there are people who will be displaced,” he added.

Chua said the fund is just a “precautionary move” and that his agency has not estimated the number of jobs that may be lost because of the bill.