Converting hospitals to eco-enterprises: Capitol workers oppose plan to repeal ordinance

ILOILO CITY, Philippines — Capitol employees are opposing the Iloilo Provincial Board's plan to repeal Ordinance No. 2011-091 converting the Iloilo Provincial Hospital and all district hospitals in the province into economic enterprises.

The more than 200 employees, including the job hires, submitted to the Office of the Governor a manifesto expressing their apprehension that the repeal of the ordinance would result in the loss of their benefits.

These are the productivity enhancement incentive of P35,000 each, annual productivity pay, monetization of leave credits, loyalty or longevity pay, salary increment, employees' anniversary bonus, hazard pay of public health workers and social welfare officers and workers, subsistence allowance and laundry allowance, among other benefits provided for by the Magna Carta of Public Health Workers.

Governor Arthur Defensor, Sr. agreed with the employees' claim that once the ordinance is repealed, there will be a subsequent increase in the percentage of the appropriation for personal services (PS) of the province beyond the ceiling prescribed by Republic Act No. 7160 or the Local Government Code of 1991.

In effect, this will prohibit the Iloilo provincial government from using its income for additional compensation and privileges of the employees, said the governor.

"I was not surprised if they have done this move because the repeal will affect them. If we will not convert these district hospitals into economic enterprises, we could not hire additional employees and increase their benefits because definitely we will be exceeding the ceiling prescribed by law which is 45 percent in our PS. Above 45 percent of personal services is already disallowed by law," Defensor said.

For 2013, the 45 percent budget for PS is P 903 million, of which P 537 million is allocated for the general fund and P366 million for the economic enterprises.

The employees' manifesto stated that, assuming that the ordinance is not repealed and the appropriation for PS for 2014 remains the same with this year, they will continue to avail of all the benefits they are currently enjoying, but if the ordinance is repealed, the PS percentage will jump to 60.78 percent thus exceeding the law's 45 percent limit.

"As a result, we could no longer be entitled to receive many benefits. It will affect us and our respective family members and dependents," the employees contended. (FREEMAN)