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17 November, 2008
ICEM Asia-Pacific Region affiliate, the Philippines Cement Workers’ Council (PCWC), conducted an action on 13 November in Quezon City to retain a 5% tariff on imported cement. Faced with a number of recent layoffs due to the global economic crisis, the PCWC is opposing a Philippines Cabinet recommendation to President Gloria Macapagal Arroyo to eliminate the 5% tariff.
“Our local cement manufacturing industry has already experienced the bad effects of zero tariffs on imported cements in the early 2000s,” said PCWC National Coordinator Felix Deyta. This “led to closure of some cement plants.”
Currently, both Philippines Cement and Lafarge Philippines Cement have begun retrenchments because of the economic slowdown. Cemex Philippines also cut 3% of its 587 workers at the end of October due to a restructuring plan.
PCWC Secretary General Samuel Eslava said further cuts are inevitable of the tariff is rolled back. Added PCWC President Ricardo Pascual, quoted in the Philippines press, “If tariffs are lifted, layoffs are certain. We’re calling on the President to study the matter again. The issue is not the loss of government revenue, but the loss of jobs.”
The ICEM issued a letter in support of the PCWC d position and demanded that the government consult with its social partners, including the union, before removing the tariff. “Acting in favour of foreign business at a time of a worsening global economy” will have “a deep impact on the job security of ordinary workers” in the Philippines, said the ICEM.
The 5% tariff applies to international trade of Portland cement into the Philippines. A 3% tariff is charged to producers in countries belonging to the Association of Southeast Asian Nations (ASEAN)