[asia-apec 354] #4/ APL Transport Strike vs Deregulation

[ALARM]

Date: 07 Feb 97 16:06:18 -0800
From: LEARN <LEARN at phil.gn.apc.org>
To: alarm at HK.Super.NET
Subject: #4/ APL Transport Strike vs Deregulation


Alliance of Progressive Labor
<learn at phil.gn.apc.org>

Campaign Report
6 February 1997 

February 5 was Marked as a National Day of Protest
APL Transport Unions Paralyzed Key Cities in the Philippines
-------------------------------------------------------------

Last 5 February, various progressive groups staged different  forms of protest 
actions in all major cities of the Philippines to stop the full implementation
of the downstream oil industry deregulation. The National Day of Protest was
led by the Bukluran ng mga Mamamayan Laban sa Oil Industry Deregulation or
BUKLOD
(Citizen's Alliance Against the Oil Industry Deregulation) -- a coalition
composed
of the Alliance of Progressive Labor, the Freedom from Debt Coalition,
religious 
groups and some legislators.

The National Day of Protest was marked by transport strikes as well as massive 
mobilizations in Manila, Cebu, Davao, Cagayan de Oro, General Santos,
Zamboanga,
Bacolod, Iligan and Tacloban.  Strong public sympathy was noted in almost all
cities.

The Issue.....

Last year, the Philippine Congress passed Republic Act 8180, also known as the 
Oil Industry Deregulation Act of 1996.  The law intends to deregulate the oil 
industry in two phases.  Phase I started last March 1996 and Phase II was 
scheduled to be implemented this 8 February 1997.  Phase I includes the 
restructuring of the tariff and tax structure of oil and oil products as well
 as the implementation of an Automatic Pricing Mechanism (APM), while Phase II
involves the total removal of the Oil Price Stabilization Fund (a buffer fund
set up years ago to theoretically cushion consumers against oil price
fluctuations) and the APM allowing market forces to determine oil and oil
products. The idea behind RA 8180, as the government claims, is to secure free
competition in the oil industry which at the present is 96% controlled by
Shell,
Caltex and Petron (a privatized oil company).

However, a careful perusal of the law would reveal that such an objective will
not be met.  On the contrary,  deregulating the oil industry while imposing a
4%
tariff differential in favor of refined oil products, a huge oil stock
requirement, and a ban on predatory pricing, not to mention the huge capital
requirement of setting up oil refineries and oil stations around the country,
would make it hard for new players to enter the oil industry and therefore
leave
the market very vulnerable to the manipulation of the said oil companies.
In fact since last year,  there were very few new players who came into the
picture most, if not all of which are merely oil and oil product retailers.

Deregulating the oil industry at a time when the market is still controlled by
only three oil companies would further entrench these companies hold on the
market and leave consumers vulnerable to their price manipulations.

....The People's Response

As early as March last year, before the Congress finally passed RA 8180,  the 
Freedom from Debt Coalition and the Alliance of Progressive Labor  started 
warning the public about the dangers of the new law and the growing powers of 
the oil companies.  Several protest actions were held to project the
people's opposition to RA 8180.  However, other equally serious issues
superseded
the campaign.

It was only in January of 1997 when the campaign started picking up again.
In a press conference held late January, the APL, FDC and the religious sector
announced their intentions to mount a massive, nationally-coordinated campaign 
to stop the implementation of the second phase of RA 8180.

The Ramos Administration, for its part ordered the earlier implementation of 
Phase II of the oil industry deregulation.  This move forced the APL to
prepare for regional transport strikes in Davao, Cebu, Cagayan de Oro and
Zamboanga. Later, various independent transport groups in Bukidnon, Iligan,
Ilo-ilo, General Santos and Bacolod declared  that they would join the
APL-led transport strikes.

A few days later, the BUKLOD coalition was formed and declared 5 February as a 
National Day of Protest.

The National Day of Protest

The National day of Protest was marked by massive mobilizations in Manila, 
Cebu, Bacolod, Ilo-ilo, General Santos, Davao and Zamboanga.  In Manila alone, 
about 7,000 workers, students and women activists participated in a march rally

which started in the University of Sto. Tomas (UST) at around 12:00 PM.  From 
UST, the protesters marched to Malacanang (Official address of Pres. Ramos) 
where they breached police barricades and held a one-hour protest rally in
front 
of the presidential palace.  From there, the rally moved on to the Senate where

leaders of sectoral organizations lambasted the Legislators for passing RA
8180.
  
But the high point of the national day of protest was the transport strikes led
by the APL in Cebu, Davao, Cagayan de Oro, Bukidnon, Zamboanga.  Other
transport
groups held similar actions in Quezon City, Iligan, Cotabato and General
Santos.

The most successful transport strike was In  Cagayan de Oro.  An APL affiliate,

Transport Federation of Cagayan de Oro (TRAFECO), paralyzed  98% of the 
cities transportation.  Even busses from the city to the countryside was 99% 
paralyzed. 

In  Cebu City,  more than 80% of the cities transport system was  paralyzed. 
the 
transport strike was led by Mandaue Drivers and OperatorsA Association, an APL 
affiliate, together with its transport alliance -- ANDAR.The  City Mayor
ordered 
various government agencies  to try to stop the strike.  Several instances of 
harassment were reported.  However, failing to stop the mass action, the  City 
Mayor later called for a conciliatory meeting with the transport leaders.

In Davao, another APL affiliate, Southeastern Mindanao Diversified Drivers and 
OperatorsA Cooperative (SEMMDOC), paralyzed 85% of public transportation.  In 
some routes, 100% participation rate was reported (Obrero and Kalinan).  The 
local government was forced to suspend classes in all levels. This was achieved

despite the press conference held by the Davao Chapter of Bagong Alyansang 
Makabayan (BAYAN Davao) stating that they will not join  the transport strike 
because they still have to study the issue.  They even erroneously claimed that

only 35% of the transport workers joined the strike.

In Zamboanga, PASADOZ-APL and FOJODAZ paralyzed 80% of the public 
transportation, 80% in Northern Bukidnon and 90% in Western Bukidnon. In other 
areas such as Iligan, Cotabato, General Santos, Bacolod and Ilo-ilo, the
transport 
strike was not as successful  but they were nonetheless felt by their local 
governments.  Figures from these areas are still to be collected.

The National Day of Protest  prompted the Senate to call for an emergency 
hearing of the Energy Committee today, 6 February.  While the Senate Committee 
is yet to submit its recommendation,  it is quite impossible for them to rush a
law in time to stop the full implementation of the oil industry deregulation.
This would mean that the APL, together with the BUKLOD coalition would have to
move on to the next phase of its campaign -- exposing the anti-consumer
practices of the giant oil companies.