NORDIS WEEKLY
February 12, 2006

 

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Unpaid SSS benefits pile up in Northern Luzon

SSS files raps vs. erring employers

BAGUIO CITY (Feb. 8) — Despite assertion of the Social Security System (SSS)-Baguio that their office is doing financially good regarding response to claims of stake holders and pensioners, around 60 cases of unpaid benefits are pending in Baguio alone.

These cases are filed against employers who do not pay their employees’ SSS collection for any contingency. Maternity, sickness, death and disability during work are covered of any member’s claim for benefit through SSS.

Among 10 SSS branches in the Luzon cluster, approximately 40 cases are archived, and 23 are pending in Baguio. The archived cases are those served with subpoena with no compliance yet; or the addresses of the liable member cannot be located. The archived cases could be opened any time the violator re-surfaces.

According to SSS Northern Luzon Assistant Vice President Luis Olais, business owners and employers are compelled to commit clearance from SSS proving they have completed payments for their employees’ collection.

In September 16, 1996, a memorandum of agreement (MOA) concurred between SSS and the Department of Interior Local Government (DILG). The MOA stated that delinquent employers and owners of businesses should furnish a certificate of compliance or clearance from SSS before any permit could be issued. The same was reiterated in September 20, 2001.

Warrants of arrest, subpoenas and mapping operations have been carried out, but some employers have not complied. However, the local government unit (LGU) still issued some with business permits. Thus, some employees are unassisted of their supposed benefits.

“Sa ibang kaso, pag di na talaga mahanap yung employer, binibigyan ng kaunting tulong yung employee. Basta mapatunayan na talagang employed s’ya at the certain time covered ng SSS benefit claim,” [In some cases, if the (negligent) employer could not traced, some financial assistance is given. Proof of employment should be presented, verifying the time of employment was covered by SSS benefit claim] Olais explained.

Olais disclosed no data on non-compliant employers as the licensing period had just finished last month.

Most of the delinquent debtors are security agencies and construction firms.

Baguio branch head Arsenio Dasig said that these employers enter contracts from a mother company usually based in Manila, and then establish a regional/provincial office. Although the local employers remit the collection to the mother company, the latter overlooks remittances from the provinces to the SSS.

In the Benguet area, some companies and self-employed entrepreneurs complied. Baguio remains problematic. Olaiz then calls on the Baguio LGU to see through more austere provision of the MOA.

A media writer asked the SSS officials if the delinquency reflects the country’s harder economy.

Olais shared that their collection as of January to December 2005 has increased around 51% compared with 2004’s collection. They also claimed they have over 300 account officers dispersed in the region to collect the members’ premium.

Moreover, Dasig said that there are many factors to consider regarding the economy.

“Di naman ito ang indication ng bumababang economy,” [This (delinquency) is not an indication that our economy is really going down] Dasig asserts.

In a separate interview, Kilusang Mayo Uno (KMU)-Cordillera’s Aldwin Quitasol said, “May mga kumpanya talagang di nagreremit ng mga kontribusyon ng empleyado nila. Syempre pag nag-remit sila, mababawasan kita nila. Tamad lang sila o wala talagang pakialam sa kapakanan ng mga manggagawa nila.” (There really are companies that do not remit their employees’ contributions. Logically, if they remit, their profits decrease. It is either they are too sluggish, or they do not mind their employees’ welfare.)

Quitasol also shared some incidents some workers experienced. He told about the former construction workers of E. Ramos Constructions who experienced weekly (instead of monthly) deductions supposedly for their SSS contributions.

However, when one worker had an accident during duty he was not able to claim his contingency benefit because his employer did not remit his premiums.

He also mentioned about a bus line employee who failed to collect his retirement pension after almost 20 years in service due to his neglectful employer.

“Di rin pwedeng mag-loan dahil malalaman na lang ng manggagawa, wala pala siyang pondo pang-benepisyo. Talagang ang kawawa dyan ang manggagawa,” (Some workers could not also apply for loans. The employee would just find out, they have no funding. The bottom line is that the workers are the ones who really suffer) Quitasol concluded. # Pink-Jean Fangon Melegrito for NORDIS

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