Continuing resistance against the privatization of the Social Security System
The Macapagal-Arroyo regime has no intention of shelving its plans to privatize the Social Security System (SSS) despite fierce and widespread resistance from SSS employees.
The SSS, which is set to be privatized by 2004, is but one of the government financial institutions and corporations to be subjected to privatization upon orders of the International Monetary Fund. The privatization of the National Power Corporation was recently approved. Soon to be privatized are the National Housing Authority, National Food Authority and other government agencies.
SSS employees have been staging pickets during their lunch hour since the latter part of May to resist the agency's privatization. But their grievances fell on deaf ears. SSS president Vitaliano Na�agas even deceived the employees in saying that the planned privatization of the security agency would not push through. Instead, the SSS would implement "outsourcing" or the availment of services outside of the agency in accomplishing the company's tasks.
"Outsourcing" is a wily maneuver that would privatize the SSS piece by piece. In line with this, Information Technology Management and the Health Care Program have been abolished and the Information Technology and Assets and Loans Department have been put in the hands of private entities.
The outsourcing of the SSS' Information Technology is in preparation for the company's fullblown privatization. Numerous private corporations have been taking a keen interest in this since SSS has one of the most advanced computer systems in Asia for the processing of pension claims. But with the rapid advances in technology, especially with respect to computers, SSS will only serve as a dumping ground for foreign companies' outmoded equipment.
Also to be subjected to outsourcing are departments that have to do with other services such as bookkeeping, accounting, payroll, hiring, human resources administration, cash management and control, financial reporting, tax reporting, accounts receivable collection, accounts payable administration, customer statements processing, customer call centers, distribution logistics, transaction processing centers, temporary staffing and website design.
This, the job security of some 4,000 SSS employees is gravely in peril. More than this, the interests of the security agency's 23 million members are endangered.
The SSS' funds amounting to P174 billion, come from the contributions of members, mainly rank-and-file private sector workers and employees. Monthly deductions from their wages and salaries range from P84 to P782. In exchange, they can avail of retirement, sickness, maternity and other benefits, which are not easily availed of by members.
Putting this giant fund under private administration is the main target of the SSS' privatization. By privatizing this fund, any financial company that administers it would be able to extract immense profits from the contributions and insurance funds of 23 million workers and employees across the country.
Due to the size of this fund, corrupt and greedy government officials have long been interested in it. It served as one of the ousted Joseph Estrada's milch cows when he ordered former SSS president Carlos Arellano to use P1.1 billion in SSS funds to buy shares from Belle Corporation (a company owned by Estrada through his crony and dummy Dante Tan). Estrada also ordered the president of the Government Service Insurance System to buy shares from the same corporation. From the total P1.8 billion SSS and GSIS funds that were loaned and used to purchase Belle Corporation shares, Estrada raked in P284 million in capital gains and P189 million in commissions.
A large amount is likewise deducted from SSS funds due to very high salaries, bonuses, incentives, per diems and other privileges received by the SSS' own officials. The monthly salaries alone of the SSS' president and 58 vice presidents range from no less that P100,000 to more than P300,000. They also receive 13th, 14th, even 16th month pay. Aside from this, SSS officials earned an additional P235.1 million in bonuses and P211 million in incentives last year. They also receive P150,000 as per diem whenever they attend board meetings of companies where the SSS is represented.
The Macapagal-Arroyo regime made a partial retreat from privatizing the SSS when the latter's employees staged a widespread protest action. The employees picketed during their lunchbreak for 70 days to express their displeasure at the planned privatization and over Na�agas' management style. This culminated in a four-day walkout led by the Alert and Concerned Employees for a Better SSS (ACCESS) that paralyzed all SSS offices nationwide. They were supported by COURAGE, Kilusang Mayo Uno and other militant groups. In the face of such intense protests, Macapagal-Arroyo was obliged to pull out Na�agas from the SSS on August 2 to douse cold water on the employees' burning struggle.
The step was supposed to be the Macapagal-Arroyo regime's "peace formula". But it did not take long before it dealt with the situation with a mailed fist. Newly appointed SSS president Corazon de la Paz has said that employees who led and joined the walkout would be charged even as she declared that reforms (meaning measures leading to privatization) that had been previously initiated in the SSS would continue. Management is closely studying means by which to weaken the organization of SSS employees to prevent a repeat of the strike once the agency is privatized.
But the SSS employees, along with employees of the NFA, NHA and other government agencies about to be privatized, have averred that they will not relent in their fight against privatization. They are fighting for job security and the welfare of the people who would be deprived of services due them. Their steadfast stand and collective action have already reaped a small victory. In merging their struggle with the people's broader struggle, they hope to achieve even bigger and more thoroughgoing victories.
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