Welcome to SBFCC!

The Subic Bay Freeport Chamber of Commerce, a member of the national Philippine Chamber of Commerce and Industry, is an independent, nonprofit, membership-funded organization founded in 1995 to serve and represent the interests of its member businesses. We are also an accredited marketer of the Philippine Retirement Authority.

We are actively involved in a number of areas and are in the forefront of issues affecting our member businesses, their employees, and their families.

The single distinguishing characteristic that sets SBFCC apart from other Chambers of Commerce is that our members come from some 20 countries around the world.

Freeport Economic Data

The Subic Bay Freeport's economic data that covers almost the full 2009 is now available in the Chamber Forum for Chamber members. Click here to access the info.

Also available are information related to the 2009-2010 Philippine Economic Briefing held last December 14 at the Holiday Inn in Clark, Pampanga. Click here to view the info.

Chamber Events

Networking Night

19th North Luzon Area Business Conference

The Philippine Chamber of Commerce and Industry recently held the 19th North Luzon Area Business Conference at Tuguegarao City in the Province of Cagayan. In attendance were Governor of Cagayan Alvaro Antonio, PCCI Chairman Sergio Ortiz-Luiz, PCCI President Francis Chua, DTI Undersecretary Zenaida Maglaya, Ambassador Donald Dee, Isabela Governor Faustino Dy, CEZA Freeport CEO Jose Mari Ponce, committee chairs of PCCI, regional directors, and various chambers of commerce presidents from Regions I, II, and III, including the Subic Bay Freeport Chamber of Commerce. The conference was one of the biggest confergence of business leaders from North Luzon and tackled tourism, infrastructure, energy, and agriculture topics among others.

MOA Signing Between Central Luzon Chamber Presidents

Chamber of Commerce presidents from Region III including the provinces of Bulacan, Pampanga, Tarlac, Bataan, Nueva Ecija, and Zambales signed a Memorandum of Agreement signifying the cooperation and collaboration between the different areas.

Midyear General Membership Meeting

Another successful mid-year general membership meeting was held this 29th of June. SBFCC President Danny Piano reported on three key areas: Membership and Financial Standing, Accomplishments, and Milestones achieved. SBMA Administrator Armand Arreza, on the other hand, talked about the current state of the Freeport as well as discussed the various new investments that are expected to come in. Thanks to the Lighthouse Marina Resort for hosting the event. Click here to view photos during the event.

Donation of Rescue Life Vests

SBFCC President Danny Piano's personal donation of 10 rescue life vests, through SBFCC's Security, Safety, and Rescue Committee headed by VP Rose Baldeo, were officially handed to SBMA during the GMM.

6th SBFCC Golf Tournament

The Chamber held for the first time its annual golf tournament at the Hacienda Luisita Golf Course in Tarlac. In the past, this would have been a very lengthy trip frought with traffic gridlock. But with the SCTEx, travel time from Subic to Tarlac is now a mere hour and along beautiful sceneries, too. The golf course itself is beatiful and obviously well maintained. The Chamber tournament was again successful, thanks to our sponsors and players who participated. The list of winners can be viewed here while photos of the tournament can be viewed on our Online Forum's Gallery.

Subic-Clark Milestones and Prospects Forum

About 500 high ranking government officials, headed by President Arroyo, and businessmen from the Subic Clark corridor attended the Subic-Clark Milestones and Prospects forum at the Grand Ballroom of Holiday Inn Clark. Presentors include former SCADC Chairman Ed Pamintuan and GGLC President Dennis Wright. An Open Forum was also conducted with questions from the audience asked from panelists: SBMA's Armand Arreza, CDC's Benigno Ricafort, CIAC's Victor Luciano, GGLC's Dennis Wright, CILA's Simon Morley, and SBFCC's Danny Piano.

State of the Freeport Address

SBMA Chairman Feliciano Salonga and Administrator Armand Arreza (pictured below), in what could be their last SOFA, presented the many progress that happened inside the Subic Bay Freeport in the past year. Future developments extending up to five years were also discussed.

The SOFA is an annual event organized by the Subic Bay Freeport Chamber of Commerce. More pictures of the event are in our Online Forum, click here to view.

Induction of 2010 Chamber Officers

Administrator Aramand Arreza inducted the 2010 officers of the Chamber during the recent SOFA. From the left are President Danny Piano, Vice-President Rose Baldeo, Corp. Sec. Omy Duran, Treasurer Lawrence Lusung, and Directors Tom De Bruin, Eloy Bermudes, and Lewis Strickland.

Recognition of Chamber Founders and Past Presidents

This year being the 15th Anniversary of SBFCC, the Chamber recognized its founders who had the vision to form the organization in 1995, and its past presidents who selflessly provided voluntary service during their terms. Pictured below is Ms. Susan Dudley, one of the founders, and Executive Director from 1995 to 2009.

New Golden Eagle Member of the Chamber's elite President Circle

PLDT-Subictel, the newest member of the Chamber's elite President Circle, was awarded their Golden Eagle Membership certificate during the SOFA.

PRA, SBMA, SBFCC Tripartite MOA

After almost a year of arrangements and negotiations, a Tripartite Memorandum of Agreement between the Philippine Retirement Authority, Subic Bay Metropolitan Authority, and the Subic Bay Freeport Chamber of Commerce is now official. The MOA commits the three organizations to continually help in the development and transformation of the Subic Freeport into a retiree-friendly destination. With the MOA, potential retirees can now apply, through the Subic Chamber, for PRA membership from Subic instead of going to Manila (click here for info about retiring in the Philippines). The Chamber can also provide assistance to establishments wanting to be accredited by the PRA.

In the picture from left to right are: Susan Dudley, former SBFCC executive director and instrumental in crafting the MOA; SBMA Administrator Armand Arreza, SBMA Chairman Feliciano Salonga, PRA Chairman Gen. Edgardo Aglipay; Prof. Danny Piano, SBFCC President and CEO of ASI-Phil Branch; Rose Baldeo, SBFCC Vice-President and CEO of Global Development; Lawrence Lusung, Chamber Treasurer and Senior Manager of the Bank of Commerce; and USN Capt. Eloy Bermudez (Ret), SBFCC Director and General Manager of Subic Dry Dock Corporation.

Locators' Congress

Once a year, the Subic Chamber provides the opportunity to its members to meet face to face the SBMA Administrator, Senior Deputy Administrators, and department heads all in one room -- and ask them questions to clarify issues and concerns. This year, the panelists include SBMA Administrator Armand Arreza himself, SDA Stef Sano, Engr. Mar Sanqui, DA of PWTSG, and Maj. Teng Tolentino of, Chief for Operations of LED. Not in picture but present are more than a dozen more SBMA officers.

We thank the SBMA officials for taking the time out from their busy schedules to meet with us.

Kalaklan Lighthouse Bridge Multi-Sector Meeting

In an effort to obtain and disseminate definitive information about the closure of the old Kalaklan Lighthouse Bridge, and in an attempt to persuade collaboration between the various stakeholders to alleviate the expected traffic congestion, the Subic Chamber organized a multi-sector conference involving SBMA, the City of Olongapo, the Metro-Olongapo Chamber of Commerce, and the Greater Subic Bay Tourism Bureau.

Christmas Party

Fun! This was what members of the chamber had during the recently held Christmas party last December 11 at the Global Terminal. Great food catered by Rali's Grill, lots of gifts and prizes raffled away, games, and music by Vanity band... not much else to ask for.

Annual Blood Drive

Thank you to everybody who participated in the Subic Chamber's Annual Blood Drive. There were 210 donors who came in, 45 were deferred due to various issues (high blood pressure, etc.), and 160 who successfully made the donation. Big thanks to the Philippine Merchant Marine Academy (PMMA), SBMA's Fire Department, and Lindbergh for coming in with the biggest contingents of donors. There were also around 50 volunteers, from nurses to doctors, who helped out.

The Chamber also wishes to thank the sponsors of the event including Rose Baldeo of Global Terminal, Raul Peralta of Rali's Grill, Brent School, and the Rotary Club of the Freeport Zone.

For detailed information and to view photos taken during the Blood Drive, please visit the Chamber's Forum by clicking here.

5th Annual SBFCC Golf Tournament

The recently held golf tournament at the Mimosa Golf & Country Club was a complete success! Several companies sponsored the event and a total of 69 players participated. The weather also cooperated and was perfect that day! Click here to see the list of winners and here to see the list of sponsors. A gallery of pictures taken during the event can be viewed by clicking here (you must be a registered member of the SBFCC Forum).

SBFCC Relief Operations for Typhoon Victims

The recent typhoons that hit many areas of the Philippines wrought havoc to the lives of hundreds and thousands of Filipinos. The Subic Chamber, since early August asked for donations from its members where many good-hearted individuals and companies responded positively. Goods were purchased, repacked, and sent to Botolan, Manila, and Pangasinan. Click here to see the topics in the Chamber Forum related to the disasters and the relief operations made.

Memorandum of Understanding between SBFCC and GSBTB

The Subic Chamber and the Greater Subic Bay Tourism Bureau headed by George Lorenzana recently signed a MOU for better collaboration on improving the tourism capability of the Freeport and surrounding areas.

Subic Bay International Airport Revival Committee

The transfer of FedEx to China not only is a big blow to SBMA's income but also affected hundreds of employees who were laid off and even affected several companies that used to provide services to the courier company. To help lessen its impact, the Chamber's Business Development Committee, headed by Prof. Danny Piano, formed a sub-committee tasked to countermand the situation. The committee is composed of locators, SBMA, and various stakeholders from within and outside the Freeport. Some are members of the Subic Bay Freeport Chamber of Commerce and some are not; but that is beside the point since we are all in this together and have to work hand in hand to revive the Subic International Airport.

Picture below standing from left to right are: Paul Gan of Chungnan Textile, Louis Kuo of Subic Technics, Myra Morales of Hanafil Golf & Tour, Kenneth Peralta of SBFCC, Prof. Danny Piano, President of SBFCC, Victor Prieto of Pacific Commerce, Sammy Chou of Limech and Chairman of the Taiwan Chamber of Commerce, George Lorenzana of Mountain Woods Hotel and White Rock Resort and also Chairman of the Greater Subic Bay Tourism Bureau, Jeff Lin of SBDMC, Jimmy Chen of Limech; and sitting down are Yvette Ocampo of Jungle Joe’s World, Jean Verzosa of Subic Park Hotel and GSBTB, Baby Dela Llana of Tender Touch and Board Member of the Province of Zambales, and Michele Johnstone of Hanafil Golf & Tour. Bottom picture also includes Dr. Teresa Yap of GSBTB, Charles Davis of Seahorse Tours, and Mar Santos, Rey Guevarra, Zharrex Santos, Cel Racel, and Nelia Diloy of SBIA.

Mixer Nights

Dozens of name cards are always exchanged and contact info shared between members. Friends, old and new, enjoy these evenings. Many members of the Chamber are not only businessmen looking for business connections, but have cultivated real friendships with other members as well.

Message from the President

Anatomy of a Minimum Wage Increase

P75.00 per day! This is the minimum wage increase the labor sector in the Central Luzon area petitioned more than a month ago. Too high! The employer sector countered. So what about it? How does the increase in minimum wage in the Philippines gets to be discussed, negotiated, and finalized?

In the grand scheme of things, the petition for a wage increase would normally be coming from the labor sector. This is not always the case, however. The government has initiated petitions on its own in the past. But the employer sector never did. Not that companies would avoid this like the plague; in fact, companies, especially those making money, do provide management-initiated salary increases to their workers. It is part of supply and demand after all. If you want to keep your talented workforce, you have to provide salaries and benefits that would prevent your competition from pirating them—within the bounds of your resources, of course.

The problem is more on the lower rungs of the labor force; like those working in assembly-line manufacturing, agriculture, construction, and retail/service establishments not requiring high-level skills. These are the areas where the minimum wage rate gets to have its greatest effect and where the wage fixing gets to be contentious.

The granting of minimum wage increases used to require, not acts of God, but acts of Congress or acts of the President. Since the enactment of RA 6727 also known as the Wage Rationalization Act, however, Regional Tripartite Wages and Productivity Boards (RTWPB) in each of the sixteen regions of the country became the wage-setting bodies. A petition would be submitted to the RTWPB. The Board is composed of one representative each from DOLE, NEDA, and DTI; and two representatives each from both the workers and employers sectors.

What are the criteria for a petition? There are ten, categorized into the needs of workers and their families, the capacity to pay by employers, comparable wages in other regions, and requirements for national development. From past years, it is almost always the consumer price index (CPI) that is used as the major basis for the increase.

What is a CPI? Simply put, it is an estimate of the average price of a specific list of consumer goods and services purchased by households. The same set of goods and services from two years ago would normally be more costly this time around. The CPI is usually the magic number that dictates the positions of the various parties. The labor sector wants a wage increase much higher than can be calculated from the CPI, the employer sector wants it lower.

Last July 21, the Mitsumi Workers Union submitted a petition for a P75.00 increase. The RTWPB, after reviewing the petition, then sent letters to various organizations, including the SBFCC, requesting participation in an employers’ consultative meeting. On August 24, various chambers of commerce and other organizations in Central Luzon met to discuss the appropriate minimum wage increase for the area. Through voting, the majority agreed to a P12.00 increase to the daily Cost of Living Allowance (COLA) but that the minimum wage rate, implemented last June 2008, will stay as is. A formal opposition paper from the employer sector will later be submitted to the RTWPB.

Understandably, many from the manufacturing sector, hit hard by the global economic crisis and reeling from lower labor rates of competition from other countries, want a lower increase—P5.00 specifically. They did not get the majority vote, however, so P12.00 it is. As an aside, other regions already approved P10.00 to P22.00 increases.

So, what happens to the companies that cannot afford the wage increase? Fortunately, there is an option. Exemption may be applied by distressed establishments, new business enterprises, retail/service establishments employing not more than ten workers, those adversely affected by natural calamities, and other establishments that can prove strong justifiable reasons for exemption; or companies who simply want to take a crack at it.

On September 20, a public hearing for the original labor sector petition will be conducted by the RTWPB. Depending if a compromise can be reached, more public hearings may be held. In the end, it will be the RTWPB who will make the final recommendation and it has to be done within 30 days from the date of the last public hearing. The resulting Wage Order can be appealed by any aggrieved party within 10 days; otherwise, the Wage Order becomes effective 15 days after it has been published in a newspaper of general circulation.

What happens next? Well, employers pay their workers more and employees get what is more or less higher wages that are more in line with the current peso purchasing power. It will likely be a range from P12.00 to P18.00.

One important thing to take note of is that the RTWPB’s wage-setting function is confined to minimum wage and only to the private sector (the government, using our tax money, gets to set their own salaries, see?). It does not have the power to grant across-the-board increases; not to those with salaries higher than minimum wage. Companies will be in compliance already as long as all their employees have wages equal or higher than the minimum wage, which could mean that they may give increases only to those below the minimum wage.

In practice, however, an increase in minimum wage creates wage distortions on salary levels within a company. Because of this, a wage distortion formula is used. The result is that everybody gets an increase but the higher the existing salary, the lesser the amount of the increase.

And so it will be… until the next petition for minimum wage increase, which cannot be earlier than a year out from the date of this year’s implementation.

Prof. Danny J. Piano

President

Click here for Archive of President Messages

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