Philippines allays fear of government workers over Rationalization Plan

May. 31, 2007

MANILA — Malacanang assured today government employees whose tenures will be affected by the implementation of Executive Order 366 or the Rationalization Plan that they will receive the full benefits due them.

In his weekly press briefing in Malaca?ang this afternoon, Executive Secretary Eduardo Ermita said the Department of Budget and Management (DBM) will set aside enough funds to cover the benefits due government workers who will go on early retirement.

Theres no reason for them to worry that they will not receive their benefits, he added.

Ermita said the DBM is in the process of preparing the necessary for the implementation of the government Rationalization Plan, particularly the funds needed to pay the employees affected by EO 366 to enable them to invest their retirement benefits in small and medium-scale enterprises.

On the other hand, state workers affected by the Rationalization Plan but who prefer to continue their employment will be “pre-positioned to other offices within the government,” he added.

Ermita said EO 366 was conceptualized to trim down the bureaucracy and “remove redundancies and functions (in the executive department) and to re-deploy personnel from one agency to another without diminution of their salary and their position.”

The Malacanang official said that 81 agencies — 19 under the executive department, 29 under other executive offices, and 33 government owned or controlled corporations (GOCCs)) — are affected by the Rationalization Plan.

Among these agencies are the Career Executive Service Board, the Civil Service Commission, Housing and Urban Development Coordinating Council (HUDCC), National Commission on the Role of Filipino Women, National Early Childhood and Development Coordinating Council, Local Water Utilities Administration, and National Tobacco Administration.

Under the Rationalization Plan, 7,625 personnel currently employed in the 81 affected agencies will be trimmed down by 2,584 to 5,041.

Ermita pointed out that the government is doing everything possible to ensure that EO 366 is implemented smoothly and the affected employees would get a fair shake.

“Walang dapat ipag-alala ang mga affected personnel especially dito sa Office of the President, so at least alam natin na ang EO No. 366 or the Rationalization Plan is being implemented in a manner that will not unnecessarily displease, displace or cause inconvenience” to those concerned, he said. (OPS) (

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