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Tindahan ng Unyon

December 15, 2010


The second Banner CNA Program involves the basic necessities of DepED-NEU members: food and other household needs.

DepED-NEU aims to provide the needs of members and other employees and prevent them from resorting to borrowing cash from loansharks just to be able to buy what their family needs.

The TINDAHAN NG UNYON is simply a bulk-buying arrangement with bridge financing.

By buying in bulk, the union takes advantage of the economies of scale — meaning the more you buy, the bigger the discount and the lower the costs will be.

Bulk-buying reduces the advertising and marketing costs of the suppliers. The savings in costs are, in turn, passed on to the buyers. However, since suppliers are only able to pass on their savings if purchases are made in cash or cash equivalents, the TINDAHAN NG UNYON makes use of an available low-interest bridge financing facility.

The TINDAHAN NG UNYON, thus, aims to:

1) Stretch the value of the members’ income by enabling them to buy more commodities with the incomes that they currently make;

2) Ensure that members’ get more value for their money by guaranteeing the quality and the continuous supply of the available commodities that are for sale; and

3) Remove the need for members to borrow from usurers and loansharks by maximizing the value of the discounts that they get with low-interest bridge financing. For example, if the discount is 15 percent and the bridge financing rate is eight (8) percent per annum, then members still enjoy a net discount of seven (7) percent; and

4) Members get additional benefit by accumulating points with each purchase. These points are convertible to the value of goods that they need as additional discounts or used to buy the commodities they need.

For the TINDAHAN NG UNYON, DepED-NEU has partnered initially with SM Supermarket as the supplier. Negotiations are underway with Robinsons’ Supermarket and Gaisano.

The Government Service Insurance System (GSIS) will provide bridge financing at an annual effective interest rate of only eight percent.

Under the program, members and other employees in a division are asked to pick the foodstuffs, groceries and their other household needs in a checklist to be supplied by DepED-NEU. The checklists include an Authority to Deduct addressed to the accounting office/ payroll division/ paymaster/ cashier in favor of GSIS.

These consolidated checklists will be submitted to SM Supermarket for confirmation stock availability and issuance of confirmation of sale to be submitted to GSIS for financing in the form of loans to members. GSIS pays SM Supermarket directly which then delivers the ordered goods and packaged per checklist.

The members pay GSIS directly in monthly installments through salary deduction over a period of three to six months. Therefore, the effective annual rate will only be four (4) percent for a six month-loan and two (2) percent for a three-month loan.

Anything that can be purchased from SM Supermarkets, including rice, sugar, raw meat, fish, cold cuts, grocery items, shoes, clothes, kitchen utensils, furniture and appliances are eligible under the TINDAHAN NG UNYON.

Purchases may be for personal use or for the members’ or employees’ retail store livelihood business.

The TINDAHAN NG UNYON Program will be implemented in the First Quarter of 2011.

For inquiries, please call Atty. Domingo B. Alidon thru (02) 637-1242, (02) 633-7247 or (0915) 302-5039 and Gerry Saudi thru (02) 546-8403 and (0907) 548-4818.