Manila  - The International Committee of the Red Cross (ICRC) urged Muslim militants in the southern Philippines to spare the lives of three Red Cross workers amid a threat to behead one of the hostages on Tuesday.

The Abu Sayyaf rebel group has given the Philippine government until Tuesday afternoon to meet a demand to pullout all soldiers, policemen and militiamen from practically the entire Jolo island, 1,000 kilometres south of Manila.

Manila /Geneva - The Red Cross on Monday issued an emotional plea for the lives of its staff members being held hostage by Abu Sayyaf rebels in the Philippines who threatened to behead one of the aid workers.

"Our message to Abu Sayyaf is: Please spare and release Mary Jean, Eugenio and Andreas," Jakob Kellenberger, the president of the Geneva-based International Committee of the Red Cross (ICRC) said in a statement.

Manila - Muslim militants holding captive three Red Cross workers in the southern Philippines have issued new demands for the release of one hostage, an official said Monday.

Interior Secretary Ronaldo Puno said the Abu Sayyaf rebels warned they would behead one of the hostages on Jolo island, 1,000 kilometres south of Manila, on Tuesday afternoon if their new demands were not met.

Manila - Two soldiers were killed in a clash with Muslim secessionist rebels in the southern Philippines, an army spokesman said Monday.

Lieutenant Colonel Romeo Brawner said the fighting erupted Sunday when patrolling troops encountered 10 Moro Islamic Liberation Front (MILF) rebels in Alamada town in North Cotabato province, 960 kilometres south of Manila.

Brawner said government troops also lost an M-14 assault rifle to the rebels, who fled to the mountains after nearly 30 minutes of fighting.

Manila - The Philippines and Japan on Monday signed nine grant contracts worth 660,000 dollars for various education, health and agriculture projects in conflict areas in the southern region of Mindanao.

Philippine presidential peace adviser Avelino Razon and Japanese Ambassador Makoto Katsura signed the contracts for the projects under the Japan-Bangsamoro
(Muslim nation) Initiatives for Reconstruction and Development.

Manila  - More than 100,000 workers in the Philippines have been laid off or have suffered wage cuts due to the global economic crisis, a senior labour official said Monday.

Labour Undersecretary Rosalinda Baldoz said 109,529 employees of companies in the Philippines have been affected by the crisis since October last year.

Baldoz said 11,574 workers were permanently laid off, while 38,806 were temporarily laid off and 59,149 have been forced to accept wage cuts after being placed on flexible work arrangements.