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Employers seek leeway to tweak wages


Employers’ group says flexibility needed in times of economic difficulty The country’s largest employer group is poised to issue a resolution today calling for changes to the Labor Code, including deleting a clause that bars companies from cutting workers’ benefits. The Employers Confederation of the Philippines (ECOP) will present its recommendations to President Gloria Macapagal-Arroyo at the closing ceremony of the 31st National Conference of Employers, which opened on Tuesday. The proposal will also be submitted to the next Congress, which will take office this July, ECOP President Edgardo G. Lacson said. The group’s call for changes to Article 100 of the Labor Code, which prohibits removing or cutting benefits, comes a day after it opposed a wage hike this year at a hearing held by the Metro Manila wage board on a labor group’s P75 across-the-board wage hike petition. Specifically, the ECOP wants the law revisited "in relation to Article 100 of the Labor Code, realizing that employers must be given the flexibility and leeway to adjust wages, especially in times of economic difficulty." Employers should be given the "prerogative to consult with their own workers on the need to realign compensation and other benefits in order to remain resilient, operational and prevent job losses," it said in a three-page resolution released yesterday. The ECoPalso wants: • Amendments to Articles 106 to 109 of the Labor Code, or the provisions on contractual work and subcontracting, as well as implementing rules contained in Labor Department Order 18-02, which the group said would "recognize the need for more dynamic and flexible work arrangements to promote and enhance business efficiency and productivity, especially... business process outsourcing, which has been the thriving and most promising sector in the economy"; • A repeal of the night work prohibition for women under Article 130 of the Code, to take into account the "role that women play in nation building, as well as growth and development in the economy." • The implementation of policies that will ease the cost of doing business, such as "dismantling restrictions and limitations on investments and businesses by minimizing licenses, fees, charges and permits; and by cutting the number of days that entrepreneurs may open an establishment, at most within the global average of 30 days." • On the issue of labor justice administration, the National Labor Relations Commission (NLRC) should resolve backlogs "at the soonest time," and that labor cases be settled within 90 days. "[The NLRC must] promote and enhance alternative modes of labor dispute resolution including conciliation, mediation and voluntary arbitration, ensuring that the cost of such modes are reasonable and viable for both employers and workers"; • On governance, the next administration must "enforce, apply and interpret the laws with consistency; promote transparency in terms of information, government transactions and undertakings; ensure people’s participation in tripartite consultations, and in the formulation and implementation process; and guarantee public officials’ accountability for their behaviors and actions." "We need these reforms in order to align the Philippine business and labor market with the changes in market systems and labor relations," ECoP Director Alfonso G. Siy said in the opening remarks. He argued that productivity could be improved by "allowing employers to discipline workers rather than spoiling them since our Labor department and labor policies are always pro-laborers because we are pro-poor and very political." "But to protect them is to keep their jobs, to keep their jobs means a proper way to guide them to be more productive," he added. Labor Secretary Marianito D. Roque said he would reserve comment on the ECoP’s resolutions until these are formally submitted. Speaking at the conference, Labor Undersecretary Rosalinda D. Baldoz meanwhile vowed to "facilitate and expedite the process of resolving labor cases." International Labour Organization Director Linda Wirth said both the government and businesses must invest in human resource and capital to be competitive vis-à-vis other Asian economies, as well as review the skills needed by various sectors to avoid work mismatch. She also cited the importance of continuous dialogue among industries, the government and workers in upholding reforms, particularly on issues of skills, productivity and social protection. "We call reforms as modernization. Reforms are needed if we want to move forward in line with globalization because if these go to Congress or someone else, there won’t be any collective bargaining agreement that will happen," Wirth said on the sidelines of the conference. Social Security System President and Chief Executive Officer Romulo L. Neri, who delivered the keynote on behalf of Vice-President Manuel "Noli" L. de Castro, said the productivity issue could be addressed by investing in workers’ health, education and training. — Ma. Aizl Camille B. Cabarles, BusinessWorld

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