Gloria, son push yearly productivity bonus for private workers

MANILA, Philippines - Former president and now Pampanga Rep. Gloria Macapagal-Arroyo has filed a measure that will provide an annual productivity incentive to all workers in the private sector.

"Since the labor sector is a primary social economic force, the State is mandated by the Constitution to protect the rights of workers and promote their welfare," said the former president and her son, Camarines Sur Rep. Diosdado Macapagal Arroyo

In filing House Bill 1376, the Arroyos noted that current labor and management relations are "characterized in general as confrontational" when discussing and settling basic and significant issues affecting wages.

"As a result, the productivity expected both from labor and management suffers and results in a lower level of competitiveness which threatens survival of an enterprise," they said.

The younger Arroyo said the bill granting "productivity incentive bonuses" to laborers in the private sector is a recognition of their indispensable contribution to the success of business enterprises.

"Likewise, it seeks to promote and provide measures for the mutual benefit and industrial harmony between labor and management," he said.

According to the proposed measure, all workers in the private sector, regardless of their employment status, shall be granted an annual productivity incentive bonus which shall be equivalent to not less than 10 percent of net profits before taxes gained by any company or business establishment for every fiscal year.

The employee should have worked for at least one month during the calendar year to be qualified for the annual bonus, the bill said.

It explained that if the employee worked for only a portion of the year, the productivity bonus shall be pro-rated.

The proposed statute does not cover government-owned and controlled corporations with original charters, managerial employees, house helpers, and non-resident aliens.

Also not covered are workers in retail establishments with not more than five workers, employees in companies or enterprises undergoing liquidation, and those employed in new business enterprises.