Instead of a wage hike for workers, how about
mandatory profit-sharing?
A
lawmaker has proposed that all companies institutionalise profit-sharing with
their rank-and-file, “so the economic improvement will trickle down to daily
wage earners.”
Buhay
party-list representative Lito Atienza said his proposal would require
profitable firms to give a share of their earnings to their employees, rather
than raise wages.
Under
House Bill No. 4445, or the proposed Profit Sharing Act of 2014, business establishments
that make a profit for the year shall distribute 10 per cent of their net
income to all their employees, both regular and contractual.
The
profit-share shall not affect the regular salary, 13th-month pay and other
benefits enjoyed by the employees and will also be taxable.
The
bill is pending in the committee on labour and employment chaired by Davao City
representative Karlo Alexei Nograles.
The
bill defines profit sharing as “various incentive plans introduced by business
that provide direct payments to employees which depend on the company’s
profitability, in addition to salaries and bonuses.”
“The
proposal seeks to help our countrymen benefit from the economic improvement by
making sure it trickles down to our daily wage earners. It might have more
far-reaching effects on labourers and workers, and would encourage them to work
harder for the successful operation of their companies,” Atienza said.
He said
it was high time that minimum wage earners benefited from the improving
economy, as seen from such indicators as the recent credit upgrade by Standard
& Poor’s.
Atienza
noted that while the credit rating upgrade was a welcome development for the
country’s overall economic growth, “poverty still prevails among a majority of
Filipinos who have yet to feel the effects of this improvement in their
everyday lives.”
DJ Yap
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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