More reactions, concerns on labor benefits, K+12 and Kasambahay Law

Regular contributor Manuel Cantos has a number of things to say about views expressed by other readers that have had their letters published in this column. On the Rey Dyquiangco’s proposals published in the May 9 column, he writes:

“Re economic labor zones, wages should be determined by productivity. At present, we have a National Wages and Productivity Commission (NWPC), which is probably an oxymoron, since annual wage order increases had nothing to do with productivity.

“Under the NWPC’s annual wage orders, you pay the same increase whether your worker is more productive, less productive or unproductive, as done in China. In sum, the economic labor zones should be outside of the jurisdiction of the NWPC.

“Re splitting the DOTC into the Department of Transportation (DOT) & Department of Communications and Information Technology (DCIT), the DOT should absorb the Department of Tourism since 30 to 50 percent of tourism is transportation anyway. But please do not let lawyers lord it over there.

“Re clustering agencies, in Tokyo, Taipei and Kuala Lumpur, national government offices are adjacent to each other to everyone’s benefit, including the government. So it can be done.”

On being pro-labor

And in another email, Cantos commented on the letter of Employers Confederation of the Philippines (ECOP) president Ed Lacson. Here is Cantos’ letter:

“Per the website of the National Wages and Productivity Commission (NWPC), there are 11 criteria grouped into four major categories for wage setting. The four major categories are: needs of workers and their families, capacity to pay of employers/industry, comparable wages, and requirements for national development.

“Meanwhile, the 11 criteria are: demand for living wage, consumer price index, cost of living, needs of workers and families, improvement of standard of living, prevailing wage levels, fair return on capital and pay of employer, productivity, need to induce industry to invest in the countryside, effects on employment generation and family income, and equitable distribution of income along imperatives of economic social development.

“Thus, six of 11 (55 percent) are based on labor, two of 11 (18 percent) on employer, and three of 11 (27 percent) on national development.

“Curiously, productivity is listed under capacity to pay of employers together with fair return on capital. Inflationary effect is measured three times (consumer price index, cost of living and improvement of standard of living). That’s three of the six pro-labor criteria.

“Also, demand for living wage and needs of workers and families are one and the same. Thus, the dice is really loaded in favor of labor.

Impediment to countryside growth

“Let’s focus on the national development category. How do you induce industry to invest in the countryside when NWPC also mandates annual increases, albeit lower than for NCR? This means that the employer has to earn over and above wage and other overhead plus variable expenses annually, too.

“Can the employer achieve that? Do the annual wage increases generate employment or not? Equitable distribution of income depends on employment generation, which, in turn, depends on industry investing in the countryside. 

“Thus, no investment, no employment. No employment, no equitable income distribution.

“What ECOP needs to prove, based on surveys over a number of years and using the national development category, is that annual wage increases are disincentives to countryside investment, raising unemployment (if more businesses are closing than opening) and widening, instead of narrowing, equitable income distribution.”

K+12 and Kasambahay Law

Lastly, JJ So, another reader, shares his comments on the last column on K+12 and a previous other on the Kasambahay Law. Here is his comment.

“I share your concerns about quality and funding of the extra two years. Our kasambahay told me that the DepEd has a program called ALS, alternative learning skill. She told me that the target students are dropouts. They are taught to speak well in English. The market: call centers. I do not know about the veracity of her information.

“In this connection, I would think that the extra two years be aimed at making students more computer literate and speaking better English.

“I was told that the computer is just a tool. The user should have the knowledge (logic, math and good composition skills) and good command of the language used such English, Chinese, etc.

“I was also told that workers in the US call centers are not college graduate. They could be high school graduate and trainable to meet the centers’ requirements. Incidentally, I read somewhere that the Philippines is preferred over India for call centers. One of the reasons is Filipino speakers are neutral and familiar with American idioms. The India speakers are heavily British accent and familiar with British idioms.

“I hope that the curriculum for the extra two years considers the above-mentioned circumstances.

“In my case, I hire our kasambahay through recruitment agencies. I learned that six months period is a cutoff for both the recruited and the employing housewife to save on agency fees. In short, the recruited saves fee if she leaves within six months and the housewife changes maids within that period.  I wonder if my case is covered by the implementing rules and regulations.

“On the issue of SSS, etc. reporting requirements, I would imagine the following scenario: the housewife helps the kasambahay to fill out the forms and other requirements and files these forms with the relevant government agencies. She remits the premium to the authorized banks. The agencies have a special lane for kasambahay inquiries.

“I assume that the housewife can do the above-mentioned steps more effectively and efficiently than the kasambahay. At the same time, their household chores are not interrupted.”

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