MBC urges firms to assist workers, support SMEs

MANILA, Philippines — Amid President Duterte’s call to businesses to assist workers affected by disruptions in livelihood due to  the coronavirus disease 2019 or COVID-19, the Makati Business Club (MBC) is urging its members and other companies to do their part by granting loans or advancing the 13th-month pay to employees, and to provide support to small and medium enterprises (SMEs) by giving concessions on loan and rent payments.

At the same time, the business group is calling on government to extend the deadline for tax payments and to implement other measures to help employees and businesses hit by the impact of the COVID-19 pandemic.

“We support President Duterte’s call for companies to grant loans or early bonuses or 13th-month pay to employees who may need the money to support family members who have lost their jobs. This is especially critical for daily paid workers,” MBC said.

MBC said it is also encouraging members and other businesses to take other steps to allow employees to comply with the enhanced community quarantine in place in Luzon until April 14, to prevent the spread of COVID-19.

These steps include adopting aggressive work-from-home arrangements, pro-active social distancing and other precautionary measures for employees in the workplace as well as expanding the paid sick leave for regular employees and ensuring sick employees go on sick leave.

Apart from providing assistance to workers, MBC also urged members and other businesses to provide support to SMEs and their employees to weather the financial strain brought by the pandemic.

“To that end, we call on our members and other businesses to give small and medium enterprises concessions on payments for loan payments, rent, utilities, supplies and others,” MBC said.

While MBC supports the measures being taken by government to fight COVID-19, the group said review and revision would be needed to ensure people can continue with their livelihood and receive assistance, and food and other basic goods would be delivered in a timely manner.

Last Monday, Duterte expanded the community quarantine in Metro Manila to include the whole of Luzon.

Under the enhanced community quarantine, mass transportation as well as work are suspended except for those engaged in production or provision of food, medicine and health, banking and finance, public utilities and mass media.

Even as businesses are doing their part, MBC said government support would still be needed by employees, particularly those displaced, as well as by enterprises.

“We call on the government to explore a quick way to give laid-off employees unemployment benefits or loans, especially if they are not entitled to this from SSS (Social Security System) or elsewhere, including contractual and informal workers. This is both humanitarian and good for the economy which needs Filipinos to spend to limit the downturn,” the group said.

As a form of support to businesses, MBC is also calling on government to extend the April 15 deadline of filing and paying of income taxes.

The group said it welcomes the Bangko Sentral ng Pilipinas’ extension of financial and regulatory relief to banks, other financial institutions, and borrowers, as well as Finance Secretary Carlos Dominguez’s plan to boost borrowing by as much as P90 billion to maintain planned spending levels.

In addition, MBC supports Albay Rep. Joey Salceda and Marikina Rep. Stella Quimbo’s proposals for P190 billion and P108 billion of stimulus spending, respectively.

“We ask the administration and Congress to pursue these and other measures to help displaced employees and struggling businesses, including reallocating unutilized discretionary funds or other budgets for funding high priority social needs in this emergency. We are one with other business organizations in being ready to assist the government in any way,” the group said.