Workers seek public disclosure of delinquent employers

MANILA, Philippines - The country’s largest labor group yesterday sought public disclosure of a list of more than 160,000 delinquent employers who failed to remit government-mandated monthly contributions to the Social Security System (SSS).

Trade Union Congress of the Philippines (TUCP) issued the call as President Arroyo prepares to sign into law a bill condoning some P94-billion worth of penalties slapped on 164,111 delinquent employers that failed to remit contributions to the SSS.

TUCP secretary general and former senator Ernesto Herrera said SSS should make the list public since these employers are likely violating other laws and must therefore be investigated.

“Employers not remitting the mandatory SSS contributions are several times more likely to be violating other laws as well, including the Internal Revenue Code, or not making the required payments to the Philippine Health Insurance Corp. and the Pag-IBIG Fund,” TUCP secretary-general and former Senator Ernesto Herrera.

By not remitting contributions to the SSS, Herrera said, the employers are in effect robbing workers of their hard-earned money and depriving their dependents of protection.

Herrera added that the SSS-delinquent firms also pose “dishonest and unfair competition” to business rivals dutifully paying their dues.

“If you have two shops providing the same service or selling the same product, and one of them is not paying the SSS dues, then that shop is competing wrongfully through grossly unethical business conduct,” Herrera pointed out.

The SSS recently filed court charges against 1,623 employers, mostly for failing to remit their employees’ contributions.

The erring companies violated provisions of Republic Act 8282, the Social Security Act of 1997, for non-remittance of contributions, failure to register, and refusal to present employment records.

Under the law, contributions remitted to the SSS should be paid within the first 10 days of the following month.

If any contribution is not paid to the SSS as prescribed, the employer would have to pay besides the contribution a penalty of three percent per month from the date the contribution fell due until paid.