The role of government in relation to business
The government of President Rodrigo R. Duterte, by all appearances, is focused on too much control and even domination of the business sector. Increases in taxation, too much interference in business decision-making, more regulations that limit flexibility, and heightened enforcement of laws are making businessmen uncomfortable, and even pushing a good number of investors to rethink their business plans and strategies. Today, I am going to speak in the Manila Hotel before businessmen and HR managers and my message is clear: Business should assert itself and be vigilant in the defense of management prerogatives in the face of too much aggressiveness on the part of government regulating agencies.
Tomorrow, I shall again speak before a bigger crowd of service and job contractors who are deeply concerned about the DOLE regulations on job contracting and service contracting. The DOLE has issued Department Order No. 174 earlier in the second quarter this year. This is being followed by Department Order No. 183 which took effect just last month. The first one will make it very, very hard to outsource work and will practically force businessmen to absorb the workers of agencies and contractors as regular employees, thereby, increasing labor costs and more importantly, limiting the flexibility of management in the face of an increasingly competitive business environment. The second will make labor inspection very frequent and more intruding into the realm of business decisions and management prerogatives.
We have always supported the president and his government in his many advocacies, especially the war against drugs, crime, and corruption. But, with all due respect, the current activism of DOLE administrators, to our mind, is bound to result to destruction of job opportunities as investors and businessmen are transferring their operations to other ASEAN countries. Singapore, Malaysia, Indonesia, and Thailand are not pushing the business owners and managers to very tight and difficult situations. Even countries like Vietnam, Myanmar, Laos, and Cambodia are not outlawing contractualization and outsourcing. The governments there allow business to make decisions without or with least interference from the authorities.
Of course, it is important to stress that businessmen should not cheat their workers on wages and benefits. They should cover them with social protection under the SSS, PhilHealth, PAG-IBIG and workmen's compensation in case of diseases, disability, and death. Employers must be compliant with occupational health and safety standards. But then again, government must trust the business sector to be imbued with corporate social responsibility and civic-mindedness. The government should not look at business with suspicion and accusations of guilt. Businesses create jobs and provide livelihoods to people and communities. Businesses pay taxes and tariff duties, and remit millions to the government financial institutions. Businesses are funding the government. Therefore, government should not look at businesses as enemies of the state. The role of government should not be to control, to destroy, or to weaken business but to make business strong, so that the nation becomes stronger.
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