Security of tenure bill seen to affect investments

MANILA, Philippines - Businessmen warned the government yesterday that the passage of the Security of Tenure bill will further deter investments and expansion of businesses in the country.

“We are the only ones who have this kind of legislation. This will further deter investments and expansion of businesses in the country,” Edgardo Lacson, president of the Employers’ Confederation of the Philippines (ECOP) said in an interview.

According to Lacson, criminalizing termination of workers is an anti-business practice and will encourage even existing businesses here to transfer to our ASEAN neighbors like Vietnam and Thailand.

 “There will be less employment and the informal sector will grow bigger,” Lacson said. Currently, he estimated that the labor force is at 38 million. Of this, only 16 percent is classified as part of the formal sector. The six million which is part of the formal sector is further reduced in half because the other part is supervisory level.

 This means that only three million laborers will be protected by the Security of Tenure Bill that is currently lodged at the House of Representatives. “Do we want to protect the three million or do we want more opportunities for more people,” Lacson asked.

 Lacson said that Congress has already consolidated the eight Security of Tenure Bills. “We are the only country that has that bill. Imagine any violation of the clause and we can go to jail for two years.”

 “It is easier to divorce your wife than to dismiss your workers under their proposed bill,” he noted. Lacson said that this bill will not help people get jobs because no new work will open up thus making it more difficult for fresh graduates to get jobs. “This is the beginning of the contraction of the labor sector,” he added

 Lacson further said that this will discourage small entrepreneurs from investing. Lacson said that the government is trying to convince overseas Filipino workers (OFWs) to invest their earnings in small businesses. However, criminalizing normal business practices like firing workers can deter OFWs from going into business.

Lacson further noted that subcontracting is a global practice that needs to be adapted in the Philippines. “We are certain that once this (the bill) is approved, the business sentiment will reverse and there will be little investment in businesses,” he warned.