Bizmen prefer no layoffs than advance 13th month

CEBU, Philippines —  The business sector in Cebu, of which majority is small and medium enterprises (SMEs), prefers to avoid layoffs as opposed to releasing a portion of the 13th month pay in advance amid the global pandemic.

“It will depend on the business sector if owners can afford it. For SMEs who have limited financial capabilities, the priority is to avoid layoffs,” said Mandaue Chamber of Commerce and Industry (MCCI) president Steven Yu.

President Rodrigo Duterte has called on the business sector to give even a portion of employees’ 13th month pay to cushion the impact of community quarantine imposed by the government to stop the spread of coronavirus disease (COVID-19).

“It is also not very clear yet under what circumstances should employers give out 13th month in advance,” Yu said.

Business leader Philip Tan, who is also the past MCCI president, said giving out a percentage of an employee’s 13th month pay largely depends on the [financial] capacity of a company.

“It all depends on the capacity of the company, during these challenging times, if they still are financially liquid to absorb it. Our people advised to shut down our machines for maintenance so that they will still be paid for the period when this situation will calm down,” Tan said.

Likewise, Cebu Chamber of Commerce and Industry (CCCI) president Felix Taguiam agreed with Yu and Tan saying, giving out of a portion of 13th month pay depends on a company’s financial capability.

“Although, this is possible,” he said.

While Duterte’s statement was addressed to companies based in Luzon where enhanced community quarantine is implemented, the same may be applied to businesses in Cebu considering that the city was also placed under one month general community quarantine.

Music school owner Pia Chiong Quisido said giving out a share of the mandatory 13th month pay to her music coaches is an option, but she considered it as last resort.

“As much as possible my coaches would prefer to still be able to enjoy their 13th month pay during Christmas time,” said Quisido, who owns a music school.

“Worst case scenario, i can also make them avail of their remaining paid leaves for now. Giving 13th month pay is considered as last option,” she added.

Islands Group of Companies chairman Jay Aldeguer said his company and its subsidiaries are currently discussing any alternative with regards to the government’s call to employers to help employees cope with crisis, at least financially.

“We are aware of this and have included it in our discussions,” said Aldeguer referring to the option of giving part of employees’ 13th month pay.

Earlier, CCCI past president Virgilio Espeleta said that at the height of uncertainties brought about by the contagion’s threat to economy, Cebuano business sector vowed to keep jobs as much as they can.

“Do not fear. There’s no layoff,” Espeleta said.

CCCI also urged its member companies to keep employees amid bleak business condition, and make use of the downtime for trainings, and other activities to enhance skills to prepare for the recovery.

In a position paper, CCCI officially called its members to continue operating even at break- even levels or subsidize operations to keep the business going. That businesses must exhaust all venues to keep their workers in the payroll, instead of resorting to layoffs; e.g. availment of leave credits, allow leave without pay (LWOP), shorter workweek, training or upskilling sessions (allowances will do during training days), utilize people on special projects, research, maintenance or renovations.

“We encourage business owners to voluntarily slice profits or dividends for the sake of survival. Likewise, they should be ready to implement strategies; e.g. thorough health checks and monitoring, and implement precautionary measures to protect their workforce while ensuring continuity of operations,” reads CCCI’s memorandum addressed to its members. FPL (FREEMAN)