Press Release
August 23, 2007

BILL ENTITLES WORKERS TO BONUS IF
THEY AGREE TO MAINTAIN INDUSTRIAL PEACE

Employees in private firms will be entitled to an incentive bonus if they agree to maintain industrial peace, making it possible to boost productivity and profitability.

This is contained in Senate Bill 1481, introduced by Minority Leader Aquilino "Nene" Q. Pimentel, Jr. (PDP-Laban) in a bid to augment the income of workers while enhancing the viability of industrial enterprises.

The bill provides for the setting up of a Labor-Management Cooperation Committee, composed of representatives of management and the unorganized employees.

The committee will implement an incentive program whereby the employer agrees to grant proportionate salary bonuses to employees based on production for the past three consecutive years, cost, manpower and similar variables in exchange for the employees' commitment to refrain from strikes and to resolve industrial disputes through peaceful methods.

As an incentive to the employer who enters into this deal, it will be entitled to tax deduction, which shall be equivalent to double the amount of the bonus granted to the employees.

Manpower training and special studies abroad shall be granted to qualified employees as part of the incentives under the program.

The bill defines industrial peace as "the state of labor and management relations wherein the parties, through the Labor-Management Cooperation Committee voluntarily agree, by at least a majority of all its members, not to resort to strikes, lockouts and other similar means that will disrupt operations of the business enterprise." Exception to the agreement against strikes are cases of unfair labor practice.

Under SB 1481, the secretary of labor and employment and the commissioner of the Bureau of Internal Revenue are tasked to promulgate the rules and regulations to implement the provisions of this measure.

However, any person who shall make any fraudulent claim under this Act, regardless of whether a tax refund has been granted, shall be penalized with an imprisonment of not less than six months but not more than one year or a fine of not less than P10,000 but not more than P20,000 or both, without prejudice to the filing of other complaints for other offenses that may be committed.

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