Press Release
January 30, 2009

Jinggoy forwards specific recommendations for workshop on
employment and recession

Senate President Pro Tempore Jinggoy Ejercito Estrada has forwarded specific recommendations that could be adopted in the "multi-sectoral workshop on the effects of the global economic crisis" today at the Occupational Safety and Health Center in Diliman, Quezon City.

The workshop, proposed by Estrada, is spearheaded by the Department of Labor and Employment (DOLE) to craft "action plans" amidst the laying-off of Filipino workers from overseas and local companies severely affected by the crisis.

"This workshop aims to assess the impact of the global economic crisis to the local economy and the labor force, and formulate deliverable policy measures and services to assist affected stakeholders," Estrada, chair of the Senate Committee on Labor, Employment and Human Resources Development, and the joint Congressional Oversight Committee on Labor and Employment (COCLE), said.

He said, "because of the magnitude of the problem at hand that thus needs immediate actions, I am favoring specific concrete and doable measures which could be explored and adopted in the workshop."

Estrada's specific recommendations include:

  • Government's granting of a "special package of fiscal and non-fiscal incentives" to companies that will retrain and hire the affected OFWs and other Filipino workers, and

  • Implementation of a barangay-based retraining and hiring program utilizing the network of village enterprises assisted by the national government thru Republic Act 9178 also known as the Barangay Micro-Business Enterprises (BMBE) law.

Estrada said the "incentives could be in the form of tax credits, tax exemptions, income tax holidays, duty-free importation of raw materials and equipment," or a "combination" of these and other such motivation measures.

"With these incentives, local companies - even those that had otherwise decided to freeze their hiring of employees due to the economic slowdown, would be able to absorb additional personnel from the affected workers," Estrada said, adding: "This measure could help retrenched Filipino workers find new jobs on the one hand, and on the other hand, help our local enterprises weather the effects of the crisis."

With its extensive network, barangay-based enterprises could provide much needed retraining of the laid off Filipino workers' current skills or for skills-shift and even alternative jobs, according to Estrada, former president of the League of Municipalities of the Philippines.

Estrada said Republic Act 9178 has been supporting the formation and growth of small barangay-based enterprises with assets of less than P3 million that engage in production, processing and manufacturing of commodities including agro-processing, trading and services.

Businesses registered with the BMBE program enjoy exemption from income taxes and minimum wages rates, specially dedicated credit windows from financial institutions and guarantors, and pay only minimal taxes and fees. The program was initially provided with a P300-million special revolving fund.

"Barangay-based businesses, particularly those in the BMBE network, already form an operational and vibrant industry that has been keeping our economy afloat despite the global recession. The challenge to the national government now is to how maximize this system to help affected workers immediately become economically productive again," Estrada said.

Estrada said that on top of those already provided for by the BMBE law, the national government should grant additional incentives to barangay-based enterprises that would participate in the retraining and hiring program for retrenched Filipino workers.

Estrada lauded Labor Secretary Marianito Roque for organizing his proposed workshop, and also for sealing an agreement with the Federatuon of Filipino-Chinese Chambers of Commerce and Industry (FFCCCII) for employment of affected workers which forms part of his "special incentives package" proposal.

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