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PGMA's Speech during the 29th National Conference of Employers by the Employers Confederation of the Philippines (ECOP) |
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Centennial Hall, Manila Hotel, City of Manila |
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May 15, 2008 |
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Thank you very much, Mike for your very kind and
generous introduction. Secretary Favila and the other members of government who are here today; Jun Ortiz-Luis, Donald Dee and the other top brass of ECOP; David Chua, the new generation representative who chairs this Conference; ladies and gentlemen. Congratulations! for being devoted to striking a balance between employers’ interest and workers’ welfare. That is what ECOP is known for. Since your birth in 1975, ECOP has been the voice of the business community on employment, industrial relations, labor and related social policies. Thank you for your special task and thank you for doing it so well. Your theme this year, “The Empowered Workplace,” recognizes that today in order to create an empowered workplace, management’s role must change from a command-and-control mindset to a responsibility-oriented and supportive environment in which all employees have the opportunity to do their best. I was just re-reading the book, “The World is Flat” because when I was reading the talking points and the introductory material for your theme, it's as if I was reading “The World is Flat.” Although I read it three years ago, I re-read it again today. This is the bestselling book by the author and journalist Tom Friedman. He uses the terminology the world is flat, but the world he is describing is exactly the world that John Tan was describing earlier. And I can see that ECOP's vision of the empowered workplace embraces the notion indeed that the world is flat. Friedman outlines the compelling and revolutionary change that has affected the world as a result of tectonic shifts in the post-cold war order. You know, when the Berlin Wall fell started the coming of age of China, Russia, the Eastern countries, Russia breaking up into not one empire but many equal nations. And also the changes that happened with the impact of technology. Our awardee for this year, Andrew Tan is really a personification of the recognition of the importance of technology because Andrew's shares, Andrew's stock has risen because he pioneered in being the landlord of all those BPOs and that is a representation of the new world that ECOP is describing. ECOP’s theme underscores the substantial elements that make up the new and thriving face of the Filipino employer in the flat world. In the world that is flat, office zones are designed by borderless business, and enterprise competitiveness is driven by labor creativity and technological innovation. Yes, the world is flat! You don't have to have large starting capital to make it if you have creativity and innovation. And if you know how to bring out the best in those who work in your theme. Yes, the world is flat and the flatter it gets, the more it requires companies to adapt and innovate, to survive and thrive. And that is what the theme of ECOP is all about this year. More and more companies are realizing that developing and supporting an empowered workplace results in a return on investment for all stakeholders in the enterprise, not just the workers but also the employers and the customers and the suppliers. Employers, labor and government, make joint decisions because the world is flat. And our joint decision-making at the policy level is institutionalized by the Regional Tripartite Productivity and Wage Boards where ECOP is very active. I would like to take this opportunity to ask you to join me in thanking the Wage Boards for doing overtime work last Labor Day. Thank you very much to all those who are in the Wage Board. You know in the past and up to today, in order to promote domestic tourism -- although we celebrate the national holiday on the day itself determined by law where all the ceremonies and all the commemorations are done -- we usually move the day-off to the day, the closest day to the weekend, either Monday or Friday. But Labor requested that, "No, let us not make Labor Day the day-off Friday.” ‘Coz Labor Day was Thursday this year. They said, "Keep the Labor Day day-off Thursday not Friday." So it was a no-work holiday for all on May 1, except for the Wage Boards. And because the Wage Boards have been working very hard, last night Secretary Marianito Roque -- who is not here today because I will explain in a moment what other job he has to do today -- last night Nitoy Roque reported to me that as a result of the discussions initiated on Labor Day, the NCR Wage Board has come to some agreement which will be refined further today in a meeting, ongoing, and that was why Nitoy Roque is attending to that. The agreement they have come to is 20 pesos added to the minimum wage in the sense what is... but the refinement to be determined today is whether it will be 15 minimum wage addition plus 5 percent... 5 pesos COLA or 20 minimum wage addition. Nitoy Roque will be coming I believe to join ECOP when their meeting is finished today and you will get the final decision of the Wage Board. Last night, Nitoy also reported -- and I thank the Region X for being here -- that the Region X Wage Board has also finished its deliberations. Before the deliberations, the existing cost of living allowance in Region X was 26 pesos. The Regional Wage Board decided that of the 26 pesos, 16 pesos will now be part of the integrated minimum wage. And of the remaining 10 pesos COLA, there will be an additional 12 pesos. So, a 12-peso increase in the takehome pay of our workers. So thank you to the Wage Boards who have finished your work, and we look forward to the Wage Boards in the other regions coming up with their work soon. We have also been working for non-wage benefits. Yesterday, I understand Senator Angara and Congressman Manny Guinigundo were here in ECOP where you discussed the legislative agenda of ECOP. And earlier our speakers talked about the things that you have to be doing in the days to come on legislation, Jun Ortiz-Luis mentioned some of them being in the resolutions but let us also thank Congress, especially the House of Representatives for work already accomplished. Let us thank the House of Representatives for the swift passage of the tax exemption bill for minimum wage-earners. This bill has been balanced with a measure on simplified income taxation. I hope that... I want to congratulate the House for a beautiful bill and we hope the Senate will soon pass its own version. I understand from our Legislative Liaison Office that the Senate has a different version but also a very good version. So, we hope that whatever version will come out or whatever compromise will come out in the Bicameral Conference Committee will be something that will be good for employers and good for workers as well. So, this is what we wish to do in an empowered workplace. It is especially important to empower the workplace at a time today, not just because the world is flat, but also there are clouds in the world that are driving up the price of oil and food, particularly rice. Thankfully, in large part because we have taken advantage of the blessings of a flat world including information technology, education using Business Process Outsourcing and knowledge outsourcing as among our drivers of growth. We are now in a vastly improve position to weather the global storm than at any time in recent memory. Our response to the rice situation is based on three fundamental needs: One, to ensure supply; two, to make sure distribution of rice gets to the people who need it most efficiently and cost-effectively; and lastly, to be vigilant that unscrupulous traders do not price gouge and exploit the situation. To help in our fundamental need, number one, which is to ensure supply. Last May 2nd, I signed an Executive Order -- still to be released by Secretary Ermita -- encouraging large corporations to provide for the rice requirements of their employees. But because the world is flat, we use the word ‘encourage,’ we do not use the word ‘require.’ The one that we gave an order to is not the corporation. We gave an order to the National Food Authority to encourage large corporations to provide for rice requirements of their employees either by engaging in the production of rice or by importing rice to meet their employees’ requirements. I remember going to one of the top cement factories in Cebu -- one of the model employers, in fact -- and when I was telling them about rice, they said because Cebuanos eat kamote and corn, they will instead plant either kamote or corn in their available land. We encourage those large corporations with existing landholdings determined to be suitable for rice production, to indeed engage in rice production. Those without landholdings who decide to engage in rice production may lease public agricultural lands for the purpose or subject to mutual agreement with landowners whose lands are still idle to plant on those lands. Again subject to mutual agreement because the world is flat it must be because of common consensus and not anybody forcing anybody to do anything. Those corporations who decide to import rice may register with the NFA so that the importations can be coursed through the NFA and so that they may be eligible for fiscal privileges provided through the NFA. Now these are for large corporations, meaning, 500 employees and above. But other corporations may enter into agreements or other forms of combination among themselves for the purpose of engaging in the production and/or importation of rice for employees. This is an important non-wage benefit at this important time in our history. After all, the law provides for tax exemption for benefits up to 1,000 pesos worth per month. Making food affordable to employees, indeed, brings about an empowered workplace. Because if they have the rice, they don’t have to worry about the most basic need of their families. I would like to thank ECOP and congratulate you because ECOP has long realized the importance of developing and maintaining an empowered workplace. You have become a cornerstone of our country’s development. Prior to the flat world we wanted an empowered workplace because of social justice. But now that the world is flat, your message is clear -- an empowered workplace is also good for business, good for the economy, and good for our country. And therefore, in promoting an empowered workplace ECOP is a major partner in helping the Filipino nation take advantage of the flatness of the world and move into the first world in 20 years. So to ECOP, I say, “Salamat, “flat-worlders.” Maraming salamat sa inyong ginagawa para sa kapakanan ng manggagawa at inyong mga negosyo. Maraming salamat sa inyong lahat. |