PNoy urges firms: Adopt profit sharing for workers

MANILA, Philippines – President “Benigno” Aquino III asked businessmen to consider creating a profit sharing or productivity incentives plan, a measure he has been advocating since he was part of Congress.

“We are advocating and we are asking: Can we not come up with an incentive program for our workers wherein if there is an opportunity? Should we not encourage going back to the fundamentals which are labor and management working together as keys to any company’s success?” Aquino said in his speech at the 32nd National Conference of Employers of the Employers Confederation of the Philippines at Marriott Hotel.

“If we seize the paradigm of looking at them as mere input costs and see them as partners towards progress… with that focus, I understand and I believe we can achieve our rightful place in the sun,” he said.

Aquino, however, stood firm on his position not to push for a legislated wage hike. He said wage boards, on the other hand, should expeditiously determine the appropriate wage increase.

“We have no intention of asking Congress to legislate an across the board increase in wages, but the Bangko Sentral ng Pilipinas does believe that certain wage adjustments through the regional wage boards can be absorbed by the economy,” he said.

Aquino asked businessmen not to look at his proposal of a wage hike as a threat to their businesses.

“Don’t look at this as a threat. Just imagine: In a few years, our population will undoubtedly grow. Can you imagine if that growth in population were coupled with an enhanced purchasing power? Can you imagine if more Filipinos had jobs that could afford them more than just their basic needs,” he asked.

“An economy like that would be a boon to your businesses, which would in turn lead to expansion and the hiring of more labor. The balancing act that we are currently undertaking was envisioned to create that kind of virtuous cycle,” he added. –Willard Cheng, ABS-CBN News