Fix it if it’s broke

While we’re at it, we might as well fix the problem where labor always demands salary increases, but the system simply does not address the truth and reality of business and economics.

Every year two things happen with almost certain predictability.

At the year’s end, a number of major companies and corporations will proudly announce how their publicly listed shares have gone up in value and how profits from year to year have risen. In other words, they’re telling the world they made money.

On the other hand, with absolute certainty, we can predict that the labor sector will sometime from year to year, demand for across the board salary increases to offset the growing cost of living.

Why not abolish the existing system of legislated wage increases for Metropolitan areas and replace it with a system where companies are required to give “profit share” to employees based on their annual reports (profit) and their income statements with the BIR.

If a corporation is proud enough to tell the world they made money, they should also be responsible enough to share some of their profits with the employees who helped create those profits.

Under such a system, even the employees would have more motivation to be productive and protect the interest of the companies they work for since company profit will also be their profit.

People who fear that taxes are simply being stolen can give profit shares, which would reduce their tax liability. So if you don’t want your taxes stolen, then share it with your people. Bless those who are first in line: your employees.

Such a system will also expose or force companies to be clean about their tax responsibilities and accountability. On the other hand, companies who are not profiting or are in the red will have no problem showing their employees and unions, that demands for salary increases are pointless unless there are profits. –cito Beltran, Philippine Star