ECOP urges gov't to help micro industries give 13th month pay
The Employers Confederation of the Philippines (ECOP) urged the government on Friday to help micro companies get funds so they can still give the 13th month pay of their employees.
“There are micro companies that requested if government agencies can advance some money to those who are cash-strapped, they are willing to pay the 13th month pay,” ECOP president Sergio Ortiz-Luiz said during an interview with CNN Philippines.
Ortiz-Luis made the appeal in response to the proposal of Labor Secretary Silvestre Bello III to exempt distressed companies from paying the 13th month pay to their employees.
The ECOP official noted that 30 percent of the country’s industries are composed of micro companies and around half of which have already closed down during the pandemic.
“The ones operating are still waiting. Many of them are still waiting for assistance from the government,” Ortiz-Luis said.
He said the deferment of the payment of the 13th month for these companies is “not really an option” because “the responsibility to pay will still be there.”
The ECOP official admitted that the other suggestion of Bello to have the 13th month pay be paid by distressed companies on a staggered basis is also an option.
“That is an option that can be taken but as we are saying, if a government agency can advance the money, maybe, that can be a better arrangement, and then, they can just pay it to whatever agency on a staggered basis,” he said.