Proposed ₱750 National Minimum Wage Increase

This week, news (also this news video) came regarding the proposed law increasing national minimum wage to P750. The proposed law met opposition from the business community in Cebu and Mandaue City.

The Mandaue City Chamber of Commerce (MCCI) Vice President, Steven Yu, said that the proposed law will hurt SMEs.

For me, this is particularly true in Mandaue City where most companies range from small to medium-sized.

Based on National Statistics Office and Small and Medium Enterprise Development Council Resolution No. 1, Series 2003 as mentioned in this discussion paper regarding SMEs, a micro enterprise consists of 1-9 employees with ₱3 million or less in assets, small enterprise consists of 10-99 employees with ₱3-₱15 million in assets and a medium enterprise consists of 100-199 employees with ₱15-₱100 million in assets.

These enterprises dominate the economy and that includes Mandaue City where SMES are typically engaged in retail, wholesale, and light manufacturing. These types of companies cannot just increase the prices of their products and services overnight. Therefore, it is not feasible to impose upon them a national minimum wage of ₱750 a day which is around 200% increase from the present minimum wage of ₱366 in Metro Cebu.

This is not a show of apathy to the plight of the working masses. What is meant is the invitation to determine a win-win solution to the problem based on the specific circumstances of the situation.

Common Sense and Blogging

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According to Merriam-Webster, common sense is sound and prudent judgment based on a simple perception of the situation or facts.

As I reflected on starting this blog or website, I thought that documenting my thoughts in a blog would show how my common sense would develop and improve over time.

That is just one side of the coin, however. Documenting my thoughts in a blog would also show upon hindsight how poor my common sense at the start of my blogging, recording not just insights but the lack thereof.

 

When employees cry illegal dismissal…

There is no illegal dismissal at all if there is no dismissal in the first place.

… sometimes they were not really dismissed at all.

In my humble experience, employees sometimes mistakenly believe that management’s verbal reprimand on them is already dismissal or termination of their employment.

What seems to be a dismissal on the employees’ mind was just an unintentional verbal outburst made by management in a heat of anger Or frustration.

But Filipinos as we are, we are quite a sensitive lot. And we usually take offense of insults as attacks on our person.

Thus, what happens is, on the next day, the employees go to DOLE or the Regional Arbitration Branch, instead of going to work.

We know what happens next. But in this kind of situations, the employees lose their labor case and waste time, effort, and money.

Illegal dismissal

Sumandi vs. Leogardo, Jr. (G.R. No. 67635, January 17, 1985)

Sumandi was an employee of American Rose, a hardware operated by Co Chun Ton. The latter’s son, Rodolfo Co, got married and was given by his father a separate business, selling lamps and electrical supplies, named Guaranteed Best Marketing and registered under Rodolfo Co. Eventually, Sumandi was transferred to the new store, Guaranteed Best Marketing, operated by and registered under Rodolfo Co but was compelled to submit a resignation letter to his former employer, American Rose, without payment of separation pay from the latter. The Supreme Court ruled that Rodolfo Co was a successor-employer and that the rights and privileges of Sumandi under his former employer survived as to be operative against the successor-employer.

Moral lesson for employers: be careful of continuing the employment of the employees of your  predecessor companies. You might pay for the length of service for their previous employment.