CNN Philippines Correspondent Tristan Nodalo and Digital Producer Janine Peralta contributed to this report.
Metro Manila (CNN Philippines, October 14) — The Department of Labor and Employment said Wednesday it is considering helping distressed businesses give 13th month pay to their workers amid discussions to exempt those who have been heavily affected by the COVID-19 pandemic.
Labor Undersecretary Benjo Benavidez said this was one of the options discussed during the National Tripartite Industrial Peace Council meeting with labor groups on Tuesday.
“Willing naman po tayo tumulong sa kanila kung kaya. Sa tingin ko naman po under the leadership of Sec. Bello gagawan ng paraan na matulungan po,” Benavidez said in a virtual cafe session with the media.
[Translation: We are willing to help if we can. I believe that under the leadership of Secretary Bello, we will make a way to help them.]
Labor Secretary Silvestre Bello was supposed to join the online session to announce the final decision on the 13th month pay but he failed to attend as he was in the middle of another meeting.
However, Benavidez mentioned that some criteria on “distressed” businesses were included in the draft department order. The DOLE previously said that it may allow companies or businesses which may fall under the “distressed” category to defer or apply for exemption on the payment of the 13th month benefit.
“Isa sa mga criteria ay kung ang isang employer ay lugi na nang at least 50% for the last three quarters…pero wala pa po ito sa pinal,” said Benavidez.
[Translation: One of the criteria is that the employer suffered losses of at least 50% in the last three quarters…but this is still not included in the final (draft).]
He added that businesses would have to apply with the department for the exemption.
There were 92 people who attended the meeting on Tuesday but some labor groups said they did not reach an agreement.
“Mukhang merong deadlock doon sa proposal ng Employers Confederation of the Philippines o ECOP na i-subsidize na lamang ng ng gobyerno ang 13th month pay ng mga small and micro enterprises na hindi makayanan ibigay ang 13th month ng mga empleyado nila,” TUCP spokesperson Alan Tanjusay told CNN Philippines in an interview.
[Translation: It seems there was a deadlock on the proposal of the Employers Confederation of the Philippines or ECOP to subsidize the 13th month pay of small and micro enterprises who are unable to provide the bonus to their workers]
Majority of the participants agree that ECOP’s proposal is the “only way out” to solve the issue on the 13th month mandatory benefit.
Government agencies like the Department of Finance and Department of Budget and Management were “non-committal” on the proposal of the employers’ group.
“Walang sagot ang Department of Finance and Department of Budget and Management,” Tanjusay said.
[Translation: There was no answer from the Department of Finance and the Department of Budget and Management.]
The groups remained uncompromising, saying there should be no deferment, postponement or even cancellation of the annual mandatory benefit to workers. They insisted that the government should carry the burden of making sure workers will be given the mandatory benefit entitled to them under the law.
Tanjusay said that the Labor Department is expected to consolidate within this week all ideas and proposals on the issue of 13th month pay.
TUCP said that half of the country’s 43 million workers are entitled to their 13th month pay.
Another meeting with the tripartite council is expected next week.
